Development of Knitwear SMEs of Ludhiana

By J.N.Vohra M.Tech, B.Text, F.I.E, C (Eng.), M.I.M.A

Adviser- Knitwear Club, Ludhiana Ex. Technical Coordinator cum General Manager

Knitwear Facility, Ludhiana (A UNDP Aided Project)

Cluster Approach-A Case Study

Contents of this presentation

Ludhiana The Hosiery Cluster

Initial Surveys to assess technology status and Skill Gaps of the cluster (vis--vis European Standards)

Setting Up a Special Vehicle

The Mission & the execution to achieve Goals

Technology Transfer and Skills Development

Lessons Learnt

Ludhiana The Hosiery Cluster

The Cluster Map

Hosiery

Knitwear

Shawls &

Stoles

Yarns

Dyeing

Accessories

Processes Machinery

Skilled

Human

Resource End

Product for

Domestic

Market

End

Product for

Exports

The Technology

Initial Surveys to Assess Technology Status and Skills Gaps

(In mid 1970s)

Cluster Survey Done by International Wool Secretariat (IWS)-the Wool Mark People

Followed by

A survey done by UNDP experts

Above agencies felt there is need to demonstrate state-of-the-art technology to local entrepreneurs and Skills development to operate the same

Skill Status of a typical Exporting Unit

Skills Requirement

Setting Up a Special Vehicle

Government of Punjab Set Up

Punjab State Hosiery & Knitwear Development Corporation

The Corporation established a UNDP Supported project-Knitwear Facility-in Ludhiana

The objective of the project was

To demonstrate to the local entrepreneurs machinery

& processes (technology) and Skill Manpower so that

quality of their product improves to achieve

consistently European Quality Standards

The Execution to Achieve Goals Punjab Government Provided Land, Buildings & Utility

Infrastructure

UNDP provided State-of the-Art machinery, tools & tackles and foreign experts to train local manpower to handle updated technology

UNDP Experts also trained technical staff of the project and also deputed project personnel to foreign R & D Institutions to give them latest technology exposures

Running costs were met through Governmental funding, and some income generation through project activities

Project Activities Included

Providing technical assistance to the industry for

adopting the processes and skilling their manpower

Providing testing facilities to select raw-materials and

establishing product quality

Providing them consultancy to set up modern units

Lectures & Seminars were conducted

The Technologies Demonstrated

Latest systems of yarn spinning

Computer Aided and Fully Fashioned Knitting

Use of Special Purpose Machines for the Making up Knitwear

Use of Solvent Scouring Plant for the Finishing of Knitwear

Use of better quality yarns, knit structures and fashion

contents to produce superior products

Energy saving systems for processes

The Technologies Demonstrated

Were Leapfrogging

Were open to industry to see and adopt and the project had no Intellectual property right on the same

Disclosures for processes established were made without any compensation

Processes developed at the project were not patented and everybody was free to adopt

Leapfrogging Change

Computerised Knitting Hand Flat Knitting

Leapfrogging Change

Stitching with Linking Machine Stitching with Conventional Machines

Leapfrogging Change

Disorganized Operations Organised Operations

Leapfrogging Change

Disorganized System Organised System

Project Uptech of SBI for Financial Support to SMEs

When the Industry was ready to adopt newer technologies STATE BANK OF INDIA Launched Project Uptech Scheme for Modernisation of Hosiery Cluster of Ludhiana Concessional rate of Interests

Enhanced Moratorium for repayment

Reduced Margins on Loans

The Change

Exports in 1980 to Hard Currency Areas

Rs.80 Crore Only

Exports in 1995 to Hard Currency Areas

Rs. 800 Crore

At present Ludhiana Produces hosiery worth Rs.12,000 Crore

Exports are Rs.2200 Crore

The UNDP Project was wound up in 1995

Lessons Learnt

Small firms acquire state-of-the-art technology only when circumstances compel them and going become tough for them.at that time financial assistance is necessary

During boom period (when everything they produce is selling) they assume the myth that they are the know-all experts and would belittle the advise of the professionals.at that time they should be made to realize changes taking place elsewhere

Tech transfer does not come about quickly, even in the best of the circumstances, it requires large doses of preparation, experience, and availing the opportunity

The transfer of latest technology to industry offers local private machine builders valuable knowledge, expertise, and R&D effort which they might otherwise not be able to afford.

Small firms, in general, depend more on informal learning.

Proximity is perhaps the most potent means of enabling the informal linkages that are so valuable.

Trade and professional associations are among the oldest and most effective formal mechanisms for technology transfer.

It can be said

Technology transfer and skills development is like gardening:

No one can produce a rose on hard crusted land, but a good gardener can produce a better one by tilling the soil well, selecting the right seeds, getting the bugs out, and doing the right kind of fertilization, watering, and pruning.

Thank You