Kolhapur Foundry Cluster - Financing Energy Efficiency at MSMEs

Transcription

Communication
Gaps & Needs
Analysis
nalysis
Communication
Gaps and Needs
Analysis
January 2013
Table of contents
Executive Summary
7
Tirunelveli Limekilns cluster
7
Kolhapur Foundry cluster
8
Pune Forging cluster
8
Ankleshwar Chemicals cluster
8
Faridabad Industrial cluster
9
Top line findings from all clusters
11
Way Forward: Transition from Phase I to Phase II
11
1. Introduction to the project
12
1.1. About Financing Energy Efficiency at MSMEs
12
1.2. Different project components
13
1.3. Marketing & General Outreach on EE Schemes
16
1.3.1. Objective
16
1.3.2. Importance
16
1.3.3. Approach & Methodology
16
1.4. Communication Gaps and Needs Analysis
17
1.4.1. Background Research
18
1.4.2. Inception Meetings with Industry Associations
18
1.4.3. Quantitative & Qualitative Research
19
2. Tirunelveli Limekiln Cluster
23
2.1. Introduction
23
2.2. Study of behavioural characteristics
26
2.3. Awareness level and Perceptions on EE
27
2.3.1. Awareness on Energy Efficiency
27
2.3.2. Perception on EE – Barriers, Motivators and Benefits
29
2.4. Media Preferences
2.4.1. Preferred Media Sources
32
32
2.5. Summary of findings
35
3. Kolhapur Foundry Cluster
36
3.1. Introduction
36
38
38
40
42
43
45
4. Pune Forging Cluster
46
4.1. Introduction
46
48
48
49
50
5. Ankleshwar Chemicals Cluster
53
53
55
56
5.1. Introduction
56
58
59
59
61
64
64
66
6. Faridabad Industrial Cluster
67
6.1. Introduction
67
69
70
70
71
7. Communication gaps and needs analysis
74
74
76
77
7.1. Common Communication gaps and needs
77
7.2. Communication gaps and needs for Tirunelveli Limekilns cluster
78
7.3. Communication gaps and needs for Kolhapur Foundry cluster
79
7.4. Communication gaps and needs for Pune Forging cluster
80
7.5. Communication gaps and needs for Ankleshwar Chemicals cluster
80
7.6. Communication gaps and needs for Faridabad Industrial cluster
82
7.7. Way forward
82
Appendix A. - Questionnaire survey form
84
Appendix B. - Tirunelveli Limekilns cluster
89
B.1. Cluster profile for Tirunelveli Limekilns Cluster
89
B.2. Demographic Profile of Tirunelveli Limekilns cluster
92
B.3. Energy Consumption Profile of Tirunelveli Limekilns cluster
95
Appendix C. - Kolhapur Foundry cluster
C.1. Cluster profile for Kolhapur Foundry Cluster
C.2. Demographic Profile of Kolhapur Foundry cluster
Appendix D. - Pune Forging cluster
97
97
100
102
D.1. Cluster profile for Pune Forging Cluster
102
D.2. Demographic Profile of Pune Forging cluster
105
Appendix E. - Ankleshwar Chemicals cluster
107
E.1. Cluster profile for Ankleshwar Chemicals Cluster
107
E.2. Demographic Profile of Ankleshwar Chemicals cluster
109
Appendix F. - Faridabad Industrial cluster
111
F.1. Cluster profile for Faridabad Industrial Cluster
111
F.2. Demographic Profile of Faridabad Industrial cluster
114
Abbreviations
Acronym
Full Form
AIA
Ankleshwar Industries Association
AIFI
Association of Indian Forging Industries
BEE
Bureau of Energy Efficiency
CLCSS
Credit Linked Capital Subsidy Scheme
EDM
Electronic Direct Mailers
EE
Energy Efficiency
EET
Energy Efficiency Technologies
ES CO
Energy Service Company
FI
Financial Institution
FM
Frequency Modulation
FSIA
Faridabad Small Industries Association
GEF
Global Environmental Facility
GOSHIMA
Gokul Shirgaon Manufacturers’ Associations
IIF
Institute of Indian Foundrymen
KEA
Kolhapur Engineering Association
LSP
Local Service Providers
M&V
Measurement & Verification
MSE-CDP
Micro and Small Enterprises Cluster Development Programme
MSME
Micro Small and Medium Enterprises
SIDBI
Small Industries Development Bank of India
SME
Small and Medium Enterprises
SMS
Short Message Service
TLMWA
Tirunelveli Lime Manufacturers Welfare Association
TOM
Top of Mind
TV
Television
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Executive Summary
The “Financing Energy Efficiency at MSMEs” project is part of the Global Environmental
Facility (GEF) Programmatic Framework (2010-14) for Energy Efficiency in India with an objective to
increase demand for energy efficiency investments in targeted MSMEs clusters and to build their
capacity to access commercial finance. The project targets activities in five MSME clusters and aspires
to address the current gap in the understanding and demonstrate a viable mechanism of synergic tieup between MSMEs, energy auditors, financial consultants/chartered accountants, local industrial or
MSME associations and local bankers.
The GEF implementation agency for this project is the World Bank, and the two executing agencies
are the Bureau of Energy Efficiency (BEE), Ministry of Power, Govt. of India and the Small Industries
Development Bank of India (SIDBI).
“Marketing and General Outreach effort to clusters and capacity building at industry
associations” is one of the assignments under the project component on Capacity Building and
Awareness of this project. The objective of this assignment is to build capacity and increase awareness
for Energy Efficiency at cluster and plant levels, on a large scale through the implementation of
various outreach & mobilization efforts and dissemination of information on successful case studies &
projects.
This assignment follows a well-accepted methodology based on market study and communication
planning, that is specially evolved to suit the specific requirements of the MSME clusters. It is
executed in three phases, wherein the first phase is the Gap and Need Analysis. The objective of
the Gap and Need analysis is to assess awareness levels and communication needs of MSMEs in five
clusters on energy efficiency and to understand their media habits. The tools used for Gap & Need
analysis are:



Secondary background research
A quantitative study including walkthrough and questionnaire surveys using a questionnaire
designed and customized for each of the five clusters
A qualitative study through Focus Group Discussions, based on a pre-approved discussion
guide.
Cluster-wise findings of the Gap and Need Analysis activities of first phase are presented below.
Close to 60 % of the surveyed Limekilns owners believe that EE is either insignificant or
moderately significant to their industry unit. This can be attributed to the lack of successful
demonstration and awareness. Such a situation creates strong need for demonstration of
Energy Efficient technology in the cluster. Around 61 % of the respondents further believed
that spreading awareness about EE is Most Significant.
The major perceived barriers in Tirunelveli Limekilns cluster are lack of funding, lack of
demonstration projects and lack of reputed technology providers. The willingness to invest in
high cost technology is observed to be low. EE improvement remains on back-burner as
compared to other issues like production output, plant maintenance, etc. Financial and tax
incentives emerged as the biggest motivators for promotion of EE.
Preferred sources of information are Newspapers, TV and Industry Association forums.
Mobile SMSes, FM Radio, Direct Emails and technology oriented Seminars/Workshops
follow closely. Dina Thanti, Dinamalar are the prominent mainline Newspapers and Sun TV,
Podhigai, and Jaya TV are preferred TV channels. FM Radio is popular among 40 % of the
surveyed participants.
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Kolhapur Foundry cluster
A vast majority of 90 % of the surveyed Foundry owners believe that EE and spreading
awareness on EE are among Significant and Most Significant activities. This situation is
complementing to ongoing media and outreach efforts under this assignment.
The main barriers perceived by Foundry owners in Kolhapur are lack of confidence in new
technologies and lack of reputed energy efficiency technology providers. Low awareness about
EE technologies among grass roots levels is also a barrier.
Financial incentives is voted as potential motivators for promotion of EE followed by Tax
incentives in our surveys. With the exception of CLCSS scheme for EE financing, there exists
lack of information on such schemes among entrepreneurs. Among FIs SIDBI is pioneering
and spearheading MSME financing with many schemes and programs for promotion of EE.
The preferred media sources are technology oriented Seminars / Workshops followed by
Mobile SMSes, Direct Emails, posters & banners and interaction with Industrial Associations.
Sakal, Pudhari Lokmat, and Times of India are the most read newspapers in the cluster.
Pune Forging cluster
Majority (60 %) of the surveyed Forging unit owners perceive that EE and spreading
awareness on EE are among Significant activities for the cluster. This situation is
complementing to ongoing media and outreach efforts under this assignment.
The key barriers perceived against promotion of EE measures are low awareness on
technologies and lack of confidence in new technologies. The cluster is open to adoption of
proven technologies and simpler financing procedures involving easier documentation.
Financing procedure and complexities therein are seen as the major concern for smaller
Forging units. EE promotion shall be aided when presented with provision of tangible
benefits like cost saving, improved quality, environmental compliances, safety, etc.
Tax incentives is major motivator for promotion of EE in Pune Forging cluster. Entrepreneurs
are constantly looking for availability of finance at relaxed interest rates, rebate in monthly
electricity bills and further incentives for application of renewable energy sources.
The present sources of information are sector-specific newsletters for forging industry, ASNQuarterly magazine, websites and techno-financial papers. The most preferred source of
information are Direct Emails, interaction with Industrial Associations, TV,
Seminars/workshops and Poster/banner. AIFI is most active and strong associations in Pune
Forging cluster.
Ankleshwar Chemicals cluster has strongly skewed perception against significance of EE and
spreading EE in the cluster. Almost 95 % of the surveyed Chemical unit owners indicated EE
as Insignificant with respect to their respective unit. The perception is primarily due to
several mandatory and voluntary EE interventions which did not yield results to the degree of
satisfaction of local entrepreneurs. Also, the share of energy cost in total production cost is
also less than 10% of which a significant portion is consumed in upkeeping and operation of
environment management systems, a regulatory requirement in the cluster.
Low awareness and lack of institutional financing with focus on EE are the key barriers
against promotion of EE in the cluster. Resistance to change, lack of innovation and nonavailability of benchmarks are subjective perceptions against promotion of EE in the cluster.
Financial and Tax incentives are perceived to be the most attractive drivers. Other crucial
benefits like access to better markets, improvement in workplace environment, improved
productivity and the feel good factor associated are subjective motivators for promotion of
EE.
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Industry Associations, Magazines, Seminar/workshops, Direct Emails & Industry journals (in
this order) are preferred source of information on EE. Mass media (Newspaper, Radio, TV &
Social media) received relatively poor rankings.
Faridabad Industrial cluster
Faridabad Industrial cluster has the widest array of industrial sectors within any of the target
clusters under the project and hence, it is called as mixed cluster. EE is broadly perceived as
having high Significance or Highest Significance by more than 75% of the surveyed units.
Similarly, more than 88% of surveyed MSME units in Faridabad opined that raising
awareness on EE is Higher/Most Significant activity for the cluster.
Low awareness about EE technologies, non-availability of ESCOs and Energy Auditors for
MSMEs and lack of incentivised institutional finance for EE projects are the key barriers
against promotion of EE in the cluster.
Financial and Tax incentives in form of rebates and reduction in interest rates and low tax
rates on EE technologies are perceived to be the most attractive drivers.
Direct Emails, Newspapers, interaction with Industry Associations and technology oriented
Seminar/workshops (in this order) are preferred source of information on EE. Times of
India, Economic Times and Hindustan Times are most preferred newspapers in the cluster.
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Relative ranking of preferred media sources is established by way of quantitative research. Based on collective weighted rank s, following media preference
analysis is presented.
Industry
Newspaper Associations
TV
Radio
Mobile SMS Magazines
E-mail
Seminar/
workshop
Industry
journals
Poster/
banner
Website /
Social Media
0
1
2
3
4
5
6
7
8
9
10
11
12
Tirunelveli
PwC
Pune
Kohlapur
Faridabad
Ankleshwar
10
Top line findings from all clusters
Communication gap and need analysis for all the five clusters is undertaken and individual findings from
qualitative research have been mapped with each other so as to identify the top-line common
communication gaps and needs in the target cluster. These are presented below.








