cluster diagnostic report igtr aurangabad

Cluster Diagnostic Report IGTR Aurangabad

Auto and General Engineering Cluster, Aurangabad Defence and General Engineering Cluster, Nashik Auto and General Engineering Cluster, Pune

Technology Cluster Manager Technology Center Systems Program (TCSP)

Office of DC MSME, Ministry of MSME

21st March 2020

Technology Cluster Manager: TCSP Cluster Diagnostic Report – IGTR, Aurangabad

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Disclaimer

This Report has been prepared on the basis set out in our engagement contract reference 21/DCMSME/TCSP/CON/TCM/2016/TR with The Development Commissioner, MSME, and Ministry of MSME dated 03rd December 2018 (the “Contract for Supplier Services”) Nothing in this report constitutes a valuation or legal advice.

We have not verified the reliability or accuracy of any information obtained in the course of our work, other than in the limited circumstances set out in the Services Contract. This Report is for the benefit of The Development Commissioner, MSME, Ministry of MSME and the other parties that we have agreed in writing to treat as parties to the Services Contract (together “the Beneficiaries”). This Report has not been designed to be of benefit to anyone except The Development Commissioner, MSME, Ministry of MSME / Beneficiaries. In preparing this Report we have not considered the interests, needs or circumstances of anyone apart from The Development Commissioner, MSME, Ministry of MSME / Beneficiaries, even though we may have been aware that others might read this Report. We have prepared this report for the benefit of The Development Commissioner, MSME, Ministry of MSME / Beneficiaries alone. This Report is not suitable to be relied on by any party wishing to acquire rights against KPMG Advisory Services Pvt. Ltd. (other than The Development Commissioner, MSME, Ministry of MSME / the Beneficiaries) for any purpose or in any context. Any party other than The Development Commissioner, MSME, Ministry of MSME / the Beneficiaries that obtains access to this Report or a copy and chooses to rely on this Report (or any part of it) does so at its own risk. To the fullest extent permitted by law, KPMG Advisory Services Pvt. Ltd does not assume any responsibility and will not accept any liability in respect of this Report to any party other than The Development Commissioner, MSME, Ministry of MSME / the Beneficiaries. In particular, and without limiting the general statement above, since we have prepared this Report for the benefit of The Development Commissioner, MSME, Ministry of MSME / Beneficiaries alone, this Report has not been prepared for the benefit of any other local authority / Trust / etc. nor for any other person or organization who might have an interest in the matters discussed in this Report, including for example General Practitioners / those who work in the respective sector or those who provide goods or services to those who operate in the respective sector. Please note that the Services Contract makes this Report confidential between The Development Commissioner, MSME, Ministry of MSME/the Beneficiaries and us. It has been released to The Development Commissioner, MSME, Ministry of MSME/the Beneficiaries on the basis that it shall not be copied, referred to or disclosed, in whole or in part, without our prior written consent. Any disclosure of this Report beyond what is permitted under the Services Contract will prejudice substantially this firm’s commercial interests. A request for our consent to any such wider disclosure may result in our agreement to these disclosure restrictions being lifted in part. If The Development Commissioner, MSME, Ministry of MSME / the Beneficiaries receives a request for disclosure of the product of our work or this Report under relevant laws and regulations, having regard to these actionable disclosure restrictions The Development Commissioner, MSME, Ministry of MSME / the Beneficiaries should let us know and should not e disclose in response to any such request without first consulting KPMG Advisory Services Pvt. Ltd and taking into account any representations that KPMG Advisory Services Pvt. Ltd might make it.


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Acknowledgment

We would like to express our sincere gratitude to the Ministry of MSME, o/o DCMSME and its officials for their involvement and valuable inputs during the preparation of Cluster Diagnostic Report for clusters identified in the catchment areas of IGTR, Aurangabad. We would like to express special thanks to Shri. Ram Mohan Mishra, IAS (Special Secretary and DC-MSME) for his proactive support and guidance to the team during the entire process.

We would also like to express our gratitude to Shri. Piyush Srivastava (ADC), Shri. Virinder Sharma (Director), Shri. Sanjeev Chawla (Director), Dr. Sunil Kumar Newar (Deputy Director), Shri. B.M. Saxena (Assistant Director) and TCSP PMU Team for extending their support during the entire process.

We would like to convey our sincere thanks to Shri H.D. Kapse, MD, IGTR Aurangabad and other officials of the Aurangabad TC for the cooperation and the support extended during this study and other related initiatives at IGTR including the support during the on-site visit for the proposed Technology Centre. Also, we must extend our sincere thanks to all the stakeholders including industry associations such as CMIA, MASSIA, Waluj Industries Association ancillary units who gave us their valuable time and provided their thoughtful feedback and General Engineering Sector insights. On similar lines, MCCIA Pune, ACMA Pune & CII Pune also have extended their support during the DSR study of Pune Cluster. In the case of Nashik we have been supported by Mr. Joshi Director of District Industries Centre, Management committee of NIMA, AIMA MACCIA Nashik showed interest in all aspects of this diagnostic study for Nashik cluster.

Revision History Version Issue Date Prepared by Reviewed by

1.0 14th February 2020 Mr. Naveen Gupta Mr. Vikrant Bijamwar 2.0 17th February 2020 Mr. Naveen Gupta Mr. Vikrant Bijamwar 3.0 18th February 2020 Mr. Vikrant Bijamwar Ms. Punita Bansal 4.0 7th March 2020 Mr. Naveen Gupta Mr. Vikrant Bijamwar 5.0 21st March 2020 Mr. Tushar Gupta Mr. Vikrant Bijamwar


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List of Abbreviations

ACMA Automotive Component Manufacturers Association ADC Assistant Development Commissioner AIMA Ambad Industries Manufacturers Association AM Additive Manufacturing ARAI Automotive Research Association of India BAMU Baba Saheb Ambedkar Marathwada University BoM Bank of Maharashtra CIEPT Central Institute of plastic engineering and technology CII Confederation of Indian Industry CMIA Chamber of Marathwada Industries and Agriculture DC Development Commissioner DIC District Industries Center DIH Defence Innovation Hub DMIC Delhi – Mumbai Industrial Corridor DPIIT Department for Promotion of Industry and Internal Trade DSR Diagnostic Study Report EV Electric Vehicle FDI Foreign Direct Investment GMP Good Manufacturing Practices GoI Government of India HCV Heavy Commercial Vehicle IBEF India Brand Equity Foundation IC Engine Internal Combustion Engine ICAT International Centre for Automotive Technology, Manesar IGTR Indo German Tool Room IMTMA Indian Machine Tool Manufacturers Association LCV Light Commercial Vehicle M/o MSME Ministry of Micro Small Medium Industry MAC Marathwada Auto Cluster, Aurangabad MASSIA Marathwada Association of Small-Scale Industries and Agriculture MCCIA Maratha Chamber of Commerce Industries and Agriculture MCED Maharashtra Centre for Entrepreneurship development MESCO Maharashtra Ex-serviceman Corporation MIDC Maharashtra Industries Development Corporation MSI-CDP Micro Small Industries Cluster Development Program MSME Micro Small Medium Enterprises MSME DI Micro Small Medium Enterprises Directorate of Industries MSSIDC Maharashtra Small Scale Industries Development Corporation NATRAX National Automotive Testing Tracks, Indore NATRiP National Automobile Testing and R&D Infrastructure Project NCR National Capital Region NDIC Nashik Defence Innovation Centre NEC Nashik Engineering Cluster


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NIAIMT

National Institute for Automotive Inspection, Maintenance & Training, Silchar

NIMA Nashik Industries Manufacturers Association NSIC National Small Industries Corporation, Aurangabad OEM Original Equipment Manufacturer PISC Project Implementation and Sanctioning Committee SAE Society of Automobile Engineers SBI State Bank of India SICOM State Industrial Development Corporation of Maharashtra SWOT Strength, Weakness, Opportunities, Threats TC Technology Center TCM Technology Cluster Manager TCSP Technology Center Systems Programme WDFC Western Dedicated Freight Corridor WIA Waluj Industries Association


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Table of Contents 1. Executive Summary 8

2. Introduction 9

3. Approach and Methodology 9

4. Technology Centre IGTR Aurangabad – An Overview 10

4.1 Achievements in Production Portfolio 11

4.2 Achievements in Training Portfolio 12

4.3 Aurangabad TC: Revenue for the last 5 years 13

4.4 Aurangabad TC: SWOT Analysis 14

5. Auto and Auto Component Industry in India- An Overview 14

5.1 Market Size 15

5.2 Investments 15

5.3 Government Initiatives 16

6. Auto component and General Engineering Industry in Maharashtra 17

7. Key Stakeholders&Institutional Framework in Aurangabad, Nashik & Pune Cluster 18

7.1 Government Agencies 18

7.2 Industry Associations & SPVs 18

7.3 Academic & Skilling Institutions 20

7.4 Financial Institutions 20

7.5 Major OEMs 21

7.6 Raw Material Suppliers 21

8. Overview of the Clusters 21

8.1 Auto and General Engineering Cluster, Aurangabad 22 8.1.1 Understanding of Aurangabad cluster 22 8.1.2 Aurangabad Cluster: SWOT Analysis 23 8.1.3 Aurangabad Cluster Needs Assessment – Key Issues and Challenges 25

8.2 Defence, General engineering and Electrical Cluster, Nashik 27 8.2.1 Understanding of Nashik cluster 28 8.2.2 Nashik Cluster: SWOT Analysis 29 8.2.3 Nashik Issues and Challenges 30

8.3 Auto and General Engineering Cluster, Pune 32 8.3.1 Pune Cluster Understanding 34 8.3.2 Pune Cluster: SWOT Analysis 34 8.3.3 Pune Cluster: Key Issues and Challenges 35

9. Recommendations 36

9.1 Skill development and training facility: 36 9.1.1 Electric Vehicle (EV) and hybrid vehicles 38


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9.1.2 Industry 4.0 38 9.1.3 Internet of Things (IoT) 39 9.1.4 Courses related to existing technologies 39

9.2 Improvements in Production Facility 39 9.2.1 Process oriented Improvements 39 9.2.2 Quality oriented Improvements 40 9.2.3 Efficiency oriented Improvements 40

9.3 Other Recommendations for the Cluster 40 9.3.1 Marketing related recommendations 40 9.3.2 Formation of Consortium at Cluster level 41 9.3.3 Fostering Entrepreneurship and Innovation 41 9.3.4 Establishing a Finishing school at cluster level 41

10. Annexures 42

10.1 Annexure I: List of Stakeholders Contacted 42

10.2 Annexure -II: Recommendations Matrix 45

10.3 Annexure III: Cluster Prioritization Matrix 47

10.4 Annexure IV: Map of Industrial Areas in Aurangabad Cluster. 50

10.5 Annexure V: Map of Industrial Areas in Nashik Cluster. 51

10.6 Annexure VI: Map of Industrial Areas in Pune Cluster. 52


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List of Figures

Figure 1: DSR Methodology ................................................... Error! Bookmark not defined. Figure 2: Press Tools segments growth- 2005-2019 .............. Error! Bookmark not defined. Figure 3: Press tool achievements ......................................... Error! Bookmark not defined. Figure 4: Die Casting segment Growth 2005-2019 ................. Error! Bookmark not defined. Figure 5: Special Achievement in Die Casting Dies ................ Error! Bookmark not defined. Figure 6: Placement status in last 8 years (No. of trainees placed)Error! Bookmark not defined. Figure 7: IGTR Aurangabad Revenue in Last 5 Years ............ Error! Bookmark not defined. Figure 8: Automobile Industrial Hubs in Maharashtra ............. Error! Bookmark not defined. Figure 10: Self-sustaining aspect of Automobile Manufacturing Cluster in Pune ........... Error! Bookmark not defined. Figure 11: Structure of Automobile Manufacturing Cluster in PuneError! Bookmark not defined.

List of Tables

Table 1: Services portfolio offered by Aurangabad TC ........... Error! Bookmark not defined. Table 2: Status of Trainees Trained / Awarded (As On 31‐03‐2019) ................................... 12 Table 3: Aurangabad TC SWOT Analysis ........................................................................... 14 Table 4: Clusters for Aurangabad TC ..................................... Error! Bookmark not defined. Table 5: Aurangabad Cluster Understanding ....................................................................... 23 Table 6: Aurangabad Cluster: SWOT Analysis .................................................................... 24 Table 7: Aurangabad Cluster: Key Issues & Challenges ..................................................... 27 Table 8: Nashik Cluster Understanding ............................................................................... 29 Table 9: Nashik Cluster SWOT analysis .............................................................................. 30 Table 10: Nashik Cluster: Key Issues and Challenges ........................................................ 32 Table 12: Understanding of Pune Cluster ............................................................................ 34 Table 13: SWOT analysis of Pune Cluster .......................................................................... 35 Table 14: Key Issues and challenges of Pune Cluster ......................................................... 36


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1. Executive Summary As a part of the TCM project, a detailed analysis of IGTR, Aurangabad and prioritized clusters was undertaken to understand TCs available infrastructure for production and testing and map them with cluster requirements. Apart from trying to get a detailed understanding of the technology center, extensive exercise was to understand the three prioritized clusters and map them with the existing services of IGTR, Aurangabad. The three prioritized clusters were:

1) Auto and General Engineering Cluster, Aurangabad 2) Defence, General Engineering and Electrical Cluster, Nashik 3) Auto and General Engineering Cluster, Pune

In the early 1980s, setting up Bajaj Auto paved the path for developing an auto-ecosystem in Aurangabad which led to rapid industrial growth in this region. Aurangabad hosts a group of industries and its ancillaries and forms one of the major auto clusters in India. It is the second- largest auto cluster in the State of Maharashtra after Pune. It has 4 major industrial areas, divided into four zones namely Chikalthana, Waluj, Chitegaon (Bidkin) and Shendra. Delhi- Mumbai Industrial Corridor is now setting up a new industrial belt namely Shendra- Bidkin Industrial Park. Aurangabad cluster is involved in manufacturing diversified products like auto components, plastic components, white goods/ appliances and food & beverages with a huge number of products being produced by SMEs.

