Escolar Documentos
Profissional Documentos
Cultura Documentos
of SSI
on
Agricultural Implements Industry
at
Karnal (Haryana)
(May 2005)
Prepared by:
Raj Kumar Arora, Asstt. Director (Mech.) &
Cluster Development Executive
Small Industries Service Institute
Ministry of SSI, Govt. of India
11-A, IDC, KUNJ PURA ROAD
KARNAL-132001 (HARYANA)
PH: 0184-2231862, 2230882, 2230910
e-mail: sisiknl@sancharnet.in, rka_nathana@yahoo.com
Website:www.sisiharyana.org
INDEX
S.
No.
Description Page
Executive Summary i to ii
1.
STATUS & IMPORTANCE OF CLUSTERS IN SSI
SECTOR
1
2.
AGRICULTURAL IMPLEMENTS
MANUFACTURING IN SSI SECTOR
4
3.
DESCRIPTION OF THE CLUSTER
6
4.
THE KARNAL AGRICULTURAL IMPLEMENTS
CLUSTER
10
5.
CLUSTER ACTORS
24
6.
LINKAGES AMONG CLUSTER ACTORS
35
7.
CURRENT INSTITUTIONAL MATRIX
36
8.
VALUE CHAIN ANALYSIS
37
9.
ANALYSIS OF BUSINESS OPERATION
43
10.
REALITY TREE DIAGRAMMES
54
11.
INDUSTRY STRUCTURE ANALYSIS
58
12.
SWOT ANALYSIS
61
13.
PRESENT CLUSTER MAP
65
14.
CLUSTER VISION
66
15.
PROPOSED PROGRAMMES / ACTIVITIES
67
16.
TECHNOLOGICAL INTERVENTIONS
69
17.
FUTURE CLUSTER MAP
73
18.
ACTION PLAN / Budget -- YEAR 200506
74
i
EXECUTIVE SUMMARY
Agriculture sector affects every aspect of economy of the country. It nearly
contributes 32 % of national income. Use of implements and machinery plays vital
role in increasing the productivity of agricultural output.
The report in hand has tried to identify the areas for improvement in the working of
Agricultural Implements Manufacturing Industry at Karnal (Haryana) to enable it to
produce good quality, standardized and cost effective implements of latest design
to suit newer techniques of farming.
The report is based on information and data collected from SMEs in the cluster,
related industries associations, Govt. departments and institutions working in the
area of agriculture research, development & extension education.
There are around 70 working SMEs in Karnal Agricultural Implements cluster.
Besides there are 25 to 30 units in nearby towns within 20 to 25 km radius.
These units produce implements like Cultivators, Disc Harrows, Shrub Masters,
Land Levellers, Bund Formers, Seed cum- Fertilizer Drills, Zero Tillage Machines,
Straw Reapers & Thrashers etc.
Some units manufacture some of the important components of implements such as
Harrow / Plough Disc, Cultivator Tynes, Cultivator Spring, Shovel. Some Casting
units are also there at Karnal.
Present annual Turn over of Karnal Cluster is around Rs.198 crore. Cluster
provides direct employment to more than 1000 persons. This turn over of Karnal
cluster is 18% of the Gross output of Agricultural implement manufacturing segment
in SSI sector.
The main manufacturing operations performed are press work, fabrication,
welding, machining, forging, metal forming, heat treatment etc. The working style of
SMEs in the cluster is almost traditional and family run business type. Modern
management techniques are not popular.
ii
Despite the presence of many R & D institutes in local and nearby areas, cluster
member SSIs have not developed strong linkages with them resulting in no
significant improvement in design and standards of implements or introduction /
development of new implements.
Inter firm linkages and sub-contracting among SSIs in cluster are almost non
existent. There are no hard networks (consortias). However there is a
manufacturers association which takes up the matters of common concern with
appropriate authorities.
The major market for Karnal implements is Haryana, UP, Utteranchal, Rajasthan,
MP, Chhatisgarh, Bihar, J harkhand some parts of Maharashtra & Gujarat, and
even north east.
Only 2-3 units are exporting their products . However major export share is from
Harrow disc. Domestic market share of Karnal cluster implements is shrinking due
to various reasons.
There is lot of room for improvement in the working of SSIs in the cluster. Major
areas for improvement are Machinery & Technology, Design, Quality Management
systems, Human resources and Business Development Services. There is also
scope for improving inter-firm linkages and inducing networks for common buying of
Raw Materials and Consortia based exports. This will help in bringing down the
rivalry level in the firms and enhancing there bargaining power in front of Raw
Material suppliers as well as customers too.