The perception on EE and significance of awareness generation on EE are varied in different clusters.
Based on level of sophistication of the industry and previous exposure to EE, each cluster has a
preliminary awareness on EE. However, Top of Mind awareness, which is a pre-requisite for action, is
lacking across all the clusters.
The need for demonstration for a Touch and Feel experience, based on success stories, site visits and
case studies is strongest in Tirunelveli. However, it is observed at varying degrees in the other four
clusters also.
Each cluster feels a lack of knowledgeable and appropriate technology providers. Sometimes, there is a
lack in inclusion of EE in marketing focus by equipment suppliers.
Across clusters there is a need for information on benchmarks and Measurement & Verification (M&V)
systems.
Tangible financial benefits emerge as the main motivator for adoption of EETs. However clusters like
Ankleshwar (exporters) have a compulsion to follow the international norms (carbon credits, Carbon –
di- oxide, emission etc.)
The procedural requirements of Financial Institutions to avail financing is perceived as regressive
factor by entrepreneurs across all clusters
All MSMEs work through nationalized / cooperative banks and there is a certain level of comfort that
has been established among the MSMEs and the banks over the years. Such MSMEs find it difficult to
avail the benefit of dedicated EE financing schemes by other FIs.
MSMEs in same level of business activities over the years and satisfied at current profit /output level
are unlikely to adopt the EE unless coerced.
Summary of cluster-specific findings, both from qualitative and quantitative research, are presented as 7Ps
– Product, Price, Place, Promotion, People & Process, and Physical Evidence at end of each chapter.
A detailed communication gap and need analysis is conducted and findings are presented in chapter 7 as
Gap and Need Matrices. These matrices are presented for both overall (i.e. relevant to all clusters) and
also cluster specific analysis.
Way Forward: Transition from Phase I to Phase II
The Awareness and Outreach Strategy Plan (Communication Objectives & Strategy) shall be developed
based on the Gap and Need analysis findings. This shall include an umbrella strategy (covering all clusters)
and cluster specific strategy for each cluster.
Phase I
Insights
Communication
Gaps
Phase II
Communication
Needs
Communication
Objectives &
Strategy
Transition from Phase I to Phase II
Development of communication strategy will be followed by subsequent Phase II activities like Media Plan,
Thematic Plan etc. Marketing and outreach activities shall be taken up as part of Phase III of the
assignment.
Communication Gaps and Needs Analysis
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1. Introduction to the project
1.1. About Financing Energy Efficiency at MSMEs
The Micro, Small and Medium Enterprises (MSMEs) sector in India plays a significant role in terms
of balanced and sustainable growth, employment generation and development of entrepreneurial
skills. However, when compared to larger Indian industrial enterprises, the MSME sector is
characterized by relatively lower productivity and general high use of outmoded technologies
resulting in lower Energy Efficiency (EE) and energy intensity figures. Despite recent reductions in
overall energy intensity in India, the MSME sector has fallen behind larger Indian industries in
terms of technology up-gradation and EE. The reasons for this range from technological
obsolescence and information deficiency to poor management practices, lack of capacity to adopt
efficient technologies and non-availability of institutional finance.
The Indian MSMEs not only face the market barriers typically seen in EE projects globally, but
additionally domestic financing barriers such as accessing adequate and timely financing on
competitive terms, particularly longer tenure loans, collateral free loans, working capital loan etc.
The Reserve Bank of India (RBI) statistics show that the year-on-year growth rate of local Indian
bank credit to SMEs fell from 35.6% in 2007 to 7.4% in 2008, even while the overall year-on-year
growth rate of bank credit to industry (including large corporations) increased from 24.9% to 30.2%
over the same period.
Given the existing market barriers towards financing of observed in India, there is a need to
systematically support the development of a large number of EE investment proposals under a
programmatic approach to aggregate demand for EE investment in MSME industrial clusters and
to create a sustainable mechanism for identifying, preparing and financing these proposals at the
local cluster level. There are some highly energy intensive MSME sectors where the cost of energy
forms a sizeable proportion of the total production cost and offers tremendous scope for EE
improvement and pollution reduction through technology up gradation.
In this context, with an objective to address the needs of awareness generation on EE and
technology identification, capacity building of MSMEs for access to institutional finance, creation of
knowledge management portals with easy access for MSMEs and provision of dedicated financing
mechanism for EE improvement projects within MSMEs, the project Financing Energy Efficiency at
MSMEs has been launched at five MSME clusters from different industrial sectors.
Financing Energy Efficiency at MSMEs project is part of the Global Environmental Facility (GEF)
Programmatic Framework (2010-14) for Energy Efficiency in India with an objective to increase
demand for energy efficiency investments in targeted MSMEs clusters and to build their capacity to
access commercial finance. The project aspires to address the current gap in the understanding
between energy auditors and bank loan officers, and demonstrate a viable mechanism of synergic
tie-up between MSMEs, energy auditors, financial consultants/chartered accountants, local
industrial or MSME associations and local bankers.
The GEF implementation agency for this project is the World Bank, and the two executing agencies
are the Bureau of Energy Efficiency (BEE), Ministry of Power, Govt. of India and the Small
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Industries Development Bank of India (SIDBI). Five target MSME clusters have been identified by
project implementing and executing agencies as listed below:
1.
2. Faridabad Mixed Industrial cluster
3. Kolhapur Foundry cluster
4. Pune Forging cluster
5.
The identified barriers for mass scale deployment of EE technologies in MSME segment and the
approach developed under the project schematics are illustrated in Figure 1.1.
BARRIERS FOR FINANCING EE AT MSMEs
Gap in
understanding of
EE among
stakeholders
Imperfect
information
about
EE among
MSMEs
Higher
Transaction
Cost
Lack of
information
among banking
sector
stakeholders
Lack of performance
guarantee for
available
energy efficient
equipments
PROJECT APPROACH
Project design
include
marketing,
development, and
technical scoping
with financing
solution
Technical Assistance
to
increase knowledge on
the technical, policy &
regulatory aspects of
market to allow
improved
understanding of
sector risks
Standardization and
enhanced familiarity
by
key stakeholders of
identified EE
investments among
units with similar
characteristics
(Cluster Approach)
Technical Assistance
efforts delivered over a
longer term to build a
sufficient level of
knowledge, acceptance,
trust and ultimate demand
for EE goods & services
Figure 1.1: Barriers and approach for Financing Energy Efficiency at MSMEs
It can be seen from above figure that project approach has been developed so as to address each of
the identified barriers in an objective manner. In order to have a systematic transformation of
project approach into practical action, the specific project activities have been classified under three
major project components as discussed in next section.
1.2. Different project components
The sphere of project activities shall roll out focussed efforts in 5 target clusters to increase demand
for EE products and services and mobilize a large group of “decision – ready” units in partnership
with local Industry Associations, energy management professionals, local service providers and
leading vendors of EE technologies and equipments. These EE demand creation activities will then
be linked with the lending programmes of various Financial Institutions in the specific cluster.
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Based on the findings of project-supported energy audits, enlisted units shall receive support in
preparation of bankable Detailed Project Report (DPR) / application documentation in a format
acceptable to the banks to process the loan applications under current or new lending schemes and
hand-holding support in reaching financial closure for identified investments.
Therefore, in order to have a systematic transformation of project approach into practical action,
the specific project activities have been classified under three major project components as
illustrated in Figure 1.2 below.
GEF - WB MSME Project Components
1. Building Capacity &
Awareness
• Marketing & Outreach effort to
clusters, Capacity Building of
Industry Associations
• Technical Assistance to energy
professionals
• Support to Financial Institutions
• Support to MSMEs in accessing
finance
• Vendor Outreach, Enlistment &
support
2. Increased Investment in
Energy Efficiency
• Energy Efficiency related project
development support such as
Energy Audits / DPR
preparation
• Performance linked grants for
demonstration of energy
efficient technologies
3. Knowledge Management &
Sharing
• Knowledge Portal
• Helpline
• Success stories and Case studies
• Policy inputs on Knowledge
Management
Figure 1.2: Project components for Financing Energy Efficiency at MSMEs
As can be seen from above figure, the project components focus on practical engagements of various
MSME stakeholders like Banks and Financial Institutions, Energy Management Professionals in
MSMEs, Technology and Equipment suppliers, etc. The relationships among these stakeholders
and specific activities envisaged for each of these have been illustrated in Figure 1.3 .
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Figure 1.3: Project stakeholder groups and specific activities for Financing Energy Efficiency at MSMEs
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1.3. Marketing & General Outreach on EE Schemes
As can be seen from Figure 1.3, one of the project components under Financing Energy
Efficiency at MSMEs is Marketing and General Outreach on EE schemes. Bureau of Energy
Efficiency has entrusted PwC to execute the project “Marketing and General Outreach on EE
schemes” with objectives and methodology as detailed below.
1.3.1. Objective
The objective of the project is to increase awareness for Energy Efficiency at cluster and plant
levels, on a large scale through the implementation of various outreach & mobilization efforts
and dissemination of information on successful case studies & projects.
1.3.2. Importance
Marketing & Outreach on EE schemes is the project component of Financing Energy
Efficiency at MSMEs with objective to reach out to all present and potential stakeholders, to
inform them about the various products and services available under the umbrella program
and benefits thereof.
For Financing Energy Efficiency at MSMEs, widespread dissemination of the umbrella
programme’s objective is very important for successful execution of the programme. In order
to have focussed to-the-point and well targeted outreach activities, it is deemed important to
study the quantitative as well as qualitative aspects of information consumption and other
relevant behavioural characteristics of target stakeholder groups.
It is envisaged that such activities shall facilitate increased, better and more transparent
communication among and within various MSME stakeholder groups and shall ensure long
term sustainability of umbrella programme’s achievements and objectives.
1.3.3. Approach & Methodology
The project is broadly divided in to three sequential phases as mentioned below.
1.
Communication Gaps and Needs analysis
2. Strategic Planning and Preparation for Awareness and Outreach activities
3. Implementation and Monitoring of the proposed activities.
The approach and methodology adopted to execute the project is illustrated in Figure 1.4
below.
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Communication Gaps & Needs Analysis
Inception meeting with BEE-WB-GEF-SIDBI
Communication needs Assessment and
Analysis
Inception workshops
Strategic Planning and Preparation for Awareness and
Outreach activities
Formation of Cluster
Coordination
Committee
Awareness and
Outreach Strategy
Plan
Developing core
messages
Designing creative’s
for BEE/SIDBI and
creative capsules for
general awareness &
publicity
Awareness & Outreach
Thematic Plan
Formulation of Implementation and Monitoring plan
Testing of
outreach modules
Awareness &
outreach
scheduling &
Implementation
plan
Preparation of
Audio Visuals
EE awareness
workshops &
Dissemination of
awareness and
outreach materials
Support to
training
programmes
conducted by
other agencies
Institutional
development
Figure 1.4: Methodology for Marketing and General Outreach on EE schemes
It can be seen from above figure that Communication Gaps
Gaps and Needs Analysis is the firstmost step for Marketing and General Outreach on EE Schemes under Financing Energy
Efficiency at MSMEs.
1.4. Communication Gaps and Needs Analysis
Communication Gaps and Needs Analysis is
i the first of the three phases of project Marketing
and General Outreach on EE schemes. The objective of Communication Gaps and Need
analysis is to assess prevailing awareness level in target MSMEs clusters on EE and to
understand media habits and perception on significance of EE among such MSMEs
MSMEs. The
perception check also takes into account quantitative and qualitative assessment of perceived
barriers and motivators for adoption of EE measures. The sequence of activities for
Communication Gaps and Needs Analysis is illustrated in Figure 1.5.
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A3: Inception Workshops
Report on Gap and Need analysis
Communication need analysis
Questionnaire
FGD
Walkthrough
Survey
Meeting with IA’s, Champions
Identification of IA’s, Champions
Background Research
A1: Inception meeting with BEE-WB-GEF-SIDBI
A2: Communication Needs Assessment and Analysis
Figure 1.5: Activities for Communication Gaps and Needs Analysis
It can be seen from above figure that activities planned for Communication Gaps and Needs
Analysis take into account all groups of stakeholders which also falls in line with the core
theme of the umbrella project.
1.4.1. Background Research
The project team initiated Phase I of the project with the background research on past EE
interventions in each of the 5 clusters. This background research included the information
about the following:

Identification of past Energy Efficiency programmes in these clusters.