Nashik is one of the established major auto, engineering and electrical hubs in India. It is the third-largest engineering cum auto hub in the state of Maharashtra after Pune and Aurangabad. The other sectors prevalent in Nashik are pharma, food, and chemicals. There are two major industrial areas in and around the Nashik municipal area – namely Satpur and Ambad.

Pune is a highly evolved cluster viz a viz automotive and engineering parts. It is one of the top destinations for auto and engineering items in India. It covers around 30% of vehicle production (all types put together). There are five major clusters in and around Pune and they are Pimpri- Chinchwad, Ranjangaon, Chakan, Jejuri, Baramati.

Key Observations of DSR:

Some of the key observations and issues that came up during the study are as below: 1. All three clusters are mature and house over 48,000 engineering and auto MSMEs

employing over 530,000 people. A total of twelve vehicle manufacturers and have contributed immensely to clusters' growth and viability.

2. With the changes in the auto sector and the growing need to introduce EVs and hybrid vehicles, a new market has emerged, in almost all aspects of the manufacturing chain i.e. design development, manufacturing, testing, servicing and field support. The opening up of the manufacturing chain also opens up huge opportunities for the TC and MSMEs in the region.

3. Cost reduction has become a trend in major auto component manufacturing players because of sudden changes in the auto sector.

4. Emerging technologies (BS-VI, Electronic Vehicles, etc.) and changing market needs call for massive skill upgradation in production and servicing amongst the cluster players.

5. Governments focus on increasing the domestic defence production with the introduction of offset requirements for the major OEMs has got many MSMEs in the cluster interested in diversification.


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2. Introduction

Micro, Small and Medium Enterprises (MSMEs) are growth boosters of the economy. They are considered as engines of economic growth in both the developed and developing countries and have immense potential to contribute to the overall development of the country. Micro, Small and Medium Enterprise (MSME) clusters are present worldwide and the success of these clusters depends upon their mutual support and efforts to share supply chain and other resources. Governments across countries have identified the potential that can be leveraged from MSMEs and have accordingly launched several programs and schemes to increase their overall competitiveness.

The Automobile and Engineering Industry is strategically important for all the progressive economies as it is closely associated with the manufacturing and infrastructure sector. Automobile and Engineering can be diversified into multiple segments. If all the challenges this industry faces can be rectified in time and with adequate support of the government entities, the Industries in Aurangabad, Nashik, and Pune could face competition from countries such as China and Korea.

3. Approach and Methodology Approach

A multi-step approach was followed to comprehensively cover the issues, demands, and changing needs of the cluster and map the cluster requirements with TC offerings. As a part of the process, TCM’s technical expert, Mr. Venkatramanan along with Mr. Vikrant Bijamwar, Cluster Manager and Mr. Naveen Gupta, Support Consultant, Aurangabad conducted a desk review and undertook in-person industry consultations for the preparation of this Diagnostic Study Report (DSR). Cluster Development Expert, KPMG Mr. K.P. Lal played a pivotal role in shaping the study with his timely advice.

While undertaking this study TCM experts first reviewed the existing literature on IGTR, Aurangabad and held extensive consultations with industry representatives to map their requirements vis a vis planned TC offerings and then identify new services that can be offered by TC.

The automotive vehicle and parts production belt in western India extends from Mumbai- Nashik-Pune to Aurangabad. Due to their proximity and connectivity, their needs and performances are interlinked and interdependent to a large extent. Equally, the Aurangabad TC with its existence for over four decades aims to enhance its outreach to cover the needs of this sector. Hence the study of the three centers- Aurangabad-Nashik & Pune was taken up simultaneously and the common needs of the clusters were identified.

Methodology Step: 1 Desk Review of Factors Affecting Diagnostic Study

A detailed desk review of the ‘Modernization of DPR’ along with Cluster Needs and the basic requirements of the Automobile and General Engineering Industry in Aurangabad belt was conducted. As a part of this exercise, secondary research was conducted to do preliminary mapping of TC offerings with the requirements of the industry in Aurangabad belt.

The exercise also tried to identify the current requirements and upcoming trends in the automobile and general engineering industry. The desk research also focused on identifying the key general engineering clusters in the catchment area of the Technology Centre. Three industry clusters that provided complete representation of the region in terms of products and services offered were shortlisted for carrying out the detailed study.


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Step I Step II

Desk Review of Modernization of IGTR, Aurangabad and Engineering Industry in Aurangabad

Step III Step IV

Identification of Key Stakeholders

Stakeholder Consultation Analysis and

Recommendations

Figure 1: DSR Methodology

Step: 2 Identification of Key Stakeholders

To validate the preliminary findings from the desk review, a sample of key stakeholders from the prioritized clusters that ensured representation from industry associations, MSMEs, Governmental bodies and Industry Associations was taken. While preparing the list of key stakeholders, heterogeneity, and a representative sample of the thought process and complexity of the information being sought were two important parameters considered.

Step: 3 Industry Consultations

To understand the business requirements, issues and challenges being faced by the industry in Aurangabad and to develop an understanding of how TC can work on these issues, a stakeholder consultation with 40+ units were conducted. Industry associations, manufacturers and suppliers were contacted to get a complete view of the expectations of the industry from the Technology Centre.

Step: 4 Analysis and Recommendations

Inputs and feedback received from all the stakeholders were analyzed carefully by a team of experts. Stakeholder inputs and suggestions were then framed into a set of recommendations that were discussed with the TC representatives.

4. Technology Centre IGTR Aurangabad – An Overview The MSME - Technology Centre, Aurangabad (IGTR) has been established as a Govt. of India Society under the technical co-operation program between Govt. of India and Govt. of the Federal Republic of Germany. The management of the affairs of the Society rests with the Governing Council constituted by the Govt. of India. Special Secretary & Development Commissioner (MSME), Govt. of India is the President of the Society and Chairman of the Governing Council.

IGTR is an ISO 9001:2008, ISO 29990:2010, ISO 14001:2004, BS OHOSAS 18001:2011, ISO 50001:2011 and ISO/IEC 17025:2005 certified organization with NABL accredited quality assessment laboratory.

IGTR Aurangabad offers a diversified set of services for industry and students. The services offered by IGTR have been categorized into three service lines namely production, training and consulting services. The sub-services offered under these categories are described in table 1:


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1000 1500

TON TON

63 TON

300 TON

630 TON

2.5M 3M 2M

1M 0.5M

Cover Development

Intricate parts Tooling solution

Heat Shield Tooling

Thin Sheet gasket tooling

Multi Cavity Progressive

Tooling

Services Details of Portfolio

Production

• Manufacturing of intricate press tools, moulds, die casting dies, jigs, fixtures & gauges.

• On the job training of trainees to impart the highest degree of skill in design & manufacturing of tools & dies.

• Provide total tooling solutions. • Tool try-outs - press tool/injection mould. • Batch production on press/injection moulding machine. • Machining of precision components. • Product conformance & inspection.

Training

• Long term, medium-term and short-term training in various disciplines of die and tool manufacturing technology.

• Training 3D engineering, reverse engineering, automation, robotics, etc. • Customized training courses for leading OEMs.

Marketing & Consulting

• Consultancy services including field surveys and feasibility studies. • Quality assurance & analytical services. • Product & process development. • Productivity & quality improvement. • Execution of turnkey projects. • Conducting seminars in tool and die technology area.

Table 1: Services portfolio offered by Aurangabad TC

4.1 Achievements in Production Portfolio:

Over the years, the production department has enhanced the range of press tools covered from 63 Tons in 2005 to a current level of 1500 Tons. This corresponds to tools of size 0.5 meter to 3.0 meters. Similarly in case of pressure die casting tools covering 180 Tons to 1600 Tons. Apart from the mere size of the tool they have covered a wide range of simple to compilated tools.

Figure 2: Segmental growth of press tools in tons and million

Figure 3: Some of the key achievements in press tool manufacturing


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450 560

TON TON

180 TON

250 TON

300 TON

1000 TON

1200 TON

1600 TON

800 TON

For Small Dies For Large Dies

Figure 4: Growth in production of dies (Small and Large) from 2005 to 2019

Figure 5: Some special achievements in the production of die casting dies

4.2 Achievements in Training Portfolio:

IGTR Aurangabad has trained more than 1,13,300 number of trainees since 1995 (table 2). Placement figures over the last 8 years have shown a positive trend, during FY 18-19, IGTR achieved 100% placement for its students (figure 6). S.No Type of Courses No. of Trainees

Awarded Ongoing Trained Cumulative Awarded

Cumulative (Trained)

(During 2018-19) (1995-2019) (1995-2019) 1 Long Term

Courses 1075 1647 2722 9751 28143

2 Medium Term Courses

1286 545 1831 3891 5654

3 Short Term Course

6749 - 6749 72959 79509

Total 9110 2192 11302 86601 113306

Table 2: Number of trainees trained

ECU 1616 High

Tonnage Dies

Three Plate DCD Dies

Thin wall casting

component

Multi-cavity Family DCD

Dies


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Figure 6: Placement status in the last eight years

4.3 Aurangabad TC: Revenue for the last 5 years

IGTR Aurangabad’s total revenue generated has grown from Rs 3647 lakh in FY 2014-15 to Rs 4023 lakh in 2018/19. IGTR Aurangabad has remained financially self-sustaining due to the undaunted efforts of the management team over the years. IGTR Aurangabad is one of the leaders in the supply of quality and complex tools to the industry in the region. During FY 2018-19, it generated a cash surplus of Rs 2.97 crore.

IGTR Aurangabad has been successfully offering 1166 training courses to more than 13,415 trainees every year (based on the last 5 years average). IGTR generated a revenue of Rs. 2023.98 lakh from training programs in the financial year ending 31st March 2019. IGTR also supplied Rs. 1868 lakh worth of tools and fixtures to the industry in the same year.

Figure 7: IGTR Aurangabad (Revenue in the last five years)

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

530 490

710 840 880 1000

800

600

400

200

0

1075 1050 990 1200

Placement status in last 8 years (No. of trainees placed)

18 - 19 17 - 18 16 - 17 15 - 16 14 - 15 13 - 14

Revenue from Production Revenue from Training Total Revenue generated

IGTR REVENUE IN LAST 5 YEARS (RS. IN LAKHS)

2827

.53

1548

.34

1098

.55

3647

.67

2467

.71

1055

.88

4118

.29

2916

.9

1015

.21

3633

.67

2136

.83

1320

.61

3423

.96

1526

.52

1764

.57

4023

.76

2023

.98

1868

.42


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4.4 Aurangabad TC: SWOT Analysis

Strengths Weaknesses • IGTR is equipped with excellent and up

to date types of equipment. • The staff is well trained and qualified,

equipped with the skills required to transform the skilling environment in the cluster.

• The TC has an indispensable track record of providing services to the MSMEs in the cluster.

• TCs ability to multi-task in domains like training, production and consulting coupled with its aim of inclusive industrial development makes it a strong player in the region.

• The reputation of the TC in terms of the quality of manufactured tools and dies is par excellence.

• TC is bestowed upon by great leadership and managerial structure which is necessary to run an institution.

• The global market has identified the Indian tooling sector as “raising star” based on its market size and tooling competence.

• The lead conversion rate has been a rising concern for IGTR. Although several leads have been generated in the recent past, the conversion has been abysmally low.

• Manpower is a huge concern in IGTR. The number of people in senior management is less. The shortage of manpower at the senior management level adds on to the burden of those managing the TC.

• The TC lacks a dedicated testing facility and testing team for the tools that are being produced.

• With a gradual shift towards alternative fuels, huge market demand is likely for prototypes and tooling. IGTR currently lacks a setup to meet this demand.

Opportunities Threats • The government of India’s excessive

focus on domestic defence production with the requirement of fulfilling offsets by OEMs will give a major thrust to the domestic defence production. TC can leverage this opportunity by becoming an aggregator.

• Emerging technologies like EV and legislative reforms like BSVI pose a great opportunity for the TC to streamline their production facility according to the emerging market needs.

• TC has an amazing platform to impart knowledge in specialized training courses dovetailed according to the requirements of the TC.

• Global dumping mechanism especially being practiced by China in tools and machinery is a huge threat for the cluster MSMEs and IGTR.

• Technological upgradation and emerging market needs pose a threat for IGTR to evolve at a rapid pace.