There is potential for growth in Karnal agricultural implement cluster provided the
core cluster members show positive interest in implementing the proposed action
plan to achieve the Vision i.e. Technology up gradation through process
improvement and Standardisation with an eye on Quality enhancement and
value addition of the product. The strategic interventions are required to be made
in the areas of Technology up-gradation, Standardisation and Design improvement,
Personal counseling & training, Networking and Trust building.
Diagnostic Study Report
Agriculture Implements Industry Cluster at Karnal
Page 1 of 81
1. STATUS & IMPORTANCE OF CLUSTERS IN SSI SECTOR
As per the report of third All India Census of Small Scale Industries conducted in
the year 2001-02 there were more than 13,74,974 registered and more than
91,46,216 unregistered small scale enterprises in the country with Total Gross
Output of Rs. 2,03,25,462 Lakh. Out of these 65.55% were SSIs & Small Scale
Ancillaries among registered units and 38.75% in unregistered sector. The remaining
are Small scale Service & Business Enterprises (SSSBEs). Total SSI sector
(including service & Business enterprises) provides employment to about 2.5 crore
persons in total. With more than 6000 products / services produced /rendered in SSI
sector it contributes Rs. 14,19,956 lakh to national exports earnings. The value of
exports was only 5% of the gross output. The regd. SSI sector accounted for 87% of
the total exports with only 14.5 % of the exporting units.
Traditionally, there has been a phenomenon of a group of units manufacturing
same or similar product in close geographical proximity to each other. Such groups
were called clusters. Clustering has been recognized both nationally and
internationally as an engine of growth and identification of the clusters in SSIs had
facilitated effective policy formulation in the past.
As per 3
rd
All India census in the regd. SSI sector in the year 2001-02 a district
having 100 or more regd. SSI units engaged in the manufacture of same product
was considered as cluster for that product in that district. Similarly in unregistered
sector each district having an estimated no. of 500 or more un-regd. SSI units
engaged in manufacturing same product was considered to be a cluster.
According to above criteria 1223 clusters covering 321 products were identified in
the regd. SSI sector. These clusters had 32.68% share in total no. of regd. SSI
units, 18.95% in total market value of fixed assets, 16.99% in total gross output and
27.66% in total value of employment of manufacturing activity of the regd. SSI
sector.
In the unregistered SSI Segment there are 819 clusters covering 250 products had
been identified through out the country. These clusters had a share of 37.85% in
total estimated no. of un-registered units, 22.45% in total estimated market value of
Diagnostic Study Report
Agriculture Implements Industry Cluster at Karnal
Page 2 of 81
fixed assets, 21.04% in total estimated gross output and 34.63% in total estimated
value of employment in the manufacturing activity in the unregistered units.
Contribution of Clusters in Registered SSI sector is as per table:
Table:1.1
Particulars
Estimated
No. of
Units
Fixed
Investment
Gross
Output
Employment
For 1223 clusters engaged
in manufacturing-Activity in
Regd. SSI sector.
2,85,150 Rs. 15,812.03
Crore
32,862.0
Crore
13,98,846
For Total manufacturing
activity in regd. SSI sector
872449 Rs. 83433.7
Crore
193390.7
Crore
50,56,666
Share of 1223 clusters in
manufacturing activity in
regd. SSI sector (%)
32.68 18.95 16.99 27.66
Source: 3
rd
All India Census of SSIs 2001-02
Contribution of clusters in Un-registered SSI sector is as per table:
Table:1.2
Particulars Estimated
No. of
Units
Fixed
Investment
Gross
Output
Employment
For 819 clusters engaged in
manufacturing-Activity in
Un-regd. SSI sector.
12,50,207 Rs. 5,767.99
Crore
93,070.4
Crore
29,93,410
For manufacturing activity in
un-regd. SSI sector
33,03,366 N. A. N. A. N. A.
Share of 819 clusters in
manufacturing activity in
Un-regd. SSI sector (%)
37.85 22.45 21.04 34.63
Source: 3
rd
All India Census of SSIs 2001-02
As per Census Report, In Haryana, in registered SSI segment there were 38 clusters
having 7468 no. of units having Rs. 1049.91 crore fixed assets & Rs. 7177.73 crore
output and providing employment to 52171 persons. Similarly, there were 02 nos. of
clusters in un-registered SSI manufacturing sector having 1130 units and having
Diagnostic Study Report
Agriculture Implements Industry Cluster at Karnal
Page 3 of 81
Fixed assets of Rs. 16.77 crore and gross output Rs. 27.02 crore providing
employment to 1637 persons.