Identification of industrial association, principal SME’s, local utilities, Active financing
institutions like SIDBI, SBI etc.

Secondary research on locally accepted modes of communication like newspaper,
magazines, radio, television, internet, mobile operators etc.
1.4.2. Inception Meetings with Industry Associations
As a first step towards rolling out project activities, inception meetings were organized with
Industry Associations in each target cluster. The specific objectives of inception meeting
were as follows:

Introduce the project and apprise the Industry association about the project objective
and activities

Identification of important project stakeholders in the cluster

Understanding cluster dynamics and local sensitivities

Other relevant information exchange
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Table 1.1 presents the details of Industry Associations in each cluster.
Table 1.1: Inception meetings with Industry Associations
Cluster
Ankleshwar - Chemicals
Faridabad – Mixed Industrial
Kolhapur – Foundry
Pune – Forging
Tirunelveli - Limekilns
Industry Association
Contact Person &
Name & Address
Designation
Ankleshwar Industries
Association (AIA),
Mr Vipul Gajera,
President
Plot No. 618-619, GIDC Industrial
Estate, Ankleshwar - 393 002
Faridabad Small Industries
Association (FIA),
Mr Rajive Chawla,
FSIA Park, Opp. Plot No. 23,
President
Sector-24, Faridabad - 121 005
Kolhapur Engineering
Association (KEA),
Mr Pradeep
Vharambale,
1243/46-47, E, Ward Karajgar
Secretary
Road, Shivaji Udyam Nagar
Kolhapur-416008
Association of Indian Forging
Industry (AIFI),
Mr Praful Mokashi,
101/112, Nyati Millennium,
General Secretary
Off Nagar Road, Viman Nagar,
Pune - 411 014
Tirunelveli Lime
Manufacturers’ Welfare
Mr M Sivakumar,
Association (TLMWA)
President
143, PACR Salai, Andalpuram
RAJAPALAYAM-626 108
The project objectives and proposed activities were appreciated by Industry Associations
and each of the associations offered their cooperation to project activities in the cluster.
1.4.3. Quantitative & Qualitative Research
Walkthrough Survey
In order to gather deeper insights in clusters’ dynamics after inception meetings with
Industry Associations, the project team conducted initial Walk-through surveys in
representative MSME units in each cluster. The representative MSME units in each cluster
were selected in consultation with local Industry Associations for the purpose. The principal
objectives of Walk-through surveys were twofold:

to gauge the acceptability, accessibility and perception towards EE in these
representative MSME units

to capture both qualitative and quantitative relevant information which shall reflect on
the succeeding activities.
The required number of Walk-through surveys for the entire duration of activity was fixed at
10 (ten) in consultation with local stakeholders after due approval from BEE. It was
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envisaged that such number of Walk-through surveys shall represent the entire spectrum of
MSME units in respective clusters. However, based on information gathered during the
execution of the activity, it was observed that coverage of a larger number of target MSME
units was required for adequate and proper representation of various possible variables in
unit level operations. Hence, the number of Walk-through surveys was increased in each
cluster so as to address the need of complete representation. Table 1.2 presents the number
of Walk-through surveys conducted in each cluster for Communication Gaps and Needs
Analysis against the target number of Walk-through surveys for that particular cluster.
Table 1.2: Target and completed Walk-through survey for all five clusters
Cluster
Walk-through Survey (No.s of)
Remarks
Target
Total
10
15
Completed
10
19
Completed
10
12
Completed
Pune – Forging
10
10
Completed
10
10
Completed
It can be seen from above table that Walk-through survey activity was completed in all five
target cluster.
The findings from Walk-through surveys have been compiled and analysed and presented in
forthcoming cluster-specific chapters in this report.
Questionnaire Survey
Questionnaire surveys were conducted in each cluster covering a strategic number of MSME
units so as to achieve a representative picture of relevant parameters of cluster dynamics,
industry profile, demographic profile, perception on EE and needs of awareness generation
on EE, media preferences and media consumption habits. Information gathered through
Questionnaire survey formed the part of quantitative research and findings of
communication gaps and needs assessment. The Questionnaire survey (in addition to
objective information for quantitative research) also provided a platform for extending the
scope and coverage of qualitative research (explained separately in this report) so as to
gather deeper insights in cluster level sensitivities and wider outreach.
Direct contact was established with MSME units in each cluster to motivate the MSME units
for participation in unit level activity. Table 1.3 presents the number of Questionnaire
surveys conducted in each cluster against the target number (for the entire duration of
activity) of Questionnaire surveys for each cluster.
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20
Table 1.3: Target and completed Questionnaire survey for all five clusters
Questionnaire Survey (No.s of)
Cluster
Remarks
Target
Total
120
133
Completed
60
60
Completed
50
50
Completed
Pune – Forging
25
25
Completed
25
25
Completed
Questionnaire survey activity was completed in all five clusters. The information gathered
from above Questionnaires surveys has been compiled and presented in forthcoming clusterspecific chapters in this report. A copy of questionnaire is attached as Appendix A with this
report for reference.
Workshops/Focus Group Discussion
Workshops for Focus Group Discussions (FGDs) were conducted among the identified
stakeholder groups within each cluster. For the purpose of independence of views and
transparency in communication, two separate groups were created for each FGD with
following composition:

Group A - Members from MSME units in the cluster

Group B - Members from Industry Associations, Financial Institutions, Local Service
Providers and Vendors, Energy professionals, policy stakeholders like District Industries
Centre (DIC), State Electricity Board (SEB), etc.
The objective of conducting Focussed Group Discussions (FGDs) was to understand the
issues and perceptions related to EE within the clusters and identify the reachability,
acceptability and effectiveness of locally available outreach resources.
Each FGD consisted of 6 to 12 participants and was moderated by a moderator fluent in
Local language and English and to be assisted/ facilitated, if possible by a SME/ opinion
leader in case of the discussion being technical in nature. Methodological steps adopted for
conducting the FGDs in each cluster are illustrated in Figure 1.6 below.
1
2
3
4
5
6
Develop
DG for
FGD
Discuss
and
Brief the
moderator
s&
interviewer
Schedule
and
Conduct
FGD’s
Transcribe
and
translate
FGD’s
Analyze
data and
prepare
Qualitative
Report
Finalize
DG
Figure 1.6: Steps for conducting Focus Group Discussions
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21
Table 1.4 presents the number of FGDs conducted in each cluster against the target number
(for the entire duration of activity) of FGDs for each cluster.
Table 1.4: Target and completed FGDs for all five clusters
Cluster
FGDs (No.s of)
Remarks
Target
Total
2
2
Completed
2
2
Completed
2
2
Completed
Pune – Forging
2
2
Completed
2
2
Completed
It can be seen from above table that FGD activity was executed and completed in all target
clusters. The information gathered from above FGDs is compiled and presented in
forthcoming cluster-specific chapters in this report..
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22
2. Tirunelveli Limekiln Cluster
2.1. Introduction
Tirunelveli Limekilns cluster is selected as one of the five target clusters under the Financing
Energy Efficiency at MSMEs project. PwC has conducted detailed exercise for assessment of
communication gaps and needs in the cluster by conducting quantitative and qualitative
research as per methodology explained in earlier chapter of this report. The findings of
communication gap and needs assessment for Tirunelveli Limekilns cluster are presented in
this chapter.
Cluster at a glance
Tirunelveli city is a district’s headquarter located in southern region of Tamil Nadu state. A
traditional industrial activity in Tirunelveli is
manufacturing
of
Lime
from
limestone.
Tirunelveli houses a cluster of MSME industrial
units engaged in manufacturing of Lime. The
decades-old tradition of Lime manufacturing has
been
supported
by
stimulating
factors
like
geographical proximity to limestone reserves and
availability of suitable fuel (charcoal), while
enterprising factors like continuous increase in
demand of Lime has contributed to increase in
Lime manufacturing units over last several
decades.
Lime produced in Tirunelveli is generally graded as either one of ‘Cem grade’ Lime or
‘Chemical grade’ Lime and the MSME units engaged in manufacturing of any of such grades of
Lime are called Limekilns.
Manufacturing of Lime in Limekilns is an energy intensive process. Over past several years,
Limekilns in Tirunelveli have been facing concerns of rising share of energy cost in the overall
manufacturing cost. The situation has been worsened by continued presence of decades-old
primitive Lime manufacturing technology which leads to higher specific energy consumption
loss in productivity.
Detailed exercise was carried out by way of Walk Through Surveys and Focussed Group
Discussions to map following parameters:

Number of Limekilns and location thereof,

Estimated collective production output from Limekilns

Important stakeholders in the cluster including Industrial Associations, Financial
Institutions/Banks, Equipment vendors and Institutional Stakeholders

Previous and other ongoing Energy Efficiency improvement programs in the cluster
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23
There exist 94 MSME Limekiln units in Tirunelveli with is 227 installed kilns. Limekilns are
located as concentrated pockets in Rasta, Rajapalayam, and Sankar Nagar regions in
Tirunelveli and collective production output from all Limekilns is estimated at 500 tonnes per
day (TPD).
Details of mapping exercise are presented as cluster profile for Tirunelveli Limekilns cluster as
Appendix B.1 with this report.
Demographic study
For any communication and outreach exercise to be effective, it is important to ascertain
preliminary demographic parameters of the target group. Demographic study survey is carried
out for Tirunelveli Limekilns cluster to understand distribution of following demographic
characteristics related to MSME owners and workers, as relevant.