Table 3: Aurangabad TC SWOT analysis

5. Auto and Auto Component Industry in India- An Overview

The Indian auto industry became the 4th largest in the world with sales increasing 9.5 percent year-on-year to 4.02 million units (excluding two-wheelers) in 2017. Globally, it was the seventh-largest manufacturer of commercial vehicles in 2018. The Indian auto-components industry has experienced healthy growth over the last few years. The auto-component industry of India has expanded by 10.6 percent to reach a level of US$


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56.2 billion in FY19. The auto-components industry accounts for 2.3 percent of India’s Gross Domestic Product (GDP) and employs as many as 1.5 million people directly and indirectly.

5.1 Market Size

Overall the domestic automobiles sales increased at 6.71 percent CAGR between FY13-19 with 26.27 million vehicles getting sold in FY19. Domestic automobile production increased at 6.96 percent CAGR between FY13-19 with 30.92 million vehicles manufactured in the country in FY19. The Indian auto-components industry can be broadly classified into organized and unorganized sectors. The organized sector caters to the OEMs and consists of high-value precision instruments while the unorganized sector comprises low-value products and caters mostly to the aftermarket category. India’s exports of auto components increased at a CAGR of 8.34 percent, during FY14-FY19, with the value of auto component exports increasing from US$ 10.16 billion in FY14 to US$ 15.17 billion in FY19. This has been driven by strong growth in the domestic market and increasing globalization (including exports) of several Indian suppliers. Growth is further expected to accelerate to 8-10 percent in FY19 due to pick up in the global scenario. Turnover of the aftermarket has increased at a CAGR of 11.35 percent from US$ 5.90 billion in FY14 to US$ 10.10 billion in FY19 and expected to reach US$ 32 billion by 2026. The industry produced a total of 14,427,724 vehicles including Passenger Vehicles, Commercial Vehicles, Three Wheelers, Two Wheelers and Quadricycle in April-September 2019.

According to the Automotive Component Manufacturers Association of India (ACMA), the Indian auto-components industry is expected to register a turnover of US$ 100 billion by 2020 backed by strong exports ranging between US$ 80- US$ 100 billion by 2026.

5.2 Investments

To keep up with the growing demand, several automakers have started investing heavily in various segments of the industry during the last few months. The industry has attracted Foreign Direct Investment (FDI) worth US$ 22.35 billion during the period April 2000 to June 2019, according to data released by the Department for Promotion of Industry and Internal Trade (DPIIT). The Foreign Direct Investment (FDI) inflows into the Indian automotive industry during the period April 2000–June 2019 were recorded at US$ 22.35 billion, as per data by the Department for Promotion of Industry and Internal Trade (DPIIT). Some of the recent investments made/planned in the Indian auto components sector are as follows:

• Audi India plans to launch nine (all-new models) including Sedans and SUVs along with futuristic e-Tron electric vehicles (EV).

• MG Motor India plans to launch MG ZS EV electric SUV in early 2020 and plans to launch affordable EV in the next 3-4 years.

• BYD-Olectra, Tata Motors and Ashok Leyland to supply 5,500 electric buses for various State Departments.

• Premium motorbike sales in India recorded a seven-fold jump in domestic sales reaching 13,982 units during April-September 2019. The sale of luxury cars stood between 15,000 to 17,000 (in first six months of 2019)

• In 2019, automobile manufacturers invested US$ 501 million in India’s auto-tech companies start-ups, according to Venture intelligence.

• For self-driving and robotic technology start-ups, Toyota plans to invest US$100 million.


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• Ashok Leyland made a capital expenditure of Rs 1,000 crore (US$ 155.20 million) to launch 20-25 new models across various commercial vehicle categories in 2018-19.

• Hyundai is planning to invest US$ 1 billion in India by 2020. SAIC Motor has also announced to invest US$ 310 million in India.

• Mercedes Benz has increased the manufacturing capacity of its Chakan Plant to 20,000 units per year, highest for any luxury car manufacturer in India.

• As of October 2018, Honda Motors Company set up its third factory in India for hybrid and electric vehicles with the cost of Rs 9,200 crore (US$ 1.31 billion), its largest investment in India so far.

• In November 2018, Mahindra Electric Mobility opened its electric technology manufacturing hub in Bangalore with an investment of Rs 100 crore (US$ 14.25 million) which will increase its annual manufacturing capacity to 25,000 units.

• In April 2019, Durr, a German automotive painting and sealing company, entered into a partnership with Patvin to provide automated painting solutions for two or three- wheelers and agricultural machinery for the Indian markets.

• As of January 2019, Lite Auto Components Pvt Ltd, a part of Hindustan Magnesium Products Pvt Ltd plans to invest Rs 500 crore (US$ 69.30 million) to set up Magnesium- based manufacturing plant in Andhra Pradesh.

• Schaeffler India, the Indian arm of Germany’s automotive and industrial parts maker, is planning to invest Rs 300 crore (US$ 46.66 million) per annum over FY18-19.

5.3 Government Initiatives

The Government of India encourages foreign investment in the automobile sector and allows 100 percent FDI under the automatic route. The Government of India’s Automotive Mission Plan (AMP) 2006–2016 has come a long way in ensuring growth for the sector. The Indian Automobile industry is expected to achieve a turnover of $300 billion by the year 2026 and will grow at a rate of CAGR 15 percent from its current revenue of $74 billion. As per the Union Budget 2019-20, the government moved to the GST council to lower the GST rate on electric vehicles from 12 percent to 5 percent. Also, to make electric vehicles more affordable to consumers, the government has decided to provide additional income tax deduction of Rs 1.5 lakh (US$ 2,115) on the interest paid on loans taken to purchase electric vehicles. Some of the recent initiatives taken by the Government of India are -

• Under Union Budget 2019-20, Government announced to provide additional income tax deduction of Rs 1.5 lakh (US$ 2,146) on the interest paid on the loans taken to purchase EVs.

• The Government aims to develop India as a Global Manufacturing Centre and an R&D hub.

• Under NAT RiP (National Automotive Testing and R&D Infrastructure Project), the Government of India has planned to set up R&D Centers at a total cost of US$ 388.5 million to enable the industry to be on par with global standards.

• The Ministry of Heavy Industries, Government of India has shortlisted 11 cities in the country for the introduction of electric vehicles (EVs) in their public transport systems under the FAME [Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles in India] Scheme. The Government of India will also set up Incubation Centers for start- ups working in electric vehicles.

• In February 2019, the Government of India approved the FAME-II scheme with a fund requirement of Rs 10,000 crore (US$ 1.39 billion) for FY20-22.


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6. Auto component and General Engineering Industry in Maharashtra

Maharashtra is in the western region of India and is surrounded by the Arabian Sea in the west, states of Karnataka and Goa in the south, Telangana in the southeast, Chhattisgarh in the east, Gujarat and Madhya Pradesh in the north, and the union territory of Dadra and Nagar Haveli in the northwest. Maharashtra is home to key auto sector industries in the country some of the overarching facts about the auto and general engineering industry in the state are:

• The major automobile centers in the state include Pune, Nashik, Aurangabad,

Mumbai, and Nagpur. • Pune is the largest auto hub of India with over 4,000 manufacturing & ancillary units

in the Pimpri-Chinchwad region alone. • Pune houses the who’s who of the Indian Automobile Industry like Tata Motors,

Mahindra & Mahindra and Bajaj Auto and international auto majors like GM, Volkswagen, Mercedes, etc.

• Nashik has developed as a major component supplying center for both mechanical & electrical parts. It has the needed ecosystem to take-up all the segments – especially defence & railways.

• Aurangabad is a major auto hub after Pune with over 2500+ manufacturing units related to auto and engineering units and is home to auto majors like Skoda, Bajaj Auto, Goodyear tires, Siemens, Crompton Greaves, Varroc Engineering, Endurance technologies, Balkrishna Tyres amongst others.

Figure 8:Automobile Industrial Hubs in Maharashtra

• Aurangabad district has a total of around 82,281 MSME units out of which,

approximately 2500 Micro, Small and Medium enterprises cater to the manufacturing, auto components, plastic, white goods etc.in Aurangabad cluster area.

• Nashik district has a total of around 59,668 MSME units. Out of which, approximately 1800 Micro, small, medium enterprises cater to the manufacturing of defence and general engineering components in the Nashik cluster area.

https://en.wikipedia.org/wiki/Karnataka

https://en.wikipedia.org/wiki/Goa

https://en.wikipedia.org/wiki/Telangana

https://en.wikipedia.org/wiki/Chhattisgarh

https://en.wikipedia.org/wiki/Gujarat

https://en.wikipedia.org/wiki/Madhya_Pradesh

https://en.wikipedia.org/wiki/Dadra_and_Nagar_Haveli

https://en.wikipedia.org/wiki/Dadra_and_Nagar_Haveli


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• Pune district has a total of around 2,26,296 MSME units. Out of which, approximately 4000 Micro, small, medium enterprises cater to the manufacturing of auto components and general engineering in the Pune cluster area. All three clusters are matured and house in all 8300 Engineering, Defence and Auto MSMEs. They are all serving both the engineering and auto sector.

7. Key Stakeholders & Institutional Framework in Aurangabad, Nashik & Pune Cluster

7.1 Government Agencies:

Government Institutions play a vital role and are primarily responsible for promoting the development of the industrial clusters and the growth of MSMEs in the state. These institutions play an important role in influencing policy decisions and are responsible for the execution and implementation of the different central/state schemes. Some of the important government facilitating institutions in the cluster are.

• Maharashtra Industrial Development Corporation (MIDC): Established in 1962, under

the M.I.D. Act 1961, MIDC as the premier industrial infrastructure development agency of Government of Maharashtra. It provides businesses with infrastructures such as land (open plot or built-up spaces), roads, water supply, drainage facilities, and streetlights

• The State Industrial & Investment Corporation of Maharashtra Limited (SICOM): It is a premier industrial development & investment promotion agency dedicated to catalyzing industrial development and development financing in Maharashtra by providing tailor- made financial solutions and advisory services to entrepreneurs, companies in the private and public sector.

• District Industries Center (DIC): It is an executive arm of the Industries Department of Government of Maharashtra and is engaged in the implementation of government policies for all-round development of industries in the state by seeking coordination amongst the state level promotional corporations like MIDC, MSSIDC, KVIB, etc. and other departments of the government related to industries.

• Maharashtra Small Scale Industries Development Corporation Ltd (MSSIDC): MSSIDC was established to give a new orientation and strength to the development of small-scale industries in the State of Maharashtra. The main objective of MSSIDC is to aid, counsel, assist, finance, protect and promote the interests of Small Industries.

• Micro, Small & Medium Enterprises Development Institute (MSME-DI): MSME-DI, Ministry of MSME, Govt. of India, was set up for the promotion and development of Micro, Small Enterprises. This Institute provides support/service to the State Government as well as coordinates various activities at the state level for the promotion and development of MSMEs.

• National Small Industries Corporation (NSIC): NSIC is a Government of India Enterprise under the Ministry of Micro, Small and Medium Enterprises (MSME). NSIC has been working to promote, aid and foster the growth of micro, small and medium enterprises in the country. In addition to this NSIC also provides several services for MSMEs such as Marketing Support to MSME’s; Consortia and Tender Marketing; Single point registration for Government purchases; MSME global mart B2B web portal for MSMEs; Marketing Intelligence; Organizing exhibition and technology Fairs meets among others

7.2 Industry Associations & SPVs:

Apart from government institutions, industry associations are other important stakeholders that play an essential role in the development of different clusters. The associations represent the voice of different MSME units and are responsible for bringing together the players in the ecosystem required for the growth and development of MSMEs. They also play an important role in keeping the members informed about policy and procedural changes. Their role is to


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strengthen the relationship between government and industry and to pursue different economic policies. Some of the important active associations & SPVs in this region are: • Chamber of Marathwada Industries & Agriculture (CMIA): CMIA is an apex body of

industries of the Marathwada region. It represents small, medium, large scale industries, and MNCs. Total membership is well over 700, representing a cross-section of industries. CMIA is involved in several activities like promotion of products and services of local industries, organization of cluster-level buyer-seller meets and industry-academia collaboration among others.

• Marathwada Auto Cluster (MAC): Marathwada Auto Cluster is located in Waluj. It is the CMIA initiated SPV under IIUS Scheme of the Govt. of India that supports around 750 units in automobile cluster through a Common Facility Center and provides services like Rapid Prototyping Facilities; Slitting line and Cut to length line; 3D Scanner, Design Center; Testing & Inspection Facility; Tool Room, Skill Development Facilities, etc.

• Marathwada Association of Small-Scale Industries & Agriculture (MASSIA): MASSIA is the largest association of micro, small, and medium enterprises in the Marathwada region with about 1300 MSME members from Chikalthana, Waluj, Shendra and around Aurangabad peripheral. MASSIA auto cluster covers Chikalthana, Waluj, and Shendra. MASSIA is involved in several activities like promotion of products and services of local industries, organization of cluster-level buyer-seller meets and industry-academia collaboration among others

• Nashik Industries Manufacturing Association (NIMA): NIMA is the largest association of micro, small, and medium enterprises representing around 6000 members across Nashik district and established on 24th January 1971. It is an apex body representing the whole of North Maharashtra.