In view of the importance attached to cluster in SSI sector, an attempt has been
made to further develop these clusters in a planned and effective manner. Govt. of
India has adopted a scheme named CLUSTER DEVELOPMENT PROGRAMME.
This programme aims at systematically identifying the under performing clusters,
gathering dispersed knowledge through participatory study about its constraints and
potential as well as local linkages and support mechanisms. Then establishing an
atmosphere of trust within a cluster for building a realistic action plan to strengthen
the cluster.
Earlier, during late ninties UNIDO had identified 358 clusters throughout the country
that could be cover under the Cluster Development Programme. Later the list was
updated to 388. In Haryana, 21 clusters were identified for CDP out of which work
on Rice Milling Industry at Karnal was commenced in the year 2004.
Agricultural Implement industry at Karnal though contributing significantly in the
output, still does not fulfill the criteria of 100 or more registered SSI units. But has
been taken up for development by DC (SSI), Govt. of India at the special initiative of
Karnal Agricultural Implements Manufacturers Association (KAIMA)..
Diagnostic Study Report
Agriculture Implements Industry Cluster at Karnal
Page 4 of 81
2. AGRICULTURAL IMPLEMENTS MANUFACTURING IN SSI SECTOR
Overall National Scenario:
Agricultural Implements manufacturing segment is a significant segment of small
scale manufacturing sector. Its importance can be gauged from the tables given
below:
Table: 2.1
Position of Agricultural Implements Manufacturing Activity in Regd SSI segment
S.No. Criteria Measure Position
1. No. of units 18354 13
th
2. Gross output Rs. 66,324 lakh 43
rd
3. Employment 44799 persons 17
th
4. Export US$ 68.6476 million -
Source: 3
rd
All India Census of SSIs 2001-02 & www.tradeportalofindia.com
Table: 2.2
Agricultural Implements Manufacturing Activity in Un-regd SSI segment
S.No. Criteria Measure Position
1. No. of units 97049 Nos. (estimated) 15
th
2. Gross output 43017 lakhs 26
th
3. Employment 160195 persons 18
th
4. Export Rs. 300 lakhs 16
th
Source: 3
rd
All India Census of SSIs 2001-02
Agricultural Implements manufacturing Clusters in SSI Sector :
From the point of view of total no. of registered SSIs units in clusters, Agricultural
Implements Segment is having 28 clusters spread over 7 States i.e. Punjab,
Rajasthan, U.P., West Bengal, M.P. Gujarat and Karnataka with 5124 nos. of units
with fixed assets of Rs. 90.994 crores and gross output of Rs. 147.84 crores. It
provides employment to 12874 persons.
Diagnostic Study Report
Agriculture Implements Industry Cluster at Karnal
Page 5 of 81
Similarly, 25 clusters in un-regd. Segment (having 500 or more units) of agricultural
implements are spread in U.P., Bihar, Manipur, J harkahand, Madhya Pradesh,
Maharashtra, Andhra Pradesh, Karnataka and West Bengal with total no. of 35537
units, fixed assets of Rs. 61.063 crores, Gross output of Rs. 130.936 crores and
provides employment to 52,252 persons.
These above mentioned clusters do not include Karnal Agricultural Implement
manufacturing Clusters as it does not fulfill the criteria of one hundred
registered SSI units.
Diagnostic Study Report
Agriculture Implements Industry Cluster at Karnal
Page 6 of 81
3. DESCRIPTION OF THE CLUSTER
Every aspect of economic life in India is influenced by agriculture. Agriculture
sector contributes nearly 32% of the national income of India and it offers
livelihood to nearly 70% of the total population. Indian Industries depend upon
Agriculture for raw materials as well as for sale of finished products. Agriculture,
There for plays a vital role in the development of economy of the nation. Same is
the case with other developing countries.
Agriculture production depends not only upon land use, but also upon productivity
i.e. the relationship between agricultural output and input. Research and
development work in this field are being undertaken by various institutions all
over the world. Along with providing irrigation facilities, use of high yielding variety
of seeds, use of pesticides and insecticides, use of fertilizers and better
techniques of farming, use of modern agricultural machinery and implements
plays a vital role in increasing the productivity of agriculture output. Therefore
with the increasing awareness and trend in scientific cultivation and mechanised
farming, the use of modern agriculture implements has increased since the early
years of independence i.e. with the advent of green revolution.