Preferred language of communication

Formal education level of entrepreneurs

Sector-specific experience of entrepreneurs

Typical working day
It is observed that Tamil is the most preferred language and has 100% acceptance as spoken
language in the cluster. Also, except for a small share of entrepreneurs (10%), the cluster is
mostly formally educated. Majority of entrepreneurs (78%) have more than 10 years of
experience in Limekiln operation. Power cuts are reported as major operation concern in the
cluster and has major role in determining working schedule of entrepreneurs.
Details of demographic study survey are presented as demographic profile of Tirunelveli
Limekilns cluster as Appendix B.2 with this report.
Energy consumption profile
Lime produced in Tirunelveli is generally graded as either one of ‘Cem grade’ lime or ‘Chemical
grade’ lime based in increasing order of calcium content in lime. Limekiln units have typically
2 – 6 number of kilns installed in each unit. Production output from each kiln also varies from
2 – 8 TPD. Based on the number of kilns in operation at any given time and loading of kilns,
the typical production output from Limekiln unit varies from 8 – 55 TPD with majority of units
falling in 10 – 20 TPD range.
Kilns installed in Tirunelveli are universally batch type. Typical kiln dimensions are 2 m height
and 3 m internal diameter. Choice of kiln construction material lacks any thermal efficiency
basis and does not involve use of refractory bricks or insulation on either side.
Majority of Limekilns (80%) operate in two shifts of 8 – 12 hours each. Capacity utilization of
Limekilns lies in the range of 80 – 100% utilization for 44% units and 60 – 80% for 22% units.
Rest 34% Limekiln units operate at less than 60% of installed capacity.
Specific fuel (charcoal) consumption of Limekilns is measured around 200 kg per tonne of
lime. Charcoal is sourced locally at the cost of Rs 11 per kg. Additionally, 50kWh of electricity is
required for operation of various electrical equipment. Units receive electrical power from LT
connections from Tamil Nadu Electricity Board (TNEB) at Rs 5/kWh.
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Energy Cost varies from 35% to 60% of the total production cost. For 60% of the units
surveyed, the share of energy cost fall between 41 % and 50% of the total production cost.
Figure 2.1 shows distribution of share of energy cost in total production cost among the
surveyed units.
10%
17%
13%
35% - 40%
41% - 45%
46% - 50%
51% - 55%
20%
40%
55% - 60%
Figure 2.1: Distribution of share of energy cost in total production cost in
Above figure shows share of energy cost rises as high as 50 – 60% for about a quarter of
Limekilns. Such a scenario reinforces the need of Energy Efficiency as an important cost
reduction technique for Limekilns in cluster. Entries in legend represent the share of energy
cost in total production cost whereas entries on pie-chart
pie chart represent share of units falling in any
particular legend.
Detailed energy consumption profile of Limekilns in Tirunelveli has been presented as
Appendix B.3 with this report.
Focussed discussions were conducted with Limekiln owners as part of qualitative research to
understand unit level concerns and subjective response to such issues of concern. Sni
Snippets
from such discussions are provided
pr vided below to present a subjective understa
understanding of grass root
sentiments in the cluster.
“in a 24 hour period, we don’t have power for around 12 hours. It goes (off) every
three hours……”
“Lime
ime from this cluster is mainly used for hardware and
whitewash, which is a seasonal market (4 months a year)…that
too is fast being replaced by emulsions”
emulsions
“Cost is more for whitewash and painting….compared to that of
emulsions are more economical”
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25
In an analogy to behaviour of consumers to adoption of new products, Limekiln owners are
treated as “consumers” to study trends in response towards new product “Energy Efficient
Technologies”. Simple but effective tools are employed to identify a number of factors which
are likely to govern any typical Limekiln
Limekiln owner’s response towards question of adoption of
upcoming technological trends and incorporation of Energy Efficiency in everyday affairs.
Following Box presents an example of response from survey participants against simulated
situation (similar to actual
ual working environment) posed before them.
Discussion Point: Suppose there are two people SRIRAM and GANESHAN.
Both are aware of the EE initiatives. Shriram adopts but Ganeshan does not
adopt EE initiatives. Describe to me both Shriram and Ganeshan.
What type of organization do they belong to? How many years’ experience do
they have? How old are they? What is their family like? What do they like to
do? What do they not like to do? What may be their yearly output/income?
Likely to Adopt
• “Must be aged between 40 to 50
yrs”
• “ ….follows latest trends….”
Not Likely to Adopt
• “He must be having financial
problems”
• “ …must be aged between 65 to
70 yrs”
• “ satisfied following old (tested)
methods”
• “ self-satisfied
satisfied and old
oldfashioned”
“There
There is latent market in chemical, paper paint and effluent treatment
industries….But for that certain level of Calcium oxide has to be maintained as per
specifications…which is impossible
imp
in open kilns”
“In closed kilns with gauge, it is possible to maintain the levels but
for that raw materials need to be of much better quality
“One who is younger,
younger and likes to follow latest trends, and is
not under any financial stress,
stress is more likely to adopt….”
A number of such simulated questions were posed before the participant during the qualitative
research and responses are mapped for degree of acceptance of new technologies. The outcome
of responses has been categorised as Early Adoptors (or frontrunners / champions), Early
Majority, Late Majority and Non-Adoptors.
Non Adoptors. Figure 2.2 shows the distribution of responses and
classification thereof in each of the categories as mentioned here.
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26
 Proactively searching for the
 Keeps track of
 Does not
latest technology options
technologies like
proactively seek
small capacity
new technologies
 Talking to vendors, seeking out
VSKs
and efficiency
information
measures
 Interested in
 Keeps track of evolving
 Waits for a
adopting new
technologies like small capacity
technologies and
technology to
VSKs
efficiency measures
mature to a point
 Likely to be actively involved in
where it is
 However, will not
technology uptake efforts
thoroughly
initiate change
through industry association
demonstrated
unless technology
 May have already experimented
and becomes
is practically
with some measures like
relatively cheap
demonstrated
efficient retrofits, better kiln
 May be smaller in
design etc.
scale of
 Financially better off, may be
operations
enjoying relatively better
economies of scale
 Usually command a larger
market share
 Employs more qualified staff
 May have financial
difficulties and hence averse
to taking even calculated
risks
 Decision makers may be
experienced and very
conservative in their
approach.
oach. Believe in
following the tried and
tested methods “…aged
between 65 to 70 yrs…”
 May be very small in scale of
operations
 May not have a large market
share
 Will wait until the
technology / measure has
matured to the “tried and
tested” stage
Figure 2.2: Behavioral characteristics for adoption of Energy Efficiency measures
in Tirunelveli Limekilns cluster
E
As a stepping stone towards formulation of communication and outreach strategy for the
cluster, it is important to assess the existing level of awareness and needs of awareness
generation among the target groups.
groups. Also, it is deemed important to assess the barriers faced
by the target groups in adopting Energy Efficiency measure once they reach an aware sta
stage of
perception. The participants were also requested to provide information on such factors which
shall motivate them to adopt Energy Efficiency in their respective units. Insights gathered from
these perception checks and barrier-motivator
barrier
analysis shalll translate in manifestation of
communication and outreach strategy. These have been discussed in detail in upcoming
sections.
2.3.1. Awareness on Energy
E
Efficiency
Perception check survey was carried out to assess the level of awareness on needs of Energy
Efficiency as well as needs of awareness generation for Energy Efficiency. The participating
entrepreneurs from Tirunelveli Limekiln cluster were requested to rate both the parameters
with respect to their MSME unit on a scale of 1 to 5, five being the highest or ‘Most Significant’.
Figure 2.3 shows the distribution of response gathered from Limekiln owners in Tirunelveli to
rate significance of Energy Efficiency in their respective units.
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27
% of Respondents
44
Significance of Energy Efficiency
31
14
11
0
Insignificant (rating
1)
Less Significant
(rating 2)
.
Moderately
Significant (rating
3)
Significant (rating
4)
Most Significant
(rating 5)
Q: Rate the significance of energy efficiency in your plant from 1 to 5
(1 signifies least significant & 5 signifies most significant)
Figure 2.3: Perception in Tirunelveli Limekilns cluster on Significance of Energy
Efficiency measures
Above figure shows that 60% of the participating Limekiln owners perceive energy efficiency as
either insignificant or moderately significant with respect to their unit.
As part of quantitative research, a perception check survey on ‘Significance of spreading
awareness
ss regarding Energy Efficiency’ was also carried out. Figure 2.4 shows the distribution
of response gathered from Limekiln owners in Tirunelveli to rate significance of spreading
% of Respondents
awareness regarding Energy Efficiency in industry.
Significance of spreading Awareness on Energy Efficiency
56
22
11
6
Insignificant (rating
1)
Less Significant
(rating 2)
3
Moderately
Significant (rating 4)
Significant (rating 3)
Most Significant
(rating 5)
Q: Rate the significance of spreading awareness to promote energy
efficiency - from 1 to 5 (1 signifies least significant & 5 signifies most
significant)
Figure 2.4: Perception in Tirunelveli Limekilns cluster on Significance of
spreading awareness on Energy Efficiency
It can be seen from above figure that 61% of the participating Limekiln owners believe that
spreading awareness about energy efficiency is most significant to their
their industry unit, which is
a complementing situation to the awareness generation program and outreach strategy.
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28
Based on Focussed Discussion during qualitative research, these
hese perceptions can be
attributed mainly to lack of successful demonstration of energy efficiency in the
cluster, and also in part to lack of adequate awareness.
On a positive note, preliminary
reliminary awareness about Vertical Shaft Kiln (VSK) is evident. However,
there is a dearth of understanding of the technology itself and its optimized application. While
the cluster has been exposed to Energy Efficiency improvement programmes since 2006, only
a few active association members and Limekiln owners are adequately
ly informed. Otherwise,
awareness
wareness is limited to knowledge of the existence of Vertical Shaft Kiln technology. This is
supported by following snippets from Focussed Discussions
iscussions with Limekiln owners.
“There is limited
imited awareness about energy efficient technologies… “there have
been 4 to 5 meetings…and we have been informed on this”
“... association will tell us to go to a certain place….we will
eat some snacks and then the meeting will wind up….we
only sit and get bored …the same thing…vertical kiln etc
“There
There have been multiple meetings organized by association,
but rarely any extra information is disseminated …”
…
“….like in one meeting when the charcoal price shot up,…they
,…they told
us to use some alternate method like biogas.….”
Barriers and Motivators perception check was carried out during the survey to identify the
issues of concern among Limekiln owner which can potentially pose hindrance in deployment
of Energy Efficiency. Participants were requested to identify barrier and motivating factors that
they perceive as affecting their field of view regarding Energy Efficiency. For the sake of
convenience, several common
common barriers and motivators were already listed in the questionnaire;
however, the participants were provided option of adding more to the already listed ones.
Figure 2.5 shows perception of Limekiln owners towards Barriers.
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29
Barriers in adopting EE measures
Financial institution reluctant to provide loan
17
Lack of confidence about new technologies (lack of
demnonstration projects)
Non availability of reputed ESCO and energy auditor to
implement and design projects
42
36
Lack of incentives for implementing EE projects
Energy efficiency not being a priority for the management
28
8
Lack of funding for EE projects
Low awareness about EE technologies
56
25
% of respondents
Q: What according to you have been / are the barriers for implementing
energy efficiency measures in your unit? (Tick applicable)
Figure 2.5: Perception in Tirunelveli Limekilns cluster on Barriers for
implementing Energy Efficiency
It can be seen from above figure that significant barriers for Tirunelveli Limekilns cluster are:

Lack of funding – high cost of technology

Lack of demonstration of technology for the typical kiln size, and local conditions in
Tirunelveli

Lack of reputed (knowledgeable / trustworthy) technology providers (ESCO)

Low awareness levels on EE
Above mentioned quantitative findings are further supported by findings from qualitative
research.
“In Andhra they use
se coal, while we use charcoal...the
charcoal...the kiln has suited their
purposes, we do not know if the same will suit us here…”
“The
The same person is able to get loans from X, but not from Y... Y
gives loan to MSMEs for Rs 1 Crore and above only…however for
lower value projects, without collaterals, they can finance as ‘risk
capital’ at a much higher rate of interest”
interest
“Government
Government has still not understood ….what our requirement is
is...”
…after that when the power optimizer got burnt, motor was also
burnt…it will be easy when they tell us,…what motor to use with the
power optimizer”
Similarly, perception check survey was conducted for identification of factors that can
potentially motivate and favour in creation of such environment which is conducive for
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30
increasing the demand for Energy Efficiency investments in Tirunelveli Limekiln cluster.
Figure 2.6 shows perception of Limekiln owner towards Motivators for Energy Efficiency.
Motivators for promoting EE
19
Financial programmes
Mandatory regulations
11
42
Tax incentives
50
Financial incentives (except tax incentives)
% of respondents
Q: What schemes/ programs/ policies would be helpful for promoting
energy efficiency in your business? (Tick applicable)
Figure 2.6: Perception in Tirunelveli Limekilns cluster on Motivators for
promoting Energy Efficiency
It can be seen from above figure that financial incentives and tax incentives are the biggest
perceived motivators for promotion of Energy Efficiency in Tirunelveli Limekilns cluster.
Qualitative research reveals that in addition to incentives, new technologies and financial
schemes with ‘touch and feel’ experience, largely derived from demonstrat
demonstrations, might find
greater acceptance with the Limekiln owners.
“It will be better, if they take us to that place where a new scheme has been
adopted and conduct a workshop there.”
“... association will tell us to go to a certain place….we will “If
someone has tried a new method, it will be easier for us to use it, if
we can actually see it working.”
“You must only help us with something; we are expecting
you to do it.”
On similar lines, qualitative research also focussed on benefits of Energy Efficiency as
perceived by Limekiln owners. Participants were requested to list the benefits of Energy
Efficiency as understood by them at different levels of utility perception. Figure 2.7 shows
categorization of such qualitative inputs on benefits
benefits of Energy Efficiency in Core, Augmented
and Peripheral benefits as meaningful to the entrepreneurs in the cluster.
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31
Onion Peel Techinque
Techinque: When we talk of any
initiative there are certain things that are its
core and then there are peripherals. We can
think of similarity with onion – the core is
the strongest in terms of flavor and fades as
we move outward.
Now tell us based on your perceptions what
do you think is the core (message, benefits
etc) of this EE initiative?
Figure 2.7: Perception in Tirunelveli Limekilns cluster on Benefits of Energy Efficiency
An important component
omponent of our quantitative and qualitative research is analysis of media
habits and media preferences of Limekilns owners and workers in Tirunelveli. This section
presents outcome of analysis of media preferences and media consumption habits of
participants
nts of Walk Through Surveys and Focussed Group Discussions.
Analysis of preferred media sources for entrepreneurs in Tirunelveli Limekiln cluster was
carried out as part of quantitative research. Responses of participants are ranked from 1 to 11,
one being most preferred. Figure 2.8 shows ranking of different media sources as gathered
from participants from Tirunelveli Limekilns cluster.
Newspaper
TV
Q: Rank the listed
media sources from 1
to 12 for using them
as trusted source of
information for key
decisions in your
unit?
Mobile messages
Radio
E-mail
Seminar / Workshop
Magazines
1
2
3
4
5
6
7
7
Industry Journals
Poster / Banner
Website
9
9
11
Figure 2.8: Ranking of preferred media sources in Tirunelveli Limekilns cluster
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32
It can be seen from above figure that Newspaper and Television are most preferred media
sources in the cluster. These are followed by interactions with Industry Association (TLMWA),
Mobile Messages and FM Radio.
In order to further probe into the choices among various media options from the preferred
ones, and to understand the media consumption habits of the target group, further analysis of
quantitative information has been conducted and presented here.
Newspaper preference
% of repondents
Figure 2.9 shows the most popular newspaper among the participants.
42
38
12
5
Dinamalar
Dinathanthi
Dinakaran
3
Hindu
Indian Express
Q: Which newspaper do you read?
How often do you read newspaper?
Which section of the newspaper do you read first?
Figure 2.9: Preferred newspapers in Tirunelveli Limekilns cluster
Dina Thanthi and Dinamalar newspapers are positioned as most preferred among Limekiln
owners in Tirunelveli. The Hindu is the most preferred English newspaper in the cluster. Close
to 60% respondants prefer the front page of newspaper as compared to other section which
include Political, Editorial, Sports, District News and others.
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33
Television channel preference
Figure 2.10 shows the order of preference for second most preferred media source i.e.
Television.
23
% of respondents
23
16
13
6
6
3
3
3
3
Q: Which channel do you usually see?
What time do you view television?
What programmes do you see in television?
In weekends which additional channels do you see?
Figure 2.10: Preferred Television channels in Tirunelveli Limekilns cluster
It can be seen from above figure that preferred channels are Sun TV, Puthiya Thalaimurai, Sun
News, Vijay TV and KTV which are predominantly News chanels. Participants responded that
viewing regular TV Sops and serials is not feasible for several reasons iincluding irregular
workschedules and unforeseen enagements.
FM Radio channel preference
FM radio emerged as preferred media source for about 40% of the participants. Most popular
FM Radio channels are,