• Ambad Industries Manufacturing Association (AIMA): AIMA is the second-largest industrial association after NIMA and covers industries in Ambad Industrial area.

• Nashik Engineering Cluster (NEC): NEC is a special purpose vehicle company registered under section 8 formed under the Industrial Infrastructure upgradation scheme (IIUS), Ministry of MSME, Government of India. NEC is catering their services to MSMEs industries related to Defence and general engineering industries.

• Mahratta Chamber of Commerce Industries and Agriculture (MCCIA): MCCIA is one of the few Chambers of Commerce established before independence at a time when industrial activity was yet to take off. MCCIA representing around 3500 members across Pune industries. has been playing a significant role in accelerating the industrial and economic development of the Pune region for more than eight decades now. Main activities of MCCIA is to create skilling manpower and employment opportunities, technology transfer, awareness programme of Government schemes.

• Society of Automotive Manufacturers (SIAM): SIAM is a not for profit apex national body representing all major vehicle and vehicular engine manufactures in India and works towards supporting the sustainable development of the Indian Automobile Industry with the vision that India emerges as the destination of choice in the world for design and manufacture of automobiles.

• Automotive Component Manufacturers Association of India (ACMA): ACMA the apex body representing the interest of the Indian Auto Component Industry. Its membership of over 800 manufacturers contributes more than eighty-five percent of the auto component industry’s turnover in the organized sector. ACMA is an ISO 9001:2015 Certified Association.

• Confederation of Indian Industry (CII): CII is a non-government, not-for-profit, industry- led and industry-managed organization, playing a proactive role in India's development process. Founded in 1895 and celebrating 125 years in 2020, India's premier business association has more than 9100 members, from the private as well as public sectors, including SMEs and MNCs, and an indirect membership of over 300,000 enterprises from 291 national and regional sectoral industry bodies.


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• Auto Cluster Development and Research Institute: It is a facility for providing support to Small & Medium Enterprises. This institute has established Pune as one of the biggest names in playing host to some of the biggest events in the automobile sector. Established under the guardianship of the Industrial Infrastructure Up-gradation Scheme (IIUS) of the Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry, Government of India, Supported by Government of Maharashtra, Pimpri Chinchwad Municipal Corporation with an initiative of Mahratta Chamber of Commerce, Industries and Agriculture (MCCIA).

• Engineering Cluster, Pune: It is an SPV formed under the MSE-CDP scheme of Ministry of MSME, Government of India and catering to their services to general engineering industries in Chinchwad Industrial area.

7.3 Academic & Skilling Institutions:

Numerous academic institutions are contributing significantly to the upskilling of manpower in the region and making candidates industry-ready with a focused training approach. Some of these are listed below • Central Institute of Plastics Engineering & Technology (CIPET), Aurangabad: CIPET

offers specialized training, academic and skill development training programs in the field of polymer science & technology to provide qualified human resources with entrepreneurship qualities for polymer & allied industries.

• Baba Saheb Ambedkar Marathwada University (BAMU): Dr. Baba Saheb Ambedkar Marathwada University formerly known as Marathwada University was established in 1958 to fill the huge lacuna of higher education facilities in western Vidarbha, Marathwada and North Maharashtra region. BAMU conducts training programs in collaboration with government and private institutes.

Nashik has the prevalence of various key academic institutions contributing significantly to the upskilling of manpower in the region and making candidates industry-ready. There are around 35 diploma/degree colleges and over 5000 students pass out from them every year. Pune, which is also known as Education Hub is housing academic institutions providing a range of courses from diploma to PhDs. There are overall 55+ Engineering, diploma & degree colleges that are affiliated to the University of Pune and the overall strength of yearly pass out students is around 11000. Pune has many nationally accepted autonomous institutes like the College of Engineering Pune (COEP), Vishwakarma Institute of Technology (VIT), Bharati Vidyapeeth Pune, Military College of Engineering, etc.

7.4 Financial Institutions:

The financial needs of MSMEs are taken care of by several financial institutions in the region, which are State Industrial & Investment Corporation of Maharashtra (SICOM), Bank of Maharashtra, SIDBI, State Bank of India and HDFC. These institutions provide financial support to MSMEs. This financial support in many cases is aligned with Govt’s policies and schemes for financial assistance to MSMEs. Most of the units are financed through the term and working capital loan from banks and equity contributions from entrepreneurs. Some of the key Financial Institution catering to the institutions are: • The State Industrial & Investment Corporation of Maharashtra Limited (SICOM):

SICOM is a premier financial institution dedicated to catalyzing development in the Industry, Services and Infrastructure sectors in India by providing tailor-made financial solutions and advisory services to entrepreneurs, companies in the private and public sector and Government bodies.

• Maharashtra State Financial Corporation (MSFC): MSFC is the term lending development financial institution run by the state government. It provides finance to small and medium scale enterprises.


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• Small Industries Development Bank of India (SIDBI): SIDBI is a development financial institution that provides refinance facilities and short term lending to industries and serves as the principal financial institution in the Micro, Small and Medium Enterprises (MSME) sector in Aurangabad

• Bank of Maharashtra (BoM): BOM is the lead bank of Aurangabad district and facilitates its services to Industries in terms of the loan, bank guarantee, etc.

7.5 Major OEMs:

The presence of many OEMs has helped in the development of industrial clusters in Maharashtra. Some of the major OEMs that have contributed in the development are Bajaj Auto, Siemens, Crompton Greaves, Varroc, Endurance, Endress Hauser, Garware Industries, Perkins, Sterlite Technology, Dhoot Transmission, Aurangabad Electrical, Man Diesel, NRB Bearing and Grind Master Similarly, major contributors to the development of the Nashik cluster are HAL, VIP, Bosch, Siemens, Kirloskar Oil Engines, CEAT, Crompton, Glaxo, Mahindra, and Mahindra. Pune cluster being famous for automobile manufacturing has the presence of all the major OEMs like Bajaj, Tata Motors, Chrysler, Volkswagen, and Piaggio. These industries have a significant role in the development of MSME in the Pune region.

7.6 Raw Material Suppliers:

The majority of job work in these clusters is routed to the firms through several anchor steel and aluminum units. These units not only provide the raw material for machining purposes but also provide plant operations and maintenance related job work to different ancillary units. Some of the major raw materials suppliers are listed below: • Alloy Steel – Bohler Uddeholm India Ltd., • Bohler High Performance, Ravi Steels co. • Tool & Die steel – Ellora Ispat, Paras Industries Corporation • Pins (core) – Pawan International, • CP Precision works • MS, SS, Alloy, etc.- Tata steel • Aluminum - NALCO • Polymer- Garvare polyester • Electric wire and cables- Finolex

8. Overview of the Clusters

IGTR is currently playing a crucial role in translating the Ministry of MSMEs' vision of technologically empowered MSMEs into a reality by providing skilled manpower, and technological support on the ground. IGTRs geographical advantage owing to the prevalence of Bajaj Auto, Varroc, Endurance, Mahindra, Siemens, etc makes it imperative for IGTR to drive change.

To increase IGTRs outreach and improve the linkages between IGTR and MSMEs, the following regions were identified for shortlisting the scope of this cluster diagnostic: S.No. Major areas of interest for Aurangabad TC

1 Automotive and General Engineering Cluster, Aurangabad 2 Electronics Cluster, Aurangabad 3 Marathwada Auto Cluster, Aurangabad 4 Steel furniture Cluster, Aurangabad 5 Defence and General Engineering Cluster, Nashik 6 Nashik Engineering Cluster, Nashik 7 Engineering Cluster, Pune


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8 Auto and General Engineering Cluster, Pune

Table 4: Major areas of interest for Aurangabad TC

Amongst the eight mentioned clusters that form the major areas of interest for Aurangabad TC, three clusters have been selected for the scope of this cluster diagnostic based on various parameters like industrial-strength, proximity to the TC, ability to strike linkages, nature of industrial associations, past cluster development activities, viability of the cluster, social & environmental considerations, etc.

The three clusters shortlisted to be the part of this cluster diagnostic study are: 1. Auto and General Engineering Cluster, Aurangabad 2. Defence and General Engineering Cluster, Nashik 3. Auto and General Engineering Cluster, Pune

8.1 Auto and General Engineering Cluster, Aurangabad

Aurangabad has around 2,500+ MSME units 1catering to sectors like automotive, auto components, white goods/appliances, plastic components, etc. Apart from auto component manufacturing, other major industries in the region are electrical, pharmaceutical, auto repairing, auto servicing, textile, and agro-based.

The cluster comprises both the small and medium industries manufacturing automobile parts for various big industries like Bajaj Auto, Crompton Greaves, Grind Master, Siemens, Goodyear, and Garware polyester. The industries in the cluster essentially manufacture sub- components for the OEM’s and Tier 1 & Tier 2 suppliers. The MSMEs in the cluster majorly produce auto components like engine parts, transmission parts, die press parts, molds, jigs & fixtures, gearbox parts, fabrication parts, and mudguards. Auto Industries in Aurangabad are broadly classified as: • Auto OEMs: They are the major contributors to industrial growth and prosperity in the

region. The major players include industries like Bajaj Auto, Skoda, Varroc, Endurance, Siemens, Endress, Man Diesel, CAN PACK, etc.

• Auto Component Manufacturers: These are tier I and tier II manufacturers of auto components. The major players include Rucha technology, Sanjeev auto, Yeshshree group, Grind master, Marathwada Auto Components, Greaves Cotton, Lombardini, Forbes and NRB bearing.

8.1.1 Understanding of Aurangabad cluster

TCM team had a detailed interaction with MSMEs and the representatives from industrial associations for conducting the diagnostic study of the cluster. This survey helped the team in understanding the cluster facts, MSME operations and the requirement of different players like suppliers, buyers, and employees in the value chain. Some of the key observations that were recorded from our interactions on the ground are highlighted in table 5.

Parameter Observations

Number of MSMEs in different investment brackets

Number of MSMEs (%) criteria as per investment on plant and machinery2: No. of Micro Industries (Less than 25 Lakhs): 85% No. of small Industries (25 lakhs-05 Cr.): 12% No. of Medium Industries (05-10 Cr.): 2.5% No. of Large Industries (More than 10 Cr.): 0.5%

1 Based on discussion with CMIA, Aurangabad 2 Reference: https://udyogaadhaar.gov.in/UA/Reports/DistrictBasedReport_R3.aspx , Based on the data on types of units in Aurangabad for MSME classification

https://udyogaadhaar.gov.in/UA/Reports/DistrictBasedReport_R3.aspx


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Parameter Observations

Employee Strength

Most of the MSMEs employ traditional manual processes for manufacturing. The employee range in most of the MSMEs varies from 30 to 100 employees. Most of the MSMEs in the cluster employ more than 50 employees including both regular and contract-based employees.

Domain

MSMEs in the region are involved in the domain of auto component manufacturing, general engineering, and stamping auto components. Some enterprises are also involved in the domain of white good manufacturing, fabrication and foundry practices.

Source of Capital The source of capital for most of the MSMEs is banks however there are some of MSMEs that are self-financed.

Available Machinery

Most of the units have a complete set of machinery required to produce auto components. The installed setup includes machines like a 3 axis milling machine, wire cut EDM, lathe, drill, CNC, hydraulic press, etc.

Rejection Rate

Most of the MSMEs in the cluster are the vendors of OEMs like Bajaj Auto and participate in the vendor development program organized by them. GMP (Good Manufacturing Practises) & related controls are effectively employed by these OEMs. Hence, the rejection rates are below 2-3% for the suppliers of these OEMs. However, the rejection and reworking rates amongst the casting- based manufacturers are between 7-10%.

ISO/ Quality standards MSMEs currently supplying to OEMs and Tier 1 suppliers are ISO 9001 certified.

Skill Development

MSMEs in the cluster lack a skilled workforce however they are aware of the need for skill development and upskilling. Upskilling is required majorly in quality assurance procedure, latest manufacturing processes under Industry 4.0 and cost control procedures.

Mode of recruitment

MSMEs in the cluster recruit workforce primarily based on the local references, Only a few medium enterprises sometimes go to online job portals for recruitment.

Vendor base Most of the large suppliers have more than five vendors registered with them for doing the job work.

Table 5: Aurangabad Cluster Understanding

8.1.2 Aurangabad Cluster: SWOT Analysis

Strengths Weaknesses • Raw materials and suitable machinery for

executing job work are easily available for the auto and auto component industry in Aurangabad.

• Aurangabad cluster has a presence of major auto sector OEMs like Bajaj auto which makes the vendors thriving in the region sustainable.

• The industrial infrastructure like land, water, and electricity is well maintained making the cluster inclusive and adaptive for easy business.

• There is very little focus on research and technology as very few R&D facilities prevail inside the cluster. Also, the technological upgradation initiatives are lagging and most of the firms are using primitive technologies.

• With the cluster growing around the job works being offered by a few OEMs there’s a cut-throat competition amongst each other for bagging the orders.

• Availing skilled manpower is like a treasure in the cluster. The cluster also


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• A CFC named ‘Marathwada Auto Cluster’

is already in place in the Aurangabad cluster. The CFC is providing immense production support to the MSMEs in the region and helping them garner job work. The CFC is a collaborative venture between the state government, central government, and the MSME associations.