.
Defining the Product:
As per Hand Book of Agricultural Machinery Terminology (SP-44:1989) by
Bureau of Indian Standards, the definition of Implement is Equipment generally
having no driven / moving parts, such as Harrow or having simple mechanism
such as Plough. But, practically agriculture operations invariably require the use
of various Implements for different purposes such as tillage, making seed beds,
land preparation, seeding, spraying and dusting pesticides / insecticides,
harvesting, thrashing and processing etc. Many of them are simple but some of
them have moving parts and are driven by power / tractor. Therefore for the
purpose of this diagnostic study all the farm machineries except tractors,
power tillers, diesel engines and water pumps have been considered as
agricultural implements.
Diagnostic Study Report
Agriculture Implements Industry Cluster at Karnal
Page 7 of 81
BROAD PRODUCT GROUPING:
Based on use and operation , these implements (farm equipments) can be
classified as :---
I. Tillage implements
II. Land & Seedbed Preparation implements
III. Sowing implements
IV. Plant Protection implements / equipments
V. Harvesting & Thrashing Machines
VI. Processing Machinery
VII. Transportation Equipments
All these implements or farm machinery may be manual, animal or tractor drawn /
driven or motor driven.
I. Tillage Implements :
These are used for breaking up the ground, turning it up and cutting furrows in
the soil. They include -----
i. Different types of Cultivators
ii. Different types of Harrows
iii. Different types of Ploughs
iv. Different types of Rotary Tillers
II. Land / Soil Preparation Implements:
They are for leveling the fields, make partitions & seed beds etc. and include --
--
i. Bund Former
ii. Shrub Master
iii. Ridgers
iv. Dole Maker
v. Soil Scoops
vi. Levellers (Kraha)
vii. Tramplers
viii. Paddy Puddlers & Cage Wheels
Diagnostic Study Report
Agriculture Implements Industry Cluster at Karnal
Page 8 of 81
III. Sowing Devices:
The following implements are used for sowing various crops:--
i. Seed Drill Machine
ii. Seed-cum-Fertilizer drill
iii. Zero Tillage Seed-cum-Fertilizers drill
iv. Bed Planters
v. Potato Planters
vi. Sugarcane Planters
vii. Paddy Transplanters etc.
IV. Plant Protection Implements / Equipments:
These are used to protect the crops from (a) Weeds, (b) Pests, insects & disease
etc.. They include
i. Paddy weeders
ii. Hoes
iii. Insecticide / pesticide spray pumps of various types, like ----knapsack
sprayers, foot operated / hand operated or engine operated etc.
iv. Insecticide / pesticide dusters
V. Harvesting & Thrashing Equipment:
Harvesting is the operation of cutting the crops in the field; it can be performed in
three ways i.e. manually, using tractor driven mini-harvesters / reapers or using
self propelled harvesting combine.
Thrashing is the process of taking out grains from the dry crop straw. It loosens
the grain and separates it from straw. The commonly used harvesting & thrashing
implements (tools) and equipments are ----
i. Sickles (manual tool)
ii. Mowers
iii. Reapers
iv. Straw Reapers
v. Threshers (Various types)
vi. Combine Harvester
Diagnostic Study Report
Agriculture Implements Industry Cluster at Karnal
Page 9 of 81
VI. Processing Implements & Equipments:
These are used to treat / prepare farm products for use, storage & preservation.
The processes included for the purpose are chaff cutting, grain grinding, grain
crushing & grain drying etc. The following implements& equipments are generally
used in processing of grains
i. Chaff Cutter Machine
ii. Grain Graders of different Types
iii. Sugarcane crushers
iv. Driers of different kinds
v. Paddy Processing machines i.e. Rice Shellers
VII. Transportation Equipment:
These are used to transport agricultural produce from farm / field to godown or
marketplace, They include---
i. Bullock Cart
ii. Trolley for Tractor
Above mentioned Agricultural Implements or Farm Machinery is being manufactured
at Bhopal, Ratlam, Bina, Muksi, Sihor, Neemach, Khurai (Sagar) and Indore in
Madhya Pradesh; Saharanpur, Sambhal & Barabanki in Uttar Pradesh; Rudarpur in
Uttranchal, Kota & J aipur in Rajasthan and Unjha & Ahemdabad in Gujrat. Ludhiana,
Hoshiarpur, J alandhar, Malout, Mansa, Ropar & Sangrur are the major industrial
clusters manufacturing farm machinery in Punjab and Karnal is major Cluster
besides good concentration at Sampla, Shahbad Markanda (Kurukshetra) and
Chhuchhakwas (Jhajjar) in Haryana.