FM Suryan

FM Hello
FM Radio is mostly attended to while driving and travelling.
Q: Which channel do you listen to (frequency)?
Where do you listen to radio?
At what time you listen to radio?
While above mentioned media channels are effective for routine information delivery,
awareness on Energy Efficiency has been channelized only by way of focussed programmatic
intervention through different workshops and seminars conducted by TLMWA with supp
support of
various development oriented organisations.
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The sumary of findings of quantitative and qualitative research are simultaneously mapped as
“7Ps” in the context of Energy Efficiency.
Product
There is a necessity of practical demonstration of Vertical Shaft Kiln technology, a
‘touch and feel experience’ under the prevailing local conditions, for acceptability and
adoption.
Price
Energy cost (charcoal and electricity) varies from 40% to 50% of the total production
cost for a majority of the units surveyed, and thus a strong case for promtion of EE.
Place
Demonstration of adaptability of recommended technology in local conditions is an
absolute necessity for adoption.
Promotion
Connecting energy efficiency with other key benefits and concerns in the sector like
product quality, productivity, pollution control, improvements in workplace and
working conditions can be key to promoting EE.
People
Process
&
Most likely adopters of new technology would be the younger MSME owners who are
open to new technology trends, and do not have financial crunch. Processes to avail
financial assistance for up-gradation is laborious, and often inaccessible
Physical
Highlighting key messages and best practices etc. through visual means like charts
Evidence
and posters, are an effective means of awareness creation among the workers and
grass roots levels in units. Use of vernacular language and Liberal use graphics will aid
assimilation of ideas.
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3. Kolhapur Foundry Cluster
3.1. Introduction
Kolhapur Foundry
undry cluster is selected as one of the five target clusters under the Financing
communication gaps and needs in the cluster by conducting quantitative and qualitativ
qualitative
communication gap and needs assessment for Kolhapur Foundry cluster are presented in this
chapter.
Cluster at a glance
Kolhapur, since long, has been renowned for its foundry industry cluster for manufacturing
premium cast products for industries across sectors like Automobiles, Electric Motors, Pump
Housings,
General
Engineering
components, etc. Among several other
parameters,
ters,
and
strategically
important
Kolhapur
also
foundry
because
of
presence
of
cluster
in
Indian
foundry sector, the cluster was chosen as
one
of
the
target
sector
sector-cluster
combination in the Project. Approximately
250
operational
Foundries
exist
in
Kolhapur in any of the four concentration
pockets
located
in
greater
Kolhapur
region. These regions are Shiroli, Gokul Shirgaon, Hathakanagle and Kagal. A small fraction of
Foundries is also located in Shivaji Udhyamnagar region within Kolhapur city.
Foundries in
n Kolhapur have organized themselves into several industrial associations. These
associations serve as a platform for discussions on common issues as well as new research. Of
several, the major associations actively contributing towards cause of Foundries in Kolhapur
are:

Kolhapur Engineering Association, Kolhapur

Institute of Indian Foundrymen, Kolhapur Chapter

Shiroli Manufacturers’ Association, Kolhapur

Gokul Shirgaon Manufacturers’ Association, Kolhapur

Manufacturers’ Association of Kagal – Hathkanangale
The
he equipment needs of the cluster are being currently met out by an array of technology
suppliers that range from equipment designers, to suppliers of principal equipment like
Cupola/Induction
/Induction Furnace and other utilities and auxiliaries. Financing needs of the cluster
have traditionally been met from strong presence of Cooperative Banks and Societies.
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36
However, since recently, MSMEs in the cluster have been gradually approaching other public
as well as private banks to avail their financing needs.
A cluster coordination committee (CCC) with representation from multitude of stakeholders
like MSMEs, Industry Associations, Financial Institutions, etc has been created to closely
monitor and support various Project activities in the cluster. CCC affairs are managed by locally
present See-Tech
Tech Solutions Pvt Ltd. The Energy and Resources Institute (TERI), New Delhi
and PwC, Gurgaon, serve as Project Development Partners and Outreach Partners re
respectively.
Details of mapping exercise are presented as cluster profile for Kolhapur Foundry cluster as
Appendix C.1 with this report.
Demographic study
preliminary demographic parameters of the target group. Demographic study survey is carri
carried
out for Kolhapur Foundry cluster to understand distribution of following demographic



Sector-specific
specific experience of entrepreneurs

Typical working day
It is observed that Marathi is the most preferred language and has 98%
% acceptance as spoken
language in the cluster. However, Hindi and English also find wide spread acceptance and are
spoken by 86% and 94% of the entrepreneurs respectively. Entrepreneurship is supported by
high degree of technical education and 54% of entrepreneurs hold graduate degree in
Engineering in the collective
ective 92% graduation level. Rest 8% entrepreneurs are educated to
Diploma level. 69% entrepreneurs have more than 10 years experience in Foundry operations
and hence possess deep insights related to day-to-day
day
day affairs in Foundry sector. Details of
demographic
aphic study survey are presented as demographic profile of Kolhapur Foundry cluster
as Appendix C.2 with this report.
Foundries in Kolhapur exhibit a mix of technology
installation. A majority of these Foundries (46% of
9%
9%
Cupola
36%
IF
surveyed units) are based on Cupola for production
Cupola + IF
of Hot Metal closely followed by Induction Furnace
Duplexing
based units (36%). Rest of the units (18%) have
46%
installed both Cupola
upola and Induction Furnace of
which almost half have duplexing Foundry process.1
Figure 3.1: Melting technology in
Foundries in Kolhapur
1 Source: Report on Capacity Building Needs Assessment & Sector Breakup Study by SEE-Tech
SEE
Solutions Pvt. Ltd.
PwC
37
Typical production output from these Foundries lies in the range of 1000 – 10,000 tonnes per
annum.. Melting is the most energy intensive process step and consumes as much as 70% of the
total energy input. Coke and electricity are the principal sources on energy in Foundries based
on Cupola and Induction Furnace respectively. Allied processes like mould and core baking
employ use of other fuels like diesel and LPG. Coke is available from various sources and is
priced between Rs. 28,000 - 30,000 per tonne and electricity is available from state grid at Rs
5.5 – 7.5 per kWh inclusive of demand charges.
charges
Share of energy cost in total production cost (exclusive of raw material) was studied for
surveyed Foundries and the results are mapped in Figure 3.2 below.
2%
2%
29%
< 10 %
10 - 20 %
20 - 30 %
67%
> 30 %
Figure 3.2: Share of energy cost in total production cost in Foundries in Kolhapur
It can be seen from above figure that share of energy cost remain less than 20% for almost
entire range of Foundries in Kolhapur. However, since share of other components in overall
cost of production is almost similar and largely dependent on local variables
variables, optimization of
energy cost becomes critical to stay competitive for any particular Foundry in the cluster.
generation among the target groups. Also, it is deemed important to assess the barriers faced
by the target groups in adopting Energy Efficiency measure once they reach an aware stage of
shall motivate them to adopt Energy Efficiency in their
their respective units. Insights gathered from
barrier motivator analysis shall translate in manifestation of
sections.
Effic
entrepreneurs from Kolhapur Foundry cluster were requested to rate
rate both the parameters
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38
with respect to their MSME unit on a scale of 1 to 4, four being the highest or ‘Most
Significant’. Figure 3.3 shows the distribution of response gathered from Foundry owners in
Kolhapur to rate significance of Energy Efficiency in their
their respective units.
% of respondents
.
7
7
Less Significant
Significant
0
Insignificant
86
Most significant
Figure 3.3: Perception in Kolhapur Foundry cluster on Significance of Energy
Efficiency measures
Above figure shows that 86% of the participating Foundry owners perceive Energy Efficiency
as Most Significant
ignificant with respect to their unit.
awareness regarding Energy Efficiency’ was also carried out. Figure 3.4
.4 shows the distribution
of response gathered from Foundry owners in Kolhapur to rate significance of spreading
% of respondents
Significance of spreading awareness on EE
90
0
Insignificant
5
5
Less Significant
Significant
Most significant
significant)
Figure 3.4: Perception in Kolhapur Foundry cluster on Significance of spreading
awareness on Energy Efficiency
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39
It can be seen from above figure that 90% of the participating Foundry owners believe that
spreading awareness about Energy Efficiency
fficiency is most significant to their industry unit, which is
a complementing situation to the awareness generation program and outreach
outreach strategy.
In the last 8-10
10 years, MSME owners have started investing in the power factor
controllers
MSME owners are aware on the whole, but, have concerns
since technology needs to be backed suitably with proper
processes
Only finance scheme mentioned was ‘CLCSS’…Credit
‘CLCSS’…
Linked
Capital Subsidy Scheme…
issues of concern among Foundry owner which can potentially pose hindrance in deployment
of Energy Efficiency. Participants were requested to identify barrier and motivating factors that
they perceive as affecting their field of view regarding Energy Efficiency. For the sake of
convenience,
nce, several common barriers and motivators were already listed in the questionnaire;
however, the participants were provided option of adding more to the already listed ones.
Figure 3.5
.5 shows perception of Foundry owners towards Barriers.
Barriers for implementing EE measures
Others
3
Low awareness about EE technologies
28
Non availability of reputed ESCO and energy auditor
45
Lack of confidence about new technologies
63
Lack of funding for EE projects
Energy efficiency not being a priority
Lack of incentives for implementing EE projects
20
3
22
Financial institution reluctant to provide loan
73
% of respondents
Figure 3.5: Perception in Kolhapur Foundry cluster on Barriers for implementing
Energy Efficiency
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40
It can be seen from above figure that significant barriers for Kolhapur Foundry cluster are:

Lack of confidence about new technologies (lack of demonstration projects)

Non-availability
availability of reputed ESCO and energy auditors to implement and design
projects
Although almost 73% of the respondents have expressed concerns on Financial Institutions’
reluctance to provide loan for EE as a perceived barrier,
barrier, however, during qualitative
discussions, several entrepreneurs have strongly stated that access to finance is not a barrier
once EE aspect of technology is proven. Above mentioned quantitative findings are further
supported by findings from qualitative research.
potentially motivate and favour in creation of such environment whic
which is conducive for
increasing the demand for Energy Efficiency investments in Kolhapur Foundry cluster. Figure
3.6 shows perception of Foundry owners towards Motivators for Energy Efficiency.
Motivators for promoting Energy Efficiency
4
Others
28
Financial Programmes
14
Tax incentives
78
48
Financial Incentives
% of respondents
Figure 3.6: Perception in Kolhapur Foundry cluster
cluster on Motivators for promoting
Energy Efficiency
It can be seen from above figure that Tax incentives and Financial incentives are the biggest
perceived motivators for promotion of Energy Efficiency in Kolhapur Foundry cluster.
Qualitative research reveals that in addition to incentives, upstream measures with respect to
production process and presence of support groups is a felt need in the cluster.
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41
“Moulding
Moulding and melting needs to be synchronised….save time and therefore
energy...Steel
...Steel scrap should be of better quality.”
“Any
Any Government arm who is interested in taking up the project of
monitoring
toring the operating energy efficiency levels and help with
advice for course-correction
correction are welcome”
welcome
“With
With energy efficient equipment, line of credit is supposed
to be economical, compared to other equipment”
equipment
perceived by Foundry owners. Participants were requested to list the benefits of Energy
categorization of such qualitative inputs on benefits of Energy Efficiency in Core, Augmented
and
nd Peripheral benefits as meaningful to the entrepreneurs in the cluster.
Onion Peel Techinque:
Techinque When we talk
of any initiative there are certain things
that are its core and then there are
peripherals. We can think of similarity
with onion – the core is the strongest in
terms of flavor and fades as we move
outward. Now tell us based on your
perceptions what do you think is the core
(message, benefits etc) of this EE
initiative?
Figure 3.7: Perception in Kolhapur Foundry cluster on Benefits of Energy
Efficiency
Above figure shows that cost saving on products is the core benefit of Energy Efficiency as
perceived by Foundry owners in Kolhapur. Detailed cost benefit analysis and demonstration of
technologies are possible tools to divert MSME unit owners’ attention towards EE technologies
in such scenario.
An important component of our quantitative and qualitative research is analysis of media
habits and media preferences of Foundry owners and workers in Kolhapur
Kolhapur. This section
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42
participants of Walk Through Surveys and Focussed Group Discussions.
Analysis of preferred media sources for entrepreneurs in Kolhapur Foundry cluster was
carried out as part of quantitative research. Responses of participants are ranked from 1 to
11, one being most preferred. Figure 3.8
.8 shows ranking of different media sources as
gathered from participants from Kolhapur Foundry cluster.
E-mail
Mobile messages
Seminar/workshop
Poster/banner
Newspaper
Industry journals
TV
Magazines
Radio
Website
Q: Rank the listed
to 12 for using them as
trusted source of
information for key
decisions in your unit?
1
1
3
3
3
6
6
8
8
10
11
Figure 3.8: Ranking of preferred media sources in Kolhapur Foundry cluster
It can be seen from above figure that Direct Emails and Mobile Messages are most preferred
media sources in the cluster. These are followed by participation in technology oriented
seminars/Workshops and multimedia applications like posters and banners.
ones, and to understand the media consumption habits of the target group, further analysis
of quantitative information has been conducted and presented here.
Figure 3.9
.9 shows the most popular newspaper among the participants.
% of respondents
61
47
35
27
15
11
5
Sakal
Pudhari
Lokmat
ToI
ET
Maharashtra Indian Express
Times
Figure 3.9: Preferred newspapers in Kolhapur Foundry cluster
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43
Sakal and Pudhari newspapers are positioned as most preferred newspapers among Foundry
owners in kolhapur and Times of India and Economic Times are the most preferred English
newspapers.
s. Majority of respondants prefer the front page and economic sections of
newspaper as compared to other section which include Political, Editorial, Sp
Sports, District
News and others.
FM Radio channel preference
The two major radio channels popular in Kolhapur are:

Radio Mirchi (FM 98.3 MHz)

Radio Tomato (FM 102.9 MHz)
Qualitative reseach by way of focussed discussions with Foundry owners further supported the
above mentioned findings. Foundry owners expressed following preference as their sources of
information on new technologies”

Seminars, meetings and workshops organised by industry associations in cluster

Industry magazines

Emails

Equipment manufacturers
anufacturers
“CII member, IIF members…Indo German association…
association…“there are many
seminars arranged, even workshops…..”
“Like the compressor, we call the manufacturer and ask them the
change in the technology…”
“I am talking to this gentleman, he is giving me some idea, I
am talking to him, he is given me information...
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44
Product
Many of the foundries are shifting from fuel fired cupolas, to Induction Furnace since
this offers better productivity and more precise control of temperature and chemistry.
Price
Majority of the industries surveyed have their energy cost in the range of 10 to 20% of
the total production cost. For about 29% of the industries, this ratio less than 10%.
Place
Kolhapur cluster is a prominent foundry cluster in India with majority of end products
catering to auto ancillaries and agricultural tools industries.
Promotion
There is constant pressure on units to reduce cost to increase margins. Hence, EE can
be promoted in the cluster as a measure for increasing margin.
People
Process
&
Entrepreneurs in Kolhapur have very sound educational background with more than
50% of them being engineers. Melting is most energy consuming process contributing
more than 70% of total energy consumption.
Physical
Evidence
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4. Pune Forging Cluster
4.1. Introduction
Pune Forging cluster is selected as one of the five target clusters under the Financing Energy
Efficiency at MSMEs project. PwC has conducted detailed exercise for assessment of
communication gap and needs assessment for Pune Forging cluster are presented in this
chapter.
Cluster at a glance
Pune is a major industrial centre in state of Maharashtra and also a hub for automobile
manufacturing. Pune also houses a cluster of Forging units primarily engaged in production of
auto-components and machinery components. There exist close to 160 Forging units in Pune,
concentrated in Ahmednagar, Satara, Chakan and Lonavala industrial clusters in greater Pune
region. Forging operation is an energy intensive process and requires high temperature
forming of steel products into desired shape. The Forging units function as ancillary units to
major automobile manufacturers, including Bajaj Auto, Tata Motors and DaimlerChrysler and
appliance manufactures Voltas, Videocon, Whirlpool, etc.
Forging units in Pune have organized themselves into an industrial association called
Association of Indian Forging Industry (AIFI). The association serves as a platform for
discussions on common issues as well as new research. Pune Forging cluster has presence of
several local and national scale equipment/technology suppliers. The cluster is also benefitted
by presence of technology service providers in productivity and energy efficiency improvement
sector. A Cluster Coordination Committee (CCC) with representation from multitude of
stakeholders like MSMEs, Industry Associations, Financial Institutions, etc has been created by
SIDBI, an implementing partner in the project, to closely monitor and support various Project
activities in the cluster. MITCON Consultancy and Engineering Services Ltd is entrusted with
the role of coordination of project activities in the cluster, and capacity building of MSMEs and
industry associations.
Details of mapping exercise are presented as cluster profile for Pune Forging cluster as
Appendix D.1 with this report.
Demographic study
out for Pune Forging cluster to understand distribution of following demographic

PwC
46


Sector-specific

Typical
ical working day
It is observed that English is the most preferred language and has 100%
% acceptance as spoken
language in the cluster,
cluster, followed by 86% response each to Marathi and Hindi.
Entrepreneurship is supported by high degree of technical education and
and 5
51% of entrepreneurs
hold graduate degree in Engineering in the collective 75%
% graduation level. 62% entrepreneurs
have more than 10 years experience in Forging operations and hence possess deep insights
related to day-to-day
day affairs in Forging sector. Details of demographic study survey are
presented as demographic profile of Pune Forging cluster as Appendix D
D.2 with this report.
Reheating and forming (hammering) of billets and ingots constitutes major share of total
energy consumption in Forging units. Piped Natural Gas (PNG)
NG) and E
Electricity are the
principal sources on energy in Forging units. A small segment of Forging units is also based on
Furnace Oil (FO) fired reheating furnaces. However, the share of such FO based units is on a
declining trend. Recent availability of Natural Gas from Indian Oil has helped the Forging units
to improve process parameters by way of better control
control over firing and combustion. Figure 4.
4.1
shows the share of energy cost in overall production cost (exclusive of raw material) for
participating Foundry units in Pune.
12%
41%
26%
< 10%
10 - 20%
20 - 30%
21%
>30%
Figure 4.1: Share of energy cost in total production cost in Forging units in Pune
It can be seen from above figure that share of energy cost remain more than 20% for more than
60% of Forging units in Pune. However, it is also evident there exist significant variation in
energy cost among the Forging units. Since
Since share of other components in overall cost of
production is almost similar and largely dependent on local variables, optimization of energy
cost becomes critical to stay competitive for any particular Forging unit in the cluster.
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47
In an analogy to behaviour of consumers to adoption of new products, Limekiln owners are
treated as “consumers” to study trends in response towards new product “Energy Efficient
Technologies”. Simple but effective tools are employed to identify
identify a number of factors which
are likely to govern any typical Forging unit owner’s response towards question of adoption of
Following Box presents an example of response
response from survey participants against simulated
situation (similar to actual working environment) posed before them.
Likely to Adopt
Not Likely to Adopt
•Risk
Risk takers, ready to adopt and survive
•Not ready to invest
•Competitive,
Competitive, ambitious, ready to
upgrade and survive the race
•Not risk-taking;
taking; provide multiple
excuses like recession, tried and tested
method etc.
•Progressive management
•Aware
Aware of global requirements on
standards and practices for production
•In
In sync with customers, and hence
aware of growing demands
•‘Sluggish’
‘Sluggish’ management
•Not
Not exposed to the technological
developments across globe
•May
May be in ‘monopoly’ market using
some innovative technology
The ones, who are competitive, and ready to brave the global market, are likely to adopt energy
efficient technologies.
generation among the target groups. Also, it is deemed
deemed important to assess the barriers faced
shall motivate them to adopt
adopt Energy Efficiency in their respective units. Insights gathered from
sections.
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48
entrepreneurs from Pune Forging cluster were requested to rate both the parameters with
respect to their MSME unit on a scale of 1 to 5, five being the highest or ‘Most Significant’.
Figure 4.3
.3 shows the distribution of response gathered from Forging unit owners in Pune to
rate significance of Energy Efficiency in their respective
respe
units.
% of respondents
46
29
20
6
0
Insignificant
Less Significant
Moderately
Significant
Significant
Most Significant
Figure 4.3: Perception in Pune Forging cluster on Significance of Energy
Efficiency measures
Above figure shows that 49% of the participating Forging unit owners perceive Energy
Efficiency as Significant or above with respect to their unit.
of response gathered from Forging owners in Pune to rate significance of spreading awareness
regarding Energy Efficiency in industry.
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49
Significance of Awarenss on Energy Efficiency
57
31.5
6
5.7
Less Significant
Moderately
Significant
0
Insignificant
Significant
Most Significant
significant)
Figure 4.4: Perception in Pune Forging cluster on Significance of spreading
It can be seen that 89%
% of the participating Forging unit owners believe that spreading
awareness about Energy Efficiency is either Significant or Most Significant to their Forging
unit, which is a complementing situation to the awareness generation program and outreach
strategy.
issues of concern among Forging unit owner which can potentially pose hindrance in
deployment of Energy Efficiency. Participants were requested to identify barrier and
motivating factors that they perceive as affecting their field of view regarding Energy
Efficiency. For the sake of convenience,
convenience, several common barriers and motivators were already
listed in the questionnaire; however, the participants were provided option of adding more to
the already listed ones.
Figure 4.5
.5 shows perception of Forging unit owners towards Barriers.
PwC
50
Barriers towards implementation of EE measures
Low awareness about EE
80
Lack of fianance
60
Lack of incentives
53
Reluctance of FIs towards EE projects
50
Non--availability of ESCOs
48
Lack of confidence in new technologies
43
EE not a priority
Others
38
3
% of respondents
Figure 4.5: Perception in Pune Forging cluster on Barriers for implementing
Energy Efficiency
It can be seen from above figure that significant barriers for Pune Forging cluster are:


Lack of finance/incentives

Lack of confidence about new technologies (lack of demonstration projects) and lack of
customized financing options for EE
research.
“Once the technology proved their efficiency or their capability…. the next unit
will always like to have such technology….”
“Second one is finance and I don’t think finance is the problem with the
majority of the unit except the micro units but many of the units are keen
to upgrade their units with respect to the energy efficient technology
technology”
“The process is not simplified…you have
ha to go with
documentation...In one-go
one
you can’t get the loan…”
increasing the demand for Energy Efficiency investments in Pune Forging cluster. Responses
largely indicatee that Financial and Tax incentives are most effective motivating factors for
promotion and adoption of EE measures. Important and representative snippets from
discussions with Forging unit owners as part of qualitative research are
are presented below.
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51
“The benefit in terms of interest rates whatever the finance is available, they
are taking the benefit……”
Rebate in monthly bill by MSEB “ They give rebate in all monthly
bills……..There is a PF meter to monitor it…… They monitor it…….”
“There is one more scheme in which if you work in night
then you will get subsidy. …Re1 per unit….”
“Citi Bank got a special scheme called ‘Panchaika…’”
perceived by Forging unit owners. Participants were requested to list the benefits of Energy
Efficiency as understood by them at different levels of utility perception
perception. Figure 4.6 shows
Onion Peel Techinque: When we talk of any initiative
there are certain things that are its core and then there
are peripherals. We can think of similarity with onion –
the core is the strongest in terms of flavor and fades as we
move outward. Now tell us based on your perceptions
what do you think is the core (message, benefits etc) of
this EE initiative?
Figure 4.6: Perception in Pune Forging cluster on Benefits of Energy Efficiency
Above figure shows that cost saving on products is the core benefit of Energy Efficiency as
perceived by Forging unit owners
owner in Pune. However, there also exists deeper understanding of
augmented and peripheral benefits
bene
among the entrepreneurs. Detailed cost benefit analysis
and demonstration of technologies are possible tools to divert MSME unit owners’ attention
towards EE technologies in such scenario.
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52
habits and media preferences of Forging unit owners and workers in Pune. This section
Analysis of preferred media sources for entrepreneurs in Pune Forging cluster was carried out
as part of quantitative research. Responses of participants are ranked
ranked from 1 to 11, one being
most preferred. Figure 4.7 shows ranking of different media sources as gathered from
participants from Pune Forging cluster.
Emails
1
Mobile SMSes
1
Seminar/Workshops
Q: Rank the listed
information for key
decisions in your
unit?
3
Poster/Banners
4
Newspapers
4
Magazines
TV
Industry…
Industry Journals
Social…
6
7
7
9
9
FM Radio
11
Figure 4.7: Ranking of preferred media sources in Pune Forging cluster
It can be seen from above figure that Direct Emails,
Emails Mobile SMSes and technology oriented
Seminars and Workshops are the most preferred sources for information in the cluster. These
are followed by participation multimedia sources like Television, Newspapers and applications
like posters and banners.
ones, and to understand the media consumption habits of the target group, further analysis of
quantitative information has been
bee conducted and presented here.
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53
Figure 4.8 shows the most popular newspaper among the participants.
% of respondents
59
41
14
16
14
8
TOI
Sakal
ET
Pudhari
Indian
Express
5
5
5
HT
Loksatta
Lokmat
Others
Figure 4.8:: Preferred newspapers in Pune Forging cluster
Times of India and Economic Times newspapers are positioned as most preferred English
newspapers among Forging unit owners in Pune and Sakal is the most preferred Marathi
newspaper.. Majority of respondants prefer the front page and economic sections of newspaper
as compared to other section
section which include Political, Editorial, Sports, District News and
others.
Qualitative reseach by way of focussed discussions with Forging unit owners further supported
the above mentioned findings. Forging unit owners expressed following preference as thei
their
sources of information
n on new technologies.

Journals for Forging industry

ASN- Quarterly magazine

Internet: Google, Bureau of Energy Efficiency

Financial papers

Government Circulars
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54
Product
The products manufactured are mainly auto components like crankshaft, connecting
rods, cam shafts etc. A recent trend of CNG based furnaces has started recently in the
cluster resulting in improved quality and reduced losses.
Price
Energy cost (furnace oil and electricity) varies between 5% to 20% depending on
operation of Forging unit.
Place
Pune cluster is a prominent forging cluster in India’s map with majority of end
products catering to auto units.
Promotion
Addressing key barriers - Low awareness about EE technologies, and Lack of
confidence about new technologies (lack of demonstration projects) , shall be
conducive in promoting EE in cluster
People
&
Entrepreneurs in Pune have very sound educational background with more than 35%
Process
of them being engineers.
Physical
Evidence
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5. Ankleshwar Chemicals Cluster
5.1. Introduction
Ankleshwar Chemicals cluster is selected as one of the five target clusters under the Financing
communication gap and needs assessment for Ankleshwar Chemicals cluster are presented in
this chapter.
Cluster at a glance
Ankleshwar is the largest cluster of Chemicals manufacturing MSME units in India. There exist
close to 700 Chemical units in Ankleshwar, engaged in manufacturing of various industrial and
other chemical based products like pesticides, pharmaceuticals components, bulk drugs,
petroleum products, textile pigment and Dyes, plastics, rubber, packaging material and so on.
Chemical manufacturing processes are typically very specialized one and depend largely on the
end product required. However, several common energy consuming steps like crushing,
mixing, centrifuge, drying, etc, are commonly employed across Chemical units.
Chemical units in Ankleshwar have organized themselves into an industrial association called
Ankleshwar Industries Association (AIA). AIA has strong presence in the cluster and serves as
a platform for discussions on common issues as well as new research. Ankleshwar Chemicals
cluster is connected to several local and national scale equipment/technology suppliers. The
cluster is also benefitted by presence of technology service providers in productivity and energy
efficiency improvement sector. A Cluster Coordination Committee (CCC) with representation
from multitude of stakeholders like MSMEs, Industry Associations, Financial Institutions, etc
has been created by SIDBI, an implementing partner in the project, to closely monitor and
support various Project activities in the cluster. Cluster Pulse is entrusted with the role of
coordination of project activities in the cluster, and capacity building of MSMEs and industry
associations.
Details of mapping exercise are presented as cluster profile for Ankleshwar Chemicals cluster
as Appendix E.1 with this report.
Demographic study
out for Ankleshwar Chemicals cluster to understand distribution of following demographic


PwC
56

Sector-specific

Typical working day
It is observed that Gujarati and Hindi are the most preferred language and have 100%
acceptance as spoken language in the cluster, followed by 44% response to English and 11% to
Marathi. Entrepreneurship is supported by high
high degree of formal education and majority of
entrepreneurs hold graduate and above degrees. Details of demographic study survey are
presented as demographic profile of Ankleshwar Chemicals cluster as Appendix E.2 with this
report.
Grinding and mixing, pumping, centrifuge and drying are the principal energy consuming
steps in chemical processes. Electricity and LNG are the principal sources of energy to drive
various electrical equipment/motors and dryers/heaters. Electricity is available from state
electricity board at approx. Rs 6 / kWh inclusive of demand charges. LNG is supplied by
Gujarat Gas Company Ltd. and is priced at Rs. 26 - 29/ SCM for the contract demand. There is
generally very limited
ted usage of DG sets since availability of power is reliable.
Figure 5.1
.1 shows the share of energy cost in overall production cost (exclusive of raw material)
for participating Chemical units in Ankleshwar.
1%
< 10 %
48%
51%
10 - 20 %
20 - 30 %
> 30 %
Figure 5.1: Share of energy cost in total production cost in Chemical units in
Ankleshwar
Additionally, share of energy cost in total production cost also depends on the type of Chemical
unit, for example:

Pharmaceutical :
< 5%

Pigment:
7-8%

Pesticide:
5-10%

Inorganic compounds:
10-20%

Ice:
90% (however, volume wise it is <1% in the cluster)
PwC
57
In an analogy to behaviour of consumers to adoption of new products, Chemical unit owners
are treated as “consumers” to study trends in response towards new product “Energy Efficient
are likely to govern any typical Chemical unit owner’s response towards question of adoption of
situation (similar to actual working environment) posed before them.
Likely to Adopt
•Younger, 25-35
35 yrs, Graduate, may be
an Engineer
•Cultured,
Cultured, honest, committed
•Currently
Currently does not have high profit
margin
•‘Has
‘Has money’…. Not in any financial
crunch
•In
In search of competitive edge
•May
May be in Chemical or Pharma…as it is
easiest to adopt there
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Not Likely to Adopt
•Runs
Runs a high profit making company
•‘Copy Master'
•Have
Have over 25 yrs of experience in the
sector
•Is
Is used to the system and will resist
change
•Over
Over 50 yrs, settled in life with family
•Earns
Earns over Rs 50 L in a year
58
 Proactively searching for the
 Keeps track of
latest technology options
technologies &
measures like
 Keeps track of evolving
WHR
for dryers
technologies like efficient
etc.
dryers, boilers, WHR etc.
 Interested in
 May have already
adopting new
experimented with some
technologies and
measures like efficient
efficiency
retrofits, efficient dryers etc.
measures
 May be an industry with low
 However, will not
profit margins and cutinitiate change
throat competition. Needs to
unless
technology
be innovate to improve
/ measure is
bottom line
proven &
 Usually commands a larger
demonstrated
market share
 Employs more qualified
staff, good systems and
processes
 Does not
 Financially better off, may
proactively seek
be enjoying relatively
new technologies
better economies of scale
and efficiency
 May be an industry with
measures
good profitability like
 Waits for a
pharmaceuticals
technology to
 Decision makers may be
mature to a point
where it is
thoroughly
approach. Believe in
demonstrated
and becomes
tested methods “…have
relatively cheap
over 25 years of
experience in the
sector…”
technology / measure has
matured to the “tried and
tested” stage
sections.
Effic
entrepreneurs from Ankleshwar Chemicals cluster were requested to rate both the parameters
Figure 5.2 shows the distribution of response gathered from Chemical unit owners in
Ankleshwar to rate significance
ignificance of Energy Efficiency in their respective units.
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67
% of respondents
28
4
Insignificant
Less Significant
Moderately
Significant
0
1
Significant
Most Significant
Figure 5.2: Perception in Ankleshwar Chemicals cluster on Significance of Energy
Efficiency measures
As a surprising outcome, 95%
95 of the participating Chemical unit owners perceive Energy
Efficiency as either Insignificant
ignificant or Less Significant with respect to their unit.
awareness regarding Energy Efficiency’ was also carried out. Figure 5.3 shows the distribution
of response gathered from Chemical unit owners in Ankleshwar to rate ssignificance of
spreading awareness regarding Energy Efficiency in industry.
42
Significance of Awareness on Energy Efficiency
% of respondents
34
18
4
Insignificant Less Significant
Moderately
Significant
Significant
2
Most
Significant
significant)
Figure 5.3: Perception in Ankleshwar Chemicals cluster on Significance of
spreading awareness on Energy Efficiency
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Similar to the response on Significance of Energy Efficiency, itt can be seen that 74% of the
participating Chemical unit owners believe that spreading awareness about Energy Efficiency
is either Insignificant
ignificant or Less Significant to their industry. Discussions with Chemical unit
owners in the cluster as part
part of qualitative reseach provided some insights to account for such
skewed perceptions in the cluster:

The cluster has witnessed mandatory energy audits, and walkthrough energy audit
schemes. However, general perception prevails that the audits were conducted
superficially and did not provide any effective and implementable suggestions for the
units. This has left a bad taste and a perception that Energy Efficiency is largely
amandatory and fruitless exercise and does not pay off.