• The industrial support system in Aurangabad is immense with the presence of support institutions like DIC, MSME-DI, Directorate of Industries, NSIC and other educational institutions like BAMU, MGM, etc.

lacks credible institutes to source skilled manpower.

• The MSMEs in the cluster lack credible linkages with industrial, academic and other support institutions outside the cluster. There is no authentic knowledge sharing mechanism that exists at the cluster level.

• The level of collaboration and outreach activities amongst the cluster stakeholders is very low.

• The quality control measures being adopted by SMEs in the Aurangabad cluster are dismal.

Opportunities Threats • With more and more OEMs moving

towards the approach of vendor-based manufacturing, there’s immense scope for the Aurangabad cluster to diversify and grow.

• Vendor-based manufacturing will lead to job creation and business development in the cluster.

• The government of India’s strong commitment towards the indigenization of EV production can provide a great opportunity for the MSMEs in the region to grow.

• With major OEMs diversifying inside the cluster there’s a huge opportunity to serve as a tier-1 and tier-2 vendor for an OEM.

• With increasing globalization and per capita income there’s a growing demand for auto and auto components in the domestic and international market. Aurangabad cluster being an auto heavy cluster has an opportunity to grow manifold amid consumption spike.

• With BS-VI and Electric vehicles making rounds in the automobile industry, there’s a lot of scope for the MSMEs in the Aurangabad cluster to diversify their product portfolio. With the new defence procurement policy coming in and the requirement of offsets in defence production for OEMs, there’s a huge opportunity for MSMEs in exploring the defence production space.

• With low production cost nations like China, Taiwan, and Thailand pitching in with aggressive production strategies, it becomes difficult for MSMEs in the Aurangabad cluster to cope up.

• There has been speculation that the auto majors in the cluster might go for global outsourcing for precision components.

• With new technologies like fuel cell and alternate energy powered vehicles coming in, the MSMEs in the cluster might bear the burnt.

• Some of the MSMEs in the cluster have idle manufacturing capacity which can render them unviable in the market.

Table 6: Aurangabad Cluster: SWOT Analysis


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8.1.3 Aurangabad Cluster Needs Assessment – Key Issues and Challenges

The focus of the cluster diagnostic report is to identify the major challenges impacting the auto and general engineering cluster, Aurangabad. As mentioned in the methodology, to translate this focus into reality, our team conducted one to one discussions and interactions with major stakeholders including MSMEs, technical experts, industry associations and financial institutions. Based on the interactions we’ve tried to project the issues being faced by the industrial units in the cluster. The challenges which have been identified in the cluster have been mapped with the potential TC offerings which have helped us to draft the potential areas of improvement that will foster a collaborative relationship between the TCs and the industrial units. The following table provides challenges in the cluster which have been mapped with the cluster service offerings:

Aurangabad Cluster Challenges

Description of the challenges TC offering that can mitigate cluster challenges

Current TC Service Offerings – Cluster Applicability

The emergence of new technologies

• The Automotive component manufacturing industry is undergoing a period of massive disruption and transformation. A gradual shift from carbon- based fuels to alternative energy is posing a serious problem to the OEMs.

• It is expected that this level of uncertainty in the OEMs will be trickled down to all the tiers of the supply chain in the cluster.

Partially

• TC, Aurangabad has an additive manufacturing facility for:

o The design & development of auto components.

o Upgradation from BS stage IV to BS stage VI.

• TC’s infrastructure and training skillsets need to be upgraded to meet the requirement of the alternative fuel-based product portfolio.

Limited access to new markets

• Most of the MSMEs in the cluster have limited exposure to new markets and end up being dependent on Aurangabad based OEMs like Bajaj Auto.

• MSMEs in the cluster have

inadequate outreach mechanisms in place. The contact of these MSMEs with government PSUs and major OEMs in the nation is meager.

Partially

• IGTR Aurangabad in association with NSIC and MSME-DI is currently organizing workshops, and buyer-seller meets across Maharashtra.

• There is a scarcity of skilled operators across the MSME space in the Aurangabad cluster.

• Most of the essential skill training like CNC machine

• IGTR is currently offering courses on CNC operations and maintenance.


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Unskilled workforce

programming & operation, automation, mechatronics, machine tool & welding operations are not readily available.

• The up-skilling facilities in the cluster aren’t competent to tackle the rapidly changing skilled manpower requirement posed by the change in technology from carbon-based fuel to alternative fuel-based systems.

• Up-skilling required to gain the skill set necessary to solve the challenges posed by new domains like electric vehicle service, charging station maintenance, IoT, Battery management systems, etc is not available in the cluster.

• There are a few support

institutions that offer upskilling courses for EV & IoT, but these support institutions lack industrial connect, field exposure and case study based orientation.

Partially

Changing Market needs

• The cluster is excessively focussed on auto sector production and has blind-sided itself from new market segments that relate to defence component production.

• A lot of sectoral experts have foreseen that the market in the automobile manufacturing sector will change drastically within the next five to ten years with the emergence of new technologies in the sector.

• There has been no interest amongst the cluster MSMEs to expand their horizon beyond the national markets. Some overseas players are looking for quality supplies.

No

• TC is currently working in

the defence sector by serving Hindustan Aeronautical Limited (HAL) for their precision tooling requirements and has an inbuilt capability to develop such high precision components. However, at present, the TC isn’t anchoring the cluster MSMEs in harnessing the defence component production space.


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Lack of Institutional Credit

• MSMEs in the cluster have very limited information on the offerings being provided by the financial institutions.

• Several units are facing a massive credit crunch and have no sustainable source of income.

No

• Aurangabad TC is carrying out workshops and seminars however no seminar has been conducted on financial awareness by bringing financial institutions like local banks on board.

No aggregator to bring MSME on a common platform

There is a lack of a common platform that brings all the MSMEs with similar interests and different strengths on a common platform. An institutional aggregator that could pool in the strength of all the MSMEs to deliver high precision job works is absent.

No

Table 7 Aurangabad Cluster: Key Issues & Challenges

8.2 Defence, General engineering and Electrical Cluster, Nashik

Nashik is one of the established major auto, engineering and electrical hubs in India. It is the 3rd largest engineering cum auto hub in the state of Maharashtra after Pune and Aurangabad. The other sectors prevalent in Nashik are Pharma, Food, General engineering, and chemicals.

There are two major industrial areas in and around the Nashik municipal area namely Satpur and Ambad. The district of Nashik is known for the following clusters: Dindori (Food Park), Sinnar, Malegaon, Vinchur, Peth and Igatpuri. There are some cooperative estates in NICE, Malegaon, Manmad, Sinnar, Yeola, Pimpalgaon, Kalwqan and Ozar.

Nashik can be perceived as the golden triangle of Maharashtra connecting two major industrial hubs of Mumbai and Pune. There are an estimated 8395 MSME units (all segments put together) and 178 large units in the Nashik region as of 2018. Over 120,000 are employed in these units with over 80,000 in MSME units alone. Nashik is bestowed with best growth drivers including – good connectivity, high livability quotient, tourism potential, an existing industrial hub, several horticultural products, and well-organized educational institutions. Its location on the Delhi – Mumbai industrial corridor (DMIC) and Western dedicated Freight Corridor (WDFC) and Igatpuri- Nashik – Sinnar Investment region adds to the potential for growth of this region. It already accounts for 6.7% of the manufacturing output of Maharashtra.

With the changes in the auto market, the companies are shifting their focus to Defence items. The industry associations of AIMA and NIMA are taking up additional onus of setting up a Defence Innovation Centre. The level of commitment in Nashik industrial associations can be manifested from the fact that to diversify to other product groups and market/export linkages, they have taken an initiative for setting up a permanent product display center. However, there are certain areas in which the associations are seeking support from Aurangabad TC like:

• Skill development • Training of the operators • Design support in tooling


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8.2.1 Understanding of Nashik cluster

TCM team had a detailed interaction with MSMEs and the representatives from industrial associations for conducting the diagnostic study of the cluster. This survey helped the team in understanding the cluster facts, MSME operations and the requirement of different players like suppliers, buyers, and employees in the value chain. Some of the key observations that were recorded from our interactions on the ground are highlighted in table 8.

Parameter Survey Observations about MSMEs Number of MSMEs in different investment brackets

Based on MSMEs criteria as per Investment on plant & machinery3: No. of Micro Industries (Less than 25 lakhs): 81 % No. of small Industries (25 lakhs-05 Cr.): 16 % No. of Medium Industries (05-10 Cr.): 2.50 % No. of Large Industries (More than 10 Cr.): 0.5 %

Employee Strength Most of the MSMEs use a manual process for manufacturing. The number of employees working in an enterprise in the Nashik cluster varies from 30 to 100 including both the regular and contract-based employees. The total employment in the MSME sector as per DI stood at 301,005 for 2014-15.

Domain There are around 10,000 units prevalent in the Nashik district, spread across six major sectors i.e. defense, chemicals, pharma, general engineering, electrical and food processing. There are over 2000 units engaged in the production of engineering and auto components,700 units engaged in the production electrical items (motors, switch gears, light fittings, cables), 300 in machinery manufacturing(compressors, automation, machine tools, and hydraulics), 30 units in agricultural machinery and around 200 units in plastic components (FRP, mouldings, packaging). MSMEs in the cluster are involved in precision manufacturing for defence and general engineering sectors, manufacturing products like fuel systems for HAL, engine transmission precision components for Mahindra & Mahindra and electrical contractor for Siemens. The cluster units have developed mostly on the lines of process- based manufacturing and hence the units have less dependence on one type of product. Development based on process has given inbuilt flexibility to quickly diversify the product range.

Source of Capital The source of capital for most of the MSMEs is banks however some MSMEs are self-financed. The total investment in MSMEs for the Nashik cluster is estimated to be around Rs 5917 Crores based on 2014-15 data from DI.

Rejection Rate The majority of MSMEs in the cluster are surviving on their supplies to major OEMs. Given the fact that all the major OEMs have strict quality check procedures in place, the Majority of

3 https://udyogaadhaar.gov.in/UA/Reports/DistrictBasedReport_R3.aspx , Based on the data on types of units in Aurangabad for MSME classification



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Parameter Survey Observations about MSMEs

MSMEs have adapted to the quality checks and the rejection rate is close to 2-2.5%.

ISO/ Quality standards MSMEs currently supplying to OEMs and Tier 1 suppliers are ISO 9001 certified.

Skill Development The cluster craves skilled manpower. Every MSME that we visited highlighted the need for skill upgradation of their existing workers. MSMEs in the region need an adaptation framework for their existing workforce to adapt to changing technologies and processes. A lot of technical capabilities required to cope up with the changing industrial needs were missing in the workforce.

Mode of recruitment MSMEs in the cluster recruit workforce primarily based on the local references, Only a few medium enterprises sometimes go to online job portals for recruitment.

Vendor base Most of the large suppliers have less than equal to three vendors registered with them for doing the job work.

Table 8: Nashik Cluster Understanding

8.2.2 Nashik Cluster: SWOT Analysis

Strengths Weaknesses • Nashik is a fully developed cluster with

around 3500+ MSMEs. Most of these MSMEs have a good production facility.

• The cluster has a good human resource ecosystem in place with four (4) major engineering colleges, four (4) MBA colleges and around 7,000 annual pass outs from these colleges.

• The industrial infrastructure in the region supports industrial growth and development. There is an adequate supply of power and water in the cluster.

• The industrial associations representing the cluster are dynamic and are aware of the cluster needs and challenges. These associations represent the cluster very well and try their level best to ensure that the challenges being faced by the cluster are resolved quickly e.g. Nashik industrial manufacturers association is trying to establish a defence innovation hub (DIH) that would provide manufacturing and training support for 127 indigenous items for the industries in the cluster.

• A flourished cluster like Nashik becomes a bottleneck for budding entrepreneurs to enter, because of high electricity & water tariff by MIDC and a very high land cost.

• The cluster lacks adequate facilities for prototyping complex tool designs and there is a limited focus on R&D.

• There are negligible upskilling facilities like IGTR for the workforce in the cluster.

Opportunities Threats • With central and state governments

increasing focus on providing incubation support to budding entrepreneurs, the Nashik cluster can set up an incubation center to foster innovation.

• The domestic defence sector production with the introduction of the offset requirement for OEMs is going to increase exponentially. If SMEs in the cluster don’t take the first movers’


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• The setting up of a Defence Innovation

Hub (DIH) and similar setups can help a lot of young entrepreneurs to enter defence sector production.

• There is an immense opportunity for human resource development setups to execute technical training programmes in the Nashik engineering cluster. This can lead to massive business generation for the setups and upskilling of the workforce in the cluster at the same time.

advantage, they might end up losing considerable business.

• The migration of skilled workforce to nearby clusters for attaining upward mobility is a growing threat that the Nashik engineering cluster is witnessing.

• Overlapping jurisdictions between MIDC and NMC create issues in coordination and infrastructure maintenance.

• The emergence of new technologies and a gradual shift of major OEMs to new technologies is forcing vendors out of the business. E.g. the recent sudden closure of Crompton has thrown 300 vendors out of the business either partially or fully.

