Mumbai: Provider of global business information, Dun & Bradstreet says in a forthcoming series on SME clusters in India that three sectors, pharmaceuticals, textiles and chemicals will lead the growth of the SME sector in Mumbai
The series will cover six geographical clusters - Mumbai, Pune, Chennai, Hyderabad, Gurgaon and Kolkata. These geographical areas have proven effective in incubating industrial clusters, thus allowing SMEs to flourish there-in. The cluster approach has proved efficient in terms of gaining credit facility, risk sharing, policy and institutional development and technical & marketing assistance. Globally, as well as in India, SMEs have used the cluster based approach to garner support through collective bargaining power, governmental policy, regulatory and institutional reforms, capacity building and initiatives for supporting efficient SME financing and business development services. It was in consonance with this philosophy that D&B has launched this publication series.
''''Driven by the knowledge, skills, low costs, improved quality and demand, the pharmaceutical, textile and chemical sectors have witnessed tremendous growth over the past few years,'''' said Dr Manoj Vaish, president and CEO – India, Dun & Bradstreet, releasing the of the series, Emerging SMEs: Mumbai 2007 last week .
Vaish added, ''''The government had envisioned increasing India''s share in the global textile market from the current 3 per cent to 10 per cent by the end of 2015. The Indian pharmaceutical industry, whose products are exported to more than 200 countries, has been growing at 9 per cent annually. The Indian chemical industry, one of the oldest sectors in the country, accounts for about 14 per cent of the total exports and 9 per cent of total imports of the country. The contribution of the SMEs to these three sectors, especially by adopting the cluster model, is well recognised.''''
Over the last decade, Mumbai has proved to be a viable option for setting up of SMEs in terms of infrastructure, financing and technology. Emerging SMEs: Mumbai 2007 focuses on SMEs whose manufacturing units are situated in Mumbai and nearby areas. The publication covers three prominent sectors in terms of number of units and employment - Chemicals, Pharmaceuticals and Textiles.
A total of 300 companies (turnover Rs.40 million – 1000 million), 100 from each sector, have been covered and profiled in the publication. The publication also includes the cluster insights that have been collated from the responses highlighting their various activities and the cluster related benefits and hindrances.
- Private limited companies formed the dominant category in all the three sectors accounting for 50 per cent of the textile sector; 69 per cent from the chemical sector and 63 per cent from the pharmaceutical industry.
- Organic chemical manufacturing was the most popular product category in the chemical sector with around 34 per cent of the companies involved in organic chemicals segment.
- In the pharmaceutical sector, 68 per cent of the profiled companies are involved in the allopathic medicines segment while in the case of textiles, 73 per cent of the sampled companies were engaged in cotton and cotton related products segment.
- A majority of the companies profiled were pursuing or interested in deploying various growth strategies in the near future. Likewise, with respect to future growth plans, 82 per cent of the chemical companies envisaged strategies for future growth with 31 per cent interested in capacity expansion.70 per cent of the companies from the pharmaceutical segment and 76 per cent from textile sector have future expansion plans.
- In terms of the benefits derived from being part of a cluster, quality up gradation, manpower training and technology availability were the top three elements for all three sectors combined.
- In terms of quality up gradation, 44 per cent of the chemical companies, 25 per cent of the pharmaceutical
companies and 44 per cent of the textile companies claim to have benefited from being in a cluster.
(See: Emerging SMEs Mumbai 2007)