Diagnostic Study Report
Agriculture Implements Industry Cluster at Karnal
Page 10 of 81
4. THE KARNAL AGRICULTURAL IMPLEMENTS CLUSTER
Introduction : Karnal Town of Haryana State is situated on National Highway No.1
(G.T. Road) between Delhi and Chandigarh. It is exactly in the middle of the 250 Km
span between Delhi the National Capital and Chandigarh, the state Capital of
Haryana & Punjab. Karnal is a historical place related to Mahabharta period. This
place was army camp of legendry Karna, the 6
th
brother of Pandvas. Presently
Karnal is the famous for two main reasons. First the presence of around 10 Nos. of
ICAR Units, many of whom are National level like National Dairy Research Institute
(NDRI), National Bureau of Animal Genetic Research (NBAGR) & Directorate of
Wheat Research (DWR) etc. Secondly Karnal is a famous centre of production of
most of the kinds of Agricultural implements and their components. There are about
70 working SSI units producing agriculture implements and their components at
Karnal proper and about 20 to 25 in nearby blocks of the District city.
The Genesis & History: Production of Tractor drawn Agricultural Implements at
Karnal started somewhere around late fifties or early sixties by Sh. Harbans Lal
Rajpal, Sh. Mool Chand Matta, Sh. Ram Kishan Dhall. Sensing the potential & future
of Agricultural Implements, they left the Govt. job of promoting use of tractors and
implements in agriculture and decided to start their own manufacturing unit of
agricultural implements. Some other enterprising gentlemen like Sh. Amir Singh, Sh.
Bahadur Chand and Sh. J asbir Singh also joined hands with them.
M/s Partap Iron Works, headed by Sh. Partap Singh Aneja were already producing
bullock drawn implements at this point of time at Karnal.
During these days cultivators were being imported mainly from Denmark by a Delhi
based firm named M/s New India Equipment owned by S. Tirlok Singh. They were
importing Harrow Disc too. Now their sons have unit of Harrow Disc at Bahadurgarh.
S. Tarlok Singh and S. Mohar Singh of Karnal had also started their firm by 1961
manufacturing implements who afterwards tried their hands in Harrow disc and were
quite successful. Another Delhi based Company, M/s Das Motors was also
Diagnostic Study Report
Agriculture Implements Industry Cluster at Karnal
Page 11 of 81
manufacturing Agricultural Discs during those days. Discs were mainly imported
from Australia, Yogoslavia and U.K.
Turning points: The first turning point came in the history of Karnal Agricultural
Implements Industry when around 1963-64 Govt. of India allowed direct import of
Agricultural Disc by registered SSI units. This proved to be very profitable and
encouraging to the implement manufacturers.
During that period M/s Eastern Engg. Co., at Bareilley tried manufacturing of horrow
disc but now they have discontinued. One firm from Lakhimpur Kheri (U.P.) also
tried but were not successful. Only Grow More brand disc from Meerut (U.P.) was
able to make regular supplier. Afterwards M/s Das Motors Mr. CR Dass started Disc
manufacturing at Sahibabad. By that time TATA had also started manufacturing &
supplying Harrow discs but being high priced were not purchased by Karnal
Implement Manufacturers. Afterwards around 1970, the item was reserved for
manufacture in SSI sector and TATA being large scale unit was banned from
making discs.
Around 1968-69 Sh. Harbans Lal Rajpal, M/s Pritam Singh Sons, Delhi, Sh. Ram
Gopal Latka of Kaithal & Sh. Mool Chand Matta jointly started manufacturing their
own disc at Karnal with manufacturing capacity of 100 discs per day. About a year
or two later around 1970, Sh. Prem Katyal, Sh. Ram Kishan Chandna & Sh. J .M.L.
Patni started another unit manufacturing agricultural discs in the name of M/s
Universal Steel Disc Co., with about 60 disc. per day capacity.
By this time Sh. Harbans Lal Rajpal started manufacture of tiller tynes with the help
of Sh. Arjun Dev Sehgal of M/s Prakash Engineering Works. Also there was ban on
import of 22, 24 & 26