Table 9: Nashik Cluster SWOT Analysis

8.2.3 Nashik Issues and Challenges

Nashik Cluster Challenge

Description of the Cluster Challenge

TC offering that can mitigate cluster challenges


Dependency on a Single OEM

• The MSMEs in the Nashik cluster have this tendency of over- relying on a single OEM. With the recent closure of Crompton Greaves, more than 300 vendors have lost their job works. Such an over-reliance affects the security of these enterprises and their future as most of the payments of these vendors associated with Crompton are still pending.

No

Emergence of New Technology

• The evolution of electronic vehicles in the backdrop of clean environment and climate change talks coupled with legislative reforms like moving from BS-IV to BS-VI has hit the auto sector job works immensely. The challenge is a daunting one for the Nashik cluster as more

Partially

• As far as the issue related to the changes brought in by the move from BS-IV to BS- VI is concerned, Aurangabad TC has an additive manufacturing facility for the design & development of auto components in BS-VI norms.


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than 50% of the enterprises in the cluster produce auto components.

Unskilled workforce

• Re-skilling in the field of advanced manufacturing processes like CNC- VMC programming, automation, etc is not being addressed by the existing training institutes.

• Up-skilling needs in the field of electric vehicles and quality assurance for the new products, processes, and technologies are not being addressed by any prevailing institutions.

• The units and associations upon our visit had a common complaint that the pass outs from the diploma and degree colleges lack practical knowledge and a minimum required hand on experience. They think that a Finishing school (like IGTR) is needed.

Partially

• Some of the courses being offered by Aurangabad TC can meet the upskilling needs of the cluster.

• However, the TC must introduce courses related to up-skilling required in Electric Vehicle and IoT domains.

Changing market needs

• With the recent slump on the auto sector and evolution of new fields EV and BS-VI, it would take a minimum of 5 to 10 years for the auto markets to stabilize.

• Other clusters in the country are opening up to newer market segments like defence components production.

No

• Aurangabad TC is currently working in the defence sector by serving Hindustan Aeronautical Limited (HAL) by manufacturing their precision tools and has an inbuilt capability to develop such high precision components. TC can guide MSMEs on the technological requirements of the defense sector.


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No aggregator to bring MSMEs on a common platform

• Industries in Nashik are keen to follow a collaborative approach for product diversification and enter the defence sector but they lack the technical guidance for achieving the manufacturing expertise required for the Defence sector.

• There is the absence of an aggregator like IGTR which can help in uplifting the MSME’s technical skillset for serving the defence sector.

No

Product and Service Management

• SME’s in this region deliver sector-specific products and services. Due to smaller installation and limited resources, they face a challenge to properly manage these orders.

No

Table 10: Nashik Cluster: Key Issues and Challenges

8.3 Auto and General Engineering Cluster, Pune

Pune is a highly evolved industrial cluster for automotive and engineering items. It is one of the top centers for auto and engineering items in India – the others being Gurgaon, Jamshedpur, Chennai/ Hosur, and Pitampura. Pune covers around 30% of vehicle production (all types put together). There are 5 major clusters in and around Pune and they are Pimpri- Chinchwad, Ranjangaon, Chakan, Jejuri, and Baramati. Though the clusters cover a range of processes, machining items are concentrated in the Pimpri-Chinchwad area. By way of its composition and structure, Pune is a unique cluster having all components /standard parts and processes needed for the auto and engineering sectors. It is one of the major centers in India that can launch a full-fledged automobile or machinery from its facilities, the other two being Chennai and NCR. Pune cluster has all the constituents of the auto/engineering supply chain like:

1. Dominant Auto manufacturers 2. Tier I & tier-II automobile rated vendors, supporting ancillaries 3. Facilities for all processes– casting, forging, sheet metal work, welding, machining,

plastic molding, tooling, assembly, testing


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4. All major segments of the auto industry: engine parts, transmission, suspension, electrical, chassis parts are covered within the cluster.

Figure 8: Self-sustaining capability of Pune cluster

Figure 9: Structure of automobile manufacturing in Pune

The cluster has a mix of public, private, proprietary and partnership firms. Both international and Indian brands are represented in the cluster. The cluster has an ideal product mix of 2- wheeler, 3-wheeler, 4-wheeler, LCV, and HCV products and components, despite this they are having a rough sail since EVs are gaining preference over diesel /petrol vehicles.

A detailed understanding of the Pune cluster is given in the following section:

Enginneerin g Services

units, mostly MSMEs

Auto component

manufactures Tier 1 /2/ 3 suppliers

Automobile manufacturers - two , three and four wheelers

Indian and foreign brands

Testing and certifyng

instituitions

Associations

Component suppliers including standard

items

Automobile manufacturers

Technical instituitions

Raw material suppliers

Financial instituions


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8.3.1 Pune Cluster Understanding

Parameter Observations Number of MSMEs in different investment brackets

Number of MSMEs (%) criteria as per investment on plant and machinery4

No. of Micro Industries (Less than 25 lakhs): 84 % No. of small Industries (25 lakhs-05 Cr.): 14 % No. of Medium Industries (05-10 Cr.): 1.50 % No. of Large Industries (more than 10 Cr.): 0.5 %

Employee Strength

Around 60% of the units in the Pune cluster have less than 30 workers while around 20% of units have workers between 30 to 100 and the remaining 20% units have more than 100 workers.

Domain MSMEs in the region are involved in casting, forging, sheet metal work, welding, machining, plastic molding, tooling, assembly, and testing.

Source of Capital

With our observations from the ground, we found that around 60% of the companies depend upon banking finance, around 20% are self- financed and the remaining 20% depend on micro-financial institutions like pathpeti.

Rejection Rate

Most of the MSMEs in the Pune cluster are the suppliers to OEMs and are subject to standard good manufacturing practices being employed by the OEMs. The overall rejection rate for the cluster remains below 2% owing to the GMPs.

ISO/ Quality standards

Most of the MSMEs in the cluster follow the OEM prescribed manufacturing/quality control procedures.

Skill Development

Pune cluster has two sets of employees, One’s who have just entered the job market and lack hands-on experience, others with a profound set of experience behind their back. These existing sets of workers are adequately skilled in operating conventional machines.

Table 11: Understanding of Pune Cluster

8.3.2 Pune Cluster: SWOT Analysis

Strengths Weaknesses • Pune is a mature industrial cluster with a

great product mix like a different type of vehicle part manufacturing facility.

• The existing facilities are flexible, and new products can be easily organized and produced.

• Skilled manpower at all levels is available in the cluster.

• The cluster is already linked to the global supply chain.

• MSMEs being the vendors to OEMs directly or through the tiered suppliers, are quality certified and have an inbuilt system for quality control.

• Pune cluster has a well-equipped common facility center, located in Bosari.

• Though many support institutions are available they have served only the major vehicle manufacturers. There is a huge gap while catering to the needs of MSMEs.

• Pune isn’t a port city; hence the export products need to be carried out via road to Mumbai port.

• MSMEs are distributed over a very large area and are in different geographical locations, logistics within the industrial areas range from 30 to 50 km. Catering to the needs of such a vast geographical industrial area is a tedious task.

4 https://udyogaadhaar.gov.in/UA/Reports/DistrictBasedReport_R3.aspx , Based on the data on types of units in Aurangabad for MSME classification



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Opportunities Threats • With the available machinery, there’s a lot

of potentials for the Pune cluster to diversify and dig deeper into the realms of defence production.

• With the new technologies making their way into the market, the auto cluster has an excellent opportunity of grabbing the business of developing the entire infrastructure including charging stations for EV.

• There is a huge opportunity to train the auto industry to get aligned with the needs of the EV.

• The changing market needs provide an opportunity for the Pune cluster to bolster their R&D.

• Policy level changes have hinted at an era of EVs. The cluster might face threat from cheap Chinese products in the EV sector and by the time the cluster MSMEs adapt, they might end up becoming a second line supplier of products and services.

• An inward competition amongst the sectors in Pune’s economy can lead to a shortage of manpower. There are a few other sectors in Pune like real estate, IT, etc which tend to pay more wages than the manufacturing sector. Better pay might attract the skilled workforce to these sectors.

Table 12: SWOT analysis of Pune Cluster

8.3.3 Pune Cluster: Key Issues and Challenges

Pune Cluster Challenges


TC offering, that can mitigate cluster challenge


Emergence of new technologies

• There is immense potential in the Pune cluster to cater to the needs of emerging technologies like EV as it has a huge presence of major Auto and Auto component manufacturers. However, EV being a new technology has opened the floodgate of competition amongst OEMs. The OEMs are getting competitive and aren’t ready to showcase their requirements and product portfolio to MSMEs.

No

Unskilled workforce

• Pune cluster needs skilled manpower to meet the requirement of the auto industry, but the existing institutional setup does not complement the need for the creation of skilled manpower.

• Lack of skill development facilities in cluster units especially in emerging technologies like EV, IoT and Industry 4.0.

No


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Pune Cluster Challenges


TC offering, that can mitigate cluster challenge


Changing market needs

• Legislative reforms have forced the cluster units to change their set up to comply with the change in emission norms from BS- IV to BS-VI.

• With the introduction of offset requirements in the defence procurement policy, most of the industrial clusters are making a shift towards domestic defence production.

No

Table 13: Key Issues and challenges of Pune Cluster

9. Recommendations

This diagnostic study was conducted for Aurangabad TC to understand the challenges being faced by the three prioritized clusters of Aurangabad, Nashik, and Pune. This section focusses on the common as well as some cluster-specific recommendations that the Aurangabad TC should work upon going forward.

9.1 Skill development and training facility:

The unskilled workforce has been one of the major cluster level challenges that has been witnessed across the three clusters irrespective of the domain these clusters have been working in. Based on the interactions with the cluster level stakeholders it has been found that there is a massive need for capacity building workshops in specific technical domains like defence indigenization, internet of Things (IoT) & related infrastructure. TCM recommends certain new training programs that can help Aurangabad TC inculcate standards, quality assessment, value addition and knowledge base amongst MSMEs existing in the cluster. A list of training programs that can be conceptualized to mark the beginning of skill transformation journey by Aurangabad TC at Aurangabad and by establishing extension centers at Pune & Nashik are given as follows:

Sr. No.

Title of the Training Program Duration Pre-Requisite Applicable Clusters

1. Auto, defence and precision component manufacturing: Quality Control and Inspection procedures for defence, aero and specialized precision components manufacturing.

3 weeks • Engineering in mechanical /instrumentation having at least 3 years of experience on shop floor Quality Control.

• The precision component manufacturing sector


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Sr. No.


2. Advanced tool design and tool making

3 months • PG diploma holders, engineers with a minimum of three years of industrial experience.

• Design and production department in the cluster units.

3. Design for additive manufacturing and 3D printing

3 months • Engineering qualified or PG diploma holders with experience in the design department for a minimum of 3 years.

• Design departments of the units in the cluster.

4. Welding inspection, Quality control, and testing program

2 weeks • Certified welders, diploma in welding with 1- year of experience in welding

• Manufacturing

5. BS-VI emission norms and adherence procedures.

1 week • One year diploma in auto supply chain

• Auto sales and service personnel, auto component and tool manufacturing

6. Customized training program for e-marketing and export procedures

2 weeks • Marketing professionals and unit heads

• All production and export units

7. Low-cost Factory automation

8 weeks • Engineering mechanical /instrumentation or a shop floor production experience of a minimum of 2 years.

• Production and service units in the cluster

8. Robotics 8 weeks • Engineering mechanical /instrumentation or a shop floor production experience of a minimum of 2 years.


9. Computer-integrated manufacturing (CIM)

8 weeks • Engineering mechanical /instrumentation or a shop floor



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Sr. No.


production experience of a minimum of 2 years.

10. EV–charging techniques, equipment, and maintenance

1 month • 2 years’ experience in auto component production /servicing

• Auto and component sector units in the cluster

11. Orientation to hybrid vehicle maintenance

1 month • Diploma /ITI preferably with 2 years’ experience

• All three clusters

12. Cost control and cost reduction methods

3 weeks • 1-year experience in process planning, costing, quotation areas

• All production units in the cluster

Table 14: New Training Programs for Aurangabad, Nashik & Pune

Some of the courses that IGTR should start imparting training on with utmost importance given the changes in technology and market needs are as follows:

9.1.1 Electric Vehicle (EV) and hybrid vehicles

Considering the continuous changes that are taking place in the auto sector, re-skilling and up-skilling are required for the existing personnel and the new entrants respectively. For this purpose, comprehensive EV courses, covering technology, components, production process, testing, and servicing should be introduced. The EV course shall cover the battery technology, different charging methods, details of the charging station and how to maintain the EVs. The TC should have a full-fledged working model of an EV and the charging station to give practical orientation and training to the operatives. Considering that the EV market will take a gradual take-off especially in the rural areas, the training facility should also cover a practical orientation to hybrid vehicles. The exposure to hybrid vehicles is also relevant as the auto manufacturers are now seriously considering indigenizing the hybrid version. This introduction will give the necessary infrastructure for all the five technologies that would be in vogue in the coming decade, namely petrol, diesel, CNG, Hybrid and EV. The recent need to shift to BS-VI norms for emission, from the current BS-IV norms would also need the auto sector to align their parts and their quality norms. The operatives must also be trained on the same.

