Cluster-Model to boost MSME Growth

[vc_row][vc_column][vc_column_text]To increase the bandwidth of Micro, small and medium enterprises (MSMEs) and make their future stable and sustainable, cluster approach can be a solution, say experts. Sector specific clusters can be developed in areas where certain industries are dominant.

Peenya Industrial Area, South-East Asia’s largest extension and Bengaluru which has been a base for several large defence organisations is an ideal place for a defence cluster to be nurtured, to give one example. MSME clusters catering to defence can benefit both client organisations as well as the small scale units. There are many small scale units catering to Aerospace and Defence in Peenya Industrial Area.

According to experts, the current time and context is perfect to develop indigenous technologies and small scale units have a key contribution to make. With centralised facilities, small scale units operating in clusters can achieve economies of scale and can ensure healthy order book. Many defence organisations are making efforts to ensure MSMEs in the defence segment are nurtured and facilitated. These units are an integral part of the indigenisation that the country can achieve in the defence technologies.

For a large defence organization or a PSU in need of a sub-assembly, units that are good with components, machining, welding can offer it a combined solution in the cluster model.
The future is fraught with excellent opportunities for MSMEs who embrace the cluster model. Some defence companies aim to develop all missile systems in the next five years and stop importing systems and start exporting to other nations in a decade from now. In this context, small scale units in Peenya have opportunities to contribute in areas like avionics, tele-command systems, air frames, rocket motors and other components. Defence PSUs can integrate and collaborate with MSMEs in developing advanced and critical defence technologies.

While defence research organisations can use their strengths in research, MSMEs can take up the manufacturing task. With skill development initiatives in the aerospace and defence, small scale units will gain a lot.[/vc_column_text][/vc_column][/vc_row]

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