9.1.2 Industry 4.0

The industry must get ready with Industry 4.0 norms and practices to keep its share intact within the global supply chain. Industry 4.0 is gaining immense popularity within the industrial arena. The courses should be structured in a way that they cover the technology involved, usage techniques and the benefits to MSMEs in day to day operations. The necessary labs


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like automation, IoT, Computer-integrated manufacturing (CIM), Robotics should be established to fulfill this recommendation.

9.1.3 Internet of Things (IoT)

The internet of things (IoT) is a system of creating interrelated mechanical, computing devices and digital machines. These computing devices are provided with unique identifiers and they can transfer data over network preferably on the cloud without any human, machine or computer interaction. The IoT training should be oriented towards exposure to the software. An exclusive lab with cloud computing should be established to make the training practical and useful. The courses should focus on the areas that are easily adaptable in the MSME environment. Apart from introducing these new courses in the Technology center, the technology center needs to prioritize the training courses, from the list of training courses brought out in the training gap assessment report as well. These courses shall be introduced over the next one- year period.

9.1.4 Courses related to existing technologies Clusters under the purview of this DSR have maximum MSMEs working in the field of General Engineering, Manufacturing, Automobile, Auto Component, Defence and other industries dealing with the processing of ferrous materials hence the process advancement in existing fields becomes the common need of the cluster. Considering the gap in awareness regarding the re-skilling of manpower to cater to the advancement in the existing processes, some courses that are required are additive manufacturing, advanced tool design, welding quality control, etc. as tabulated above.

9.2 Improvements in Production Facility

9.2.1 Process-oriented Improvements • At present, most of the units primarily cater to one sector either auto or engineering

or some other sector. The units should make a conscious effort to cover three or more segments (defence, aerospace, domestic appliances, etc) individually using the existing product, process, and techniques.

• The enterprises should focus more on replacement and spare market rather than focussing excessively on supply through OEMs and tiered suppliers.

• The cluster units should try to reduce the input (raw material) costs by resorting to the formation of a Common Procurement Facility with similar cluster units.

• Representatives from all the three - cluster units, TC and the cluster associations - should interact and identify rough job preparation (before finishing) from sectors and sub-sectors not directly affected by the current slump e.g. infrastructure sector needing mechanical parts.

• TC should offer facilities for product design, simulation, tool trials, testing, and prototype making with their latest facilities like CMM, 3-D scanning, 1000T mechanical presses, 200 T die press and the 1000T die casting machine.

• It is suggested that an open facilitation counter in the cluster association should be established to support the cluster units to take up newer products, sizes, processes and help them with smaller batch prototypes, design simulation trials and samples for the approval of potential buyers.

• TC should become an aggregator and conduct workshops on methodologies of implementing process improvements for MSME at a nominal cost.


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9.2.2 Quality-oriented Improvements • There’s a need to gradually establish, in the cluster units, all the quality assurance

procedures for the product or service. This can be implemented by introducing suitable procedures so that they are accepted in the global supply chain as a quality supplier.

• All the facilities in the cluster units need some major rework so that each unit can develop a core competence for one or more processes and operations. The reworking may involve small and minor infrastructural additions, which can be handled by the unit itself.

• TC should start an outreach mechanism in the cluster to increase awareness regarding quality improvements and service portfolios. This can be utilized to reduce the rejection rates prevailing in the clusters.

9.2.3 Efficiency oriented Improvements

• TC in collaboration with associations should carry out energy audits to optimize the operational costs of MSMEs.

• TC should extend support to the cluster units through professional services so that the units can work on cost reduction exercises by MSMEs.

• TC should facilitate the formation of a common procurement plan for their use i.e. raw materials, consumables and other inputs like paints and varnishes. This can give additional margins at the same sales level.

• There’s a need to train the units on cost control and reduction processes. This training can be conducted by pooling up the resources of industrial associations and the TC. Training at MSME premises can be conducted with actual field case studies to make MSMEs understand easily and facilitate quick adaption.

9.3 Other Recommendations for the Cluster

9.3.1 Marketing related recommendations • Aurangabad TC should make use of and disseminate knowledge on e-marketing

techniques to link itself and other MSMEs with the global supply chain and increase market outreach.

• It should organize the buyer-seller meets and link the units to a similar product and process users.

• It should assist each cluster to consolidate their strength as a brand by focussing exclusively on its strength.

• Aurangabad TC needs to adopt a professional approach for production jobs, there should be a sales team that works dedicatedly on outreach activities inside the cluster, lead generation, and conversions. The team should also take up end-to-end order management, co-ordination of material delivery, coordination at customer end for training and tool development, creating a database of the market players and ensure active participation in the vendor development programs. This sales team should target to bridge the gap of production, marketing, planning and should aggressively ensure outreach in the market for TC services.

• Nashik and Pune cluster MSMEs are comparatively less aware of the services being provided by IGTR Aurangabad. Hence, Aurangabad TC should organize visits of associations, manufacturers, OEM’s tool room experts from Nashik & Pune for open discussion regarding the processes being implemented by TC. This activity should be targeted as a knowledge transfer across the sector. This will increase the awareness about cutting edge services being offered by the TC.

• The EV market India needs a minimum of 30 GMWH of batteries for the upcoming EV market by 2030. These estimates are expected to go up to 60 MGH by 2030. The cluster associations should focus on getting large units established at a capacity of a minimum of 10 GMWH in Aurangabad, Pune, Nasik, and Mumbai. This step can bring in an investment of up to $ 1 billion per 10 GMWH.


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9.3.2 Formation of Consortium at Cluster level • The three manufacturing sub-sectors – auto, defence, and aerospace- need a

variety of ancillaries, tools, and component suppliers, to take care of their growing demand. The natural extension for auto and auto component manufacturers lies in the defence/ aerospace sectors. While the opportunities in the auto sector are getting limited owing to the overall downturn in the sector, the possibilities in the defence and aerospace sector are increasing where demand is more than the supply.

• To further strengthen the MSMEs to meet the demand - for these large, precision and high-quality markets there is a need for several initiatives to strengthen their technical expertise and market readiness. One such major initiative can be to form a consortium of firms so that they can pool in their resources under the common platform offered by the Technology Centres (TCs), for meeting with the needs of large volume order execution.

• Aurangabad TC had earlier initiated efforts to form a ‘Precision Tooling Consortium’ in Aurangabad, Pune & Nashik and had approached around 150 + members for this subject. As an outcome TC got a formal response from 15-16 MSMEs to be part of ‘Precision Tooling Consortium’ but due to the meltdown of the automobile sector in recent times, this consortium does not materialize on the legal part. There is an immense need to bring this precision tooling consortium into reality.

• Considering the opportunities in defence sector, TCM had initiated activities to form a defence consortium wherein TC would work as an aggregator to increase the trust among MSMEs to enter defence sector. TCM had initiated the outreach activity in Aurangabad and around 6-7 MSMEs conveyed interest to be part of defence consortium. TC should take this forward by conducting outreach camps in Nashik & Pune clusters in collaboration with industrial associations.

• The defence consortium can be backed up with extensive training programs targeted to make MSMEs defence production-ready which will bolster the TCs training portfolio.

• The cluster needs methods to pool in their resources either by forming a consortium and/or making common marketing platform to:

1. Achieve cost reduction in the short run. 2. Ensure timely supplies in the global market. 3. Achieve the utilization of resources. 4. Develop a brand name in the global market.

9.3.3 Fostering Entrepreneurship and Innovation

• New graduates and post-graduates from technical institutes & colleges and a good number of existing personnel in the industry have a keen focus on developing new products and process improvement in general. The thirst for entrepreneurship and innovation amongst these people is immense. The TC should start addressing the curiosity of these minds by organizing technology challenges, quizzes and by setting up an incubation lab. Available support by the central and state governments should be effectively communicated to the target audience by the TC.

9.3.4 Establishing a Finishing school at cluster level • The TC should work in cooperation with academic institutions to offer practical

training and orientation. Training content can be targeted to uplift the technical skills, personality development & soft skills required in the industry. This is to ensure that the pass outs are industry-ready through this finishing school program.

• The TC should also tie-up with OEMs, Tier I & Tier II vendors & suppliers for customized three to six-month training for their fresh recruits after finishing the university curriculum. These recruits can be trained at TC or the industry premises to upskill the manpower as per the required standards in the industry.


CONFIDENTIAL Page 42

10. Annexures

10.1 Annexure I: List of Stakeholders Contacted

10.1.1 List of Stakeholders Contacted – Auto and General Engineering Cluster, Aurangabad

S. No. MSME/

Association

Name MSME/Association visited

Contact Person Name

Designation

1. Association /

MSME

Chamber of Marathwada Industries and Agriculture

Mr. Prasad Kokil

Member / Owner

2.

Association / MSME

Marathwada Association of small- scale Industries and Agriculture

Mr. Dnyandeo. L. Rajale

President

3.

Association / MSME


Mr. Abhay G. Hanchanal

Vice President

4.

Association / MSME


Mr. Manish R. Agrawal

Hon. Secretary

5. MSME Madhura Die Cast Pvt. Ltd.

Mr. Arjun B. Gaikwad Owner

6.

SPV

Tiny General Engineering & Allied Industries Cluster

Mr. Santosh Kulkarni

Chairman

7. SPV Marathwada Auto Cluster

Mr. Rajendra Mutkhedkar CEO

8. SPV Devgiri Electronic Cluster

Mr. Suresh Todkar Director

9. MSME Deksons Casting Ltd. Mr. Vikram Dekate Owner

10. MSME Tool-Tech Tooling, Waluj Industrial area

Mr. Sunil Kirdak Owner

11. MSME Pranshu Electricals Mr. Vivek Hambarde Owner

12. MSME Cast 4 Aluminium Mr. Ruturaj S. Thorat MD

13. MSME Rucha Technologies Mr. Umesh Dashrathi Owner

14. MSME Yeshshree Press Components Pvt. Ltd.

Mr. Milind Kank Owner

Table 15: List of stakeholders contacted- Auto and General Engineering cluster, Aurangabad


Draft Version 5 Page 43

10.1.2 List of Stakeholders Contacted – Defence and General Engineering Cluster, Nashik

Sr. No.

MSME/ Association

Name MSME/Association visited

Contact Person Name Designation

1.

Association

Nashik Industries & Manufacturers' Association (NIMA)

Mr. Tushar Chavan

Director

2.

Association Nashik Ambad Industries & Manufacturer's Association (AIMA)

MR. VARUN TALWAR

Vice President

3.

Association

Maharashtra Chamber of Commerce, Industry & Agriculture (MACCIA)

Mr. Chandrakant Dixit

President

4.

SPV

Nashik Engineering Cluster

Mr. Abhijit Charne

Assistant General Manager

5. MSME NSK Engineers Mr. Nilesh Jajoo Partner

6. MSME Tetra Engineers Mr. T Sain Director 7. MSME Auto shell Electromech Mr. Deepak Thakare Director

8.

MSME

Alf Engineers Pvt Ltd

Mr. Sunil Ahire HR Mr. Ramesh Nair HR Mr. Koshy Ninan MD

HR MD

9. MSME Bunts Tools Pvt Ltd. Mr. Satish Yadav Mr. Santosh Shetty Director

10. MSME Toshira Design Mr. Rajesh Jadhav Director

11. MSME Mungi Engineers Pvt Ltd Mr. Pradip Bhole Mr. Tushar Amrutkar MANAGER

12. MSME Nirmiti Precision Pvt Ltd. Pragati Udyog

Mr. Sujit Pekhale Mr. Kiran Sant

MANAGER

13. MSME M. D. Industries Mr. J B Mirchandani MANAGER

14. MSME Haldex India Mr. Prasanna Helge Mr. Harshal Pande Plant Head

15.

MSME

Amber Forge (P). LTD Amber Auto Engineering Pvt Ltd

Mr. Atul Asole

Marketing

Table 16: List of Stakeholders Contacted – Defense and General Engineering Cluster, Nashik



10.1.3 List of Stakeholders Contacted – Auto and Engineering Cluster, Pune

Sr. No.

MSME/ Association

Name MSME/Association visited Contact Person Name Designation

1.

Association

MCCIA (Mahratta Chamber of Commerce Industries & Agriculture) & Praditi Pressparts Pvt Ltd.

Mr. Deepak Karandikar

Vice President & Owner

2.

Association

MCCIA (Mahratta Chamber of Commerce Industries & Agriculture)

Mr. Prashant Jogalekar

Director

3.

Association

ACMA (Auto component manufacturers association of India)

Mr. K. Chandrasekhar

National Program Coordinator

4.

Association


Mr. Girish Govinde

Head supply chain engagement

5.

Association


Mr. Yashpal Singh Riat

Counselor

6.

Association CII (Confederation of Indian

Industry)

Mr. Roshan Kumar

Deputy Director & Head

7. MSME Pusalkar Engineers Mr. Gajajnan Biranje Plant In charge

8. MSME Samarth Engineering Services Mr. Pradeep Pathak Director

9. MSME Indo schottle auto parts Pvt ltd Mr. Ashok Joshi AGM

10. MSME Fortune Engineering Mr. Santosh Mhaske Proprietor

11. MSME Jayashree Polymers Pvt Ltd Ms. Shital Rajbhoj Assistant Manager

12. MSME E Gearz Pvt Ltd Mr. Ramesh Gondal Manager

Table 17:Stakeholders Contacted – Auto and Engineering Cluster, Pune


10.2 Annexure-II: Recommendations Matrix

Matrix Long Medium- & short-term priorities of TC, MSME, and associations

TC MSME Association Short Term

• Train MSMEs on cost control /reduction processes

• Offering prototype services to MSMEs

to get vendor approval at OEMs. • Organize buyer-seller meets for auto

components for local and exports • Identify new opportunities for “rough

machining” from sectors other than auto and get it offloaded to MSMEs.

• Based on the area of expertise focus on diversifying the market segments to at least cover there more segments other than auto like Defence, railways, infrastructure, aerospace, domestic appliances for a similar product, process.

• Focus more on replacement and spares markets than supply through OEMs and tiered suppliers.

• Reduce the input (raw material) costs by resorting to a common procurement Facility

• Carry out energy audits to optimize operational costs

• Make use of e-marketing techniques to link up to global supply chains.

• Offer professional services to work on cost reduction exercises.

• Conduct energy audits and reduce the cost of the inputs

• Facilitate the formation of a common procurement Facility

• Interact with financial institutions, banks to offer short term additional credit on stocks, WIP and capital goods.

• Create an “e-marketing facility center” for MSMEs to facilitate links with overseas supply chains.

Medium Term

• Give support for innovation, entrepreneurship by courses and by giving handholding support in TC itself through a plug and play facilities.

• Start a third vertical (other than production and training) in the TC on consultancy and services coving the areas of innovation, entrepreneurship, support for consortium coordination, offering Plug and play facilities, industry 4.0 lab and Market promotion (including linkages with academic institutions and other cross-cutting opportunities).

• Conduct regular programs on quality control and assurance to MSMEs

• Get exposed to low-cost automation and the related benefits and implement them based on the process, time taken and the resultant benefit of automation.

• Send operators for skill up-gradation,

through the courses conducted by both TC and the association.

• Work in close co-operation with the TC in conducting the training programs and skilling initiatives. This is to be done by sharing the existing resources. The TC will focus on training delivery and the associations shall focus on mustering trainees form industry and supporting in the premises in the cluster.


Technology Cluster Manager: TCSP Cluster Diagnostic Report – TC Visakhapatnam


• Conduct regular upskilling programs relating to EV e.g. Charging stations, use of high-power batteries, charging techniques. Offer training in the maintenance of hybrid vehicles.

• Training programs on (a) Process automation (b) robotics (c) CIM and (d) Autotronic through their labs.

• Offer facilities for product design, simulation, tool trials, testing, and prototype making with their latest facilities like CMM. 3 D scanning. 1000T mechanical presses, 200 T die press and the 1000T die casting machine and 3Dprinters.

• It is suggested that to open a facilitation counter in the cluster association, CFCs.

Long Term

• Offer courses on advanced tool design and tool-making to the cluster units engaged in tool making and supply

• Introduce a scheme to develop

entrepreneurs through hand-holding and guidance- through the recommended third vertical under the TC.

• Rework the facilities so that the units can develop a “core competence” for one or more processes, operations.

• Gradually introduce and establish all

quality assurance procedures for the product or service offered, by introducing suitable procedures, and records. With this intervention within the unit, they will get an easy entry into global supply chains.

• Develop each cluster as a brand. • The EV market India needs a minimum of 30

GMWH of batteries for the upcoming EV market by 2030. These estimates are expected to go up to 60 MGH by 2030. The cluster associations should focus on getting large units established at a capacity of a minimum of 10 GMWH in Aurangabad, Pune, Nasik, and Mumbai. This step can bring in an investment of up to $ 1 billion per 10 GMWH.



10.3 Annexure III: Cluster Prioritization Matrix

Sr. No

Cluster

Characteristics (sectors/subsectors, type of enterprises, relevant for TC services)

Number of Enterprises

No of Associations, Name of Main /Active Association

Presence of Engineering, Technical Skill Development institutions, BDS Providers

Other support Institutions

Previous cluster development intervention (Name of the agency and Year)

Common Facility Centre / SPV if any

Relevance for TC services

Existing Linkages with TC

Geographical Proximity

TC's qualitative Feedback

1

Aurangabad Auto component and Engineering Cluster including Waluj, Chikalthana, Shendra, Jalna industrial areas

Auto OEMs, Auto components, plastic component, consumer electronics, dies and molds, tool room and steel- related companies.

Around 2000- 2500 MSMEs, presence of large Automobile 2 &3 wheelers such as Bajaj Auto plant at Waluj, Canpack, Endress Hauser, Endurance, Varroc, MAN Diesel, Perkins, Siemens, Skoda Auto, Sterlite optical technologies, Wipro lighting, etc.

Industry associations like Chamber of Marathwada Industries and Agriculture (CMIA), Marathwada Association of Small-Scale Industries and Agriculture (MASSIA), Waluj Industries Association

20-25 Engineering college, 10- 15 skill development academy related to local Industrial need

DIC, MSME -DI, Joint Director of Industries (JDI), National Small Industries Corporation (NSIC), Maharashtra Centre for Entrepreneurship Development (MCED), Central Institute of plastic engineering and technology (CIEPT), Maharashtra Small Scale Industries Development Corporation (MSSIDC), Maharashtra Industrial Development Corporation (MIDC)

Marathwada Auto Cluster, Waluj implemented under the MIIUS scheme of DIPP, Ministry of Commerce and Industry. MASSIA Auto Component Cluster under MSE-CDP scheme Ministry, Chikalthana Tiny Engineering Cluster, Chikalthana

Out of total MSME related to the auto and engineering sector, around 1300-1500 nos. related to TC services

Moderate

All clusters are within 50 Km radius from Aurangabad TC

Selected for Prioritization

2

Nashik Auto and Defence Cluster Including Ambad, Satpur, Sinnar industrial areas

Engineering, manufacturing, aerospace, automobile Industry

About 500-600 MSMEs, Presence of biggest government organization like Hindustan Aeronautical Limited (HAL), Thermal power plant at Eklahra near Nashik road and private sector like

Nashik Industries and Manufacturers Association (NIMA)

Around 15- 20 engineering college and 10-15 skill development academy related to local industrial need

DIC, MSME -DI, Joint Director of Industries (JDI), National Small Industries Corporation (NSIC), Maharashtra Centre for Entrepreneurship Development (MCED), Maharashtra Small Scale Industries Development

Nashik Engineering Cluster, MIDC Ambad under MIIUS scheme of DIPP, Ministry of Commerce and Industry.

Out of total MSME related to the auto and engineering sector, around 300- 500 nos. related to TC services

Weak

Nashik’s industries are 180-200 Km from Aurangabad TC




Sr. No

Cluster












Mahindra 4- wheeler, MICO (BOSCH), ABB, Crompton limited, Siemens, Kirloskar Oil, Gabriel,

Corporation (MSSIDC), Maharashtra Industrial Development Corporation (MIDC)

3

Pune Auto and Engineering Cluster including industrial areas like Pimpri Chinchwad, Chakan, Ranjangaon, Bhosari, etc.

Manufacturing of Automobile and Auto components (Engine parts, drive transmission and steering parts, body and Chassis parts, suspension & braking parts, electrical parts, etc.), machine tools, precision machine shop, electronics products

About 3000- 3500 MSMEs, Presence of large OEMs like TATA Automotive and locomotive, Bajaj Auto, Force Motors, Premier limited, Daimler limited, CEAT limited, John Deere India, Volkswagen India, AMW, Philips India, Kirloskar, Bosch Chassis system, Brakes India Limited, Bharat Forge Limited, Sona Koyo steering system limited, Amtek Auto limited, Cummins, Alfa level, Mahindra & Mahindra, Marcedes Benz India ltd, SKF Bearing, etc.

Mahratta Chamber of Commerce, Industries and Agriculture (MCCIA)

Around 70- 80 Engineering college. Premier colleges like MIT, COEP, VIT, PICT, BVP, etc.

DIC, MSME -DI, Joint Director of Industries (JDI), National Small Industries Corporation (NSIC), Maharashtra Centre for Entrepreneurship Development (MCED), Maharashtra Small Scale Industries Development Corporation (MSSIDC), Maharashtra Industrial development corporation (MIDC), Automotive Research Association of India (ARAI), Indian Machine Tool Manufacturers Association, (IMTMA)

Auto Cluster Development and Research Institute (ACDRI), Chinchwad under MIIUS scheme of DIPP, Ministry of Commerce and Industry, Engineering Cluster, MIDC Chinchwad, Pune under MSE-CDP scheme of Ministry of MSME. SC-ST Engineering Cluster, Bhosari under process Maharashtra Ex- serviceman Corporation (MESCO), MIDC Bhosari

Around 50- 60% of auto components, tool making MSME units are related to TC services

Moderate

Around 250- 270 Km from Aurangabad TC




Sr. No

Cluster












Ahmednagar Manufacturing of About 300-350 Association of Around 10- DIC, MSME -DI, Auto & Around 130- Auto, fabricated metal MSMEs, Ahmednagar 15 Joint Director of Engineering 150 Km Engineering products, Presence of Manufacturing engineering Industries (JDI), Cluster under from and electrical & biggest EPC Industries college and National Small progress, Aurangabad electrical electronics company like (AAMI), 5-10 skill Industries Soft TC Cluster machinery, and L&T and Ahmednagar development Corporation intervention

equipment. electrical Auto and academy (NSIC), completed.

products mfg. a Engineering related to Maharashtra About 450

company like Association local Centre for functional

Crompton (AAEA) industrial Entrepreneurship units in this

4 Greaves need. Development cluster Weak

limited, (MCED), related to

BIKSONS Maharashtra Small auto

Forge (India) Scale Industries components

Ltd., KSB Development and light

Pumps- Corporation engineering

Rahuri, Kinetic (MSSIDC), products

Engineering Maharashtra

Ltd. Industrial

development

corporation (MIDC)

Jalgaon Engineering and Around 50 nos. Jalgaon DIC, MSME -DI, Sai Around 20- Around 160- Engineering electrical units micro and Industries Joint Director of Engineering 30 units are 170 Km and (mostly traders’ small units Association Industries (JDI), Cluster, related to TC from Electrical category) related to (JIA) National Small Jalgaon services Aurangabad Cluster in engineering Industries (Around 20 TC Jalgaon and Corporation units are

MIDC only manufacturing (NSIC), related to

5 of machinery and

Maharashtra Small Scale Industries

Automobile, electrical

Weak

equipment. Development and allied

6 nos. Medium Corporation products)

and 4 nos. (MSSIDC),

large units in Maharashtra

Jalgaon district Industrial

development

corporation (MIDC)

Kolhapur Ferrous casting Around 150- Kolhapur There are Institute of Indian Kolhapur Around 450 foundry and and foundry for 170 Engineering various Foundrymen (IIF)- Foundry and -470 Km Engineering the automotive foundry/casting Association training and Rajarampuri, Engineering from

6 cluster sector to producing

MSME units. Major

(KEA), Shivaji Udyamnagar

academic institutes

Kolhapur. DIC, MSME -DI,

Cluster under IIUS scheme Weak Aurangabad

TC cylinder heads, foundries like Gokul that support Joint Director of of DIPP under

clutch housing, Shriram Shirgaon the foundry Industries (JDI), Ministry of

covers, gears, foundry, Industry industry National Small



Sr. No

Cluster





Other Institutions

support


Common Facility Centre SPV if any

/





etc., and a Shriram Manufacturers either Industries Commerce A few of the larger foundry, Association directly or Corporation and Industry and highly Ghadge Patil, (GOSHIMA) indirectly. (NSIC),

mechanized units Menon and and Shiroli In addition to Maharashtra

are also Menon, Saroj Manufacturers the Centre for

producing engine Iron, Sound Association of government Entrepreneurship

castings such as Casting, Kolhapur polytechnic Development

blocks and Caspro metal, (SMAK), and ITI, (MCED),

heads. Marvelous there are 2– Maharashtra Small

Around 42% of metals, Yash 3 private ITIs Scale Industries

foundry products Metallics and six Development

are related to Mantri private Corporation

automobile/oil Metallics, engineering (MSSIDC),

sector Jadhav colleges of Maharashtra

Industries which DY Industrial

Patil is one development

of the corporation

largest. (MIDC), MSME

Testing Lab,

Government

Polytechnic,

Kolhapur

10.4 Annexure-IV: Map of Industrial Areas in Aurangabad Cluster.



10.5 Annexure V: Map of Industrial Areas in Nashik Cluster.



10.6 Annexure VI: Map of Industrial Areas in Pune Cluster.



For further information, please connect with:

Vivek Agarwal Partner– Infrastructure, Government and Healthcare (IGH) KPMG in India T: +91 98117 05760 E: [email protected]

Punita Bansal Associate Director – Infrastructure, Government and Healthcare (IGH) KPMG in India T: +91 99100 09401 E: [email protected]

mailto:[email protected]

mailto:[email protected]

cluster diagnostic report igtr aurangabad

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