Energy costs are less
ss than 10% of total production costs for a significant number of units.
“…they superficially just worked through the audit; somehow finished it
...took a seal from us...it
us.. was just like completing a formal requirement
requirement”
“Association
Association had earlier appointed
appointed a retired GEB official as
consultant who used to check the electricity bills and help in course
correcting to improve efficiency….With his advice many MSME units
have installed capacitors and now maintain an efficiency of .99
.99”
Such a scenario presents a challenge towards the media and outreach activities and at the same
time a strong need for the same too.
Barriers and Motivators perception check was carried out during the survey tto identify the
issues of concern among Chemical unit owner which can potentially pose hindrance in
motivating factors that they perceive as affecting their field of view rregarding Energy
Efficiency. For the sake of convenience, several common barriers and motivators were already
Figure 5.4 shows perception of Chemical unit owners towards Barriers.
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Financial institution reductant to provide loans
0
1
Non-availability
availability of ESCO / energy auditors
2
Lack of incentives
3
EE not priority
16
Lack of financing
31
44
% of respondents
Figure 5.4: Perception in Ankleshwar Chemicals cluster on Barriers for
It can be seen from above figure that significant barriers for Ankleshwar
hwar Chemicals cluster are:


Lack of financing for EE projects

EE not a priority for MSME owners
Above mentioned quantitative findings are further supported by findings
findings from qualitative
research as presented below.

Production output and commercial interests are the prime movers for operations in the
clusters. Therefore, any projects for modification, retrofitting and equipment
replacement for improving EE remain on backburner.

Many of the MSME entrepreneurs have started their Chemical unit with simple
replication of production processes from their earlier employment. The phenomenon
reflects in lack
ack of innovation
innovati
and inertia against adoption of more efficient
technologies.

Comparative data for energy efficiency for different processes or
or components thereof is
not available and hence informed decision making becomes all the more difficult
...while
while a boiler from a large manufacturer like Thermax
gives a 90-95%
95% efficiency, locally made ones may actually
deliver around just 60-65%...i.e.
60
no specified operating range
potentially motivate and favour in creation
creation of such environment which is conducive for
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increasing the demand for Energy Efficiency investments in Ankleshwar Chemicals cluster.
Figure 5.5 presents the perception check on motivating factors for Ankleshwar Chemicals
cluster.
3
Others
Tax Incentives
6
1
18
67
% of respondents
Figure 5.5: Perception in Ankleshwar Chemicals cluster on Motivators for
Responses largely indicate that Financial and Tax incentives are most effective motivating
factors for promotion and adoption of EE measures.
“…we are supposed to change the mind, attitude will not
change today itself….(at present) there is no incentive….and
no compulsion also (to pursue energy efficiency)”
On similar lines, qualitative research also focussed on benefits of Energy Effi
Efficiency as
perceived by Forging unit owners. Participants were requested to list the benefits of Energy
categorization of such qualitative inputs on benefits of Energy
Energy Efficiency in Core, Augmented
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Onion Peel Techinque:: When we talk of any initiative
this EE initiative?
Figure 5.6: Perception in Ankleshwar Chemicals cluster on Benefits of Energy
Efficiency
Above figure shows that generation of more income by increased productivity and cost saving
are the core benefit of Energy Efficiency as perceived by Chemical unit owner in Ankleshwar.
However, there also exists deeper understanding of augmented and peripheral be
benefits among
the entrepreneurs
rs like reduction on CO2 emissions, improved workplace environment and so
on.
habits and media preferences of Chemical unit owners and workers in Ankleshwar. This
section presents outcome of analysis of media preferences and media consumption ha
habits of
Analysis of preferred media sources for entrepreneurs in Ankleshwar Chemicals cluster was
carried out as part of quantitative research. Responses of participants
participants are ranked from 1 to 11,
one being most preferred. Figure 5.7
5. shows ranking of different media sources as gathered
from participants from Ankleshwar Chemicals cluster.
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Q: Rank the listed
information for key
decisions in your
unit?
1
Magazines
2
Emails
2
Industry Journals
4
Seminars/Workshops
5
Mobile Messages
6
Newspapers
7
Posters/Banners
8
Radio
9
TV
10
Website/Social Networking
11
Figure 5.7: Ranking of preferred media sources in Ankleshwar Chemicals cluster
It can be seen from above figure that Interaction
nteraction with Industry Association
Association, sector specific
magazines and newsletters and direct emails are the most preferred sources for information in
the cluster. These are followed by participation in technology oriented Seminars/Workshops
eminars/Workshops ,
Mobile Messages, Newspapers and applications like posters and banners.
ones, and to understand the media consumption habits
habit s of the target group, further analysis of
Figure 5.8 shows the most popular newspapers
newspaper among the participants.
% of respondents
63
23
6
Gujarat
Samachar
Sandesh
TOI
2
Divya
Bhaskar
Figure 5.8: Preferred newspapers in Ankleshwar Chemicals cluster
Gujarat Samachar and Sandesh are positioned as most preferred newspapers among Chemical
unit owners in Ankleshwar.
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Television preference
Figure 5.9 shows the most popular Television channels among the participants.
% of respondents
78
30
SAB TV
News
8
5
All
Movie
10
6
8
Discovery/Nat
Geo
Lyf OK
Star plus
Figure 5.9: Preferred Television channels in Ankleshwar Chemicals cluster
New channels and entertainment channles like SAB are most popular among entrepreneurs in
Ankleshwar Chemicals cluster.
Product
Gas fired Boiler and Thermopacs, Tray Dryers, Fluidized Bed Dryers are commonly
perceived EE technologies.
Price
A substantial 4% of total
total cost of production is spent (almost half of share of energy
cost) while conforming to EMS standards, which makes pricing less competitive than
in other competing chemical clusters.
Place
Entrepreneurs are not in a position to expand production capacity due to strict GPCB
norms for waste water & stack emissions.
Promotion
profitability, competitive advantage, pollution control, improvements in workplace
conditions
ns can be key to promote EE
People
Process
&
Many of the Entrepreneurs have an experience of more that 10 to 15 years. There exists
perception of laborious paperwork and therefore frustration, in interactions with
public institutions
Physical
Highlighting key messages and best practices etc. through visual means like charts and
Evidence
posters, are an effective means of awareness creation among the workers and grass
roots levels in units. Use of vernacular language and Liberal use graphics will aid
assimilation
imilation of ideas.
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6. Faridabad Industrial Cluster
6.1. Introduction
Faridabad Industrial cluster is selected as one of the five target clusters under the Financing
communication gap and needs assessment for Faridabad Industrial cluster are presented in
this chapter.
Cluster at a glance
Faridabad is the one of the largest industrial cluster of MSME units in India. There exist close
to 7,500 MSME units in Faridabad which belong to a highly diverse array of industrial sectors
ranging from Iron and Steel, non-ferrous metals and alloys, plastic, rubber, textiles, packaging
and printing and so on. Almost all primary production processes – Foundry, Forging,
Extrusion, etc, and allied downstream operations – machining, sheet metal, electroplating, etc,
are predominantly existent in the cluster. As a result, the MSME units in Faridabad cannot be
categorized under any particular industrial sector, and rather Faridabad houses a mixed
industrial cluster with principal industrial sectors being Foundry, Forging, Sheet Metal,
Machining and Light Engineering, Plastics, Rubber, Textiles, Adhesives and Machine Tools.
MSME units in Faridabad have organized themselves into several industry associations based
on institutional alliances, geographical proximity and sector-specific activity. Major industry
associations in Faridabad are listed below:

Faridabad Small Industries Association (FSIA)

Faridabad Industries Association (FIA)

Laghu Udhyog Bharti

Faridabad Manufactures Association (MAF)

Faridabad Chamber of Commerce & Industries(FCCI)

Faridabad Foundry Association

Faridabad small scale pollution control cooperative society (caters to the electroplating
zone)
Each of these industry associations has strong presence within its respective domain and serves
as a platform for discussions on common issues as well as new research. There is also strong
network of national and international equipment/technology suppliers. The cluster is also
benefitted by presence of technology service providers in productivity and energy efficiency
improvement sector. A Cluster Coordination Committee (CCC) with representation from
multitude of stakeholders like MSMEs, Industry Associations, Financial Institutions, etc has
been created by SIDBI, an implementing partner in the project, to closely monitor and support
various Project activities in the cluster. IamSMEofIndia is entrusted with the role of
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coordination of project activities in the cluster, and capacity building of MSMEs and industry
associations.
Details of mapping exercise are presented as cluster profile for Faridabad Industrial cluster as
Appendix F.1 with this report.
Demographic study
It is observed that Hindi and English are the most preferred language and have 100% and 95%
acceptance as spoken language in the cluster. Entrepreneurship is supported by high degree of
formal education and majority of entrepreneurs hold graduate and above degrees. Details of
demographic study survey are presented as demographic profile of Faridabad Industrial cluster
as Appendix F.2 with this report.
Since Faridabad Industrial cluster comprises of several industrial sectors, any particular energy
consumption profile cannot represent the entire spectrum of MSME units in Faridabad.
Electricity, Diesel, Furnace Oil and LNG are the principal sources of ene
energy to drive various
electrical equipment/motors, furnaces and dryers/heaters. Electricity is available from state
electricity board Dakshin Haryana Bijli Vitran Nigam (DHBVN) at approx. Rs 6 / kWh
inclusive of demand charges. Furnace Oil is supplied by local
cal vendors of various petroleum
companies.
Erratic supply of electricity, frequent and long power outages are common issues reported by
participating MSME units during the survey. Diesel is almost universally accepted as primary
energy source (equivalent to electricity) to power DG Sets in any typical MSME unit in the
cluster.
Figure 6.1
.1 shows the share of energy cost in overall production cost (exclu
(exclusive of raw material)
for participating MSME units in Faridabad.
15.22%
6.52%
4.35%
2.17%
71.74%
0 - 10 %
11 - 20 %
21 - 30 %
31 - 40 %
> 40 %
Figure 6.1: Share of energy cost in total production cost in MSME units in
Faridabad
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In an analogy to behaviour of consumers to adoption of new products, Chemical unit owners
are treated as “consumers” to study trends in response towards new product “Energy Efficient
are likely to govern any typical MSME
MSME unit owner’s response towards question of adoption of
situation (similar to
o actual working environment) posed before them.
Discussion Point: Suppose there are two people SRIRAM and
GANESHAN. Both are aware of the EE initiatives. Shriram adopts but
Ganeshan does not adopt EE initiatives. Describe to me both Shriram and
Ganeshan.
Likely to Adopt
•Educated entrepreneur
•Belongs
Belongs to a systematic (structured)
organization that innovates
•Operates
Operates in a competitive market
•Intelligent
Intelligent enough to perceive benefits
•Can
Can belong to any age group but more likely
to be in the 30s
Not Likely to Adopt
•Operates
Operates in a monopolistic market
•Has
Has been in the business for a long while
•Resistant to change
•Does
Does not consider long term perspectives
•Unable
Unable to invest due to some family or
financial problems
 Proactively searching for  Keeps track of  Does
not
the
latest
technology technologies
proactively seek
options
 Interested
in new
 Talking to vendors, seeking adopting
new technologies
efficiency
out information
technologies and and
measures
 Keeps track of evolving efficiency
measures
 Waits
for
a
technologies
to
will technology
 Likely to be actively  However,
initiate mature to a
involved in technology not
unless point where it’s
uptake efforts through change
technology
is cost benefit is
industry association
thoroughly
practically
 May
have
already
demonstrated
demonstrated
experimented with some
and
becomes
measures like efficient
relatively cheap
retrofits, better design etc.
 May be smaller
 Financially better off, may
in
scale
of
be enjoying relatively better
operations
economies of scale
 Usually command a larger
market share
 Employs more qualified
staff
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 May
have
financial
difficulties and hence
averse to taking even
calculated risks
 Decision
ecision makers may be
approach. Believe in
tested methods “…aged
between 65 to 70 yrs…”
 May be very small in
scale of operations
 May not have a large
market share
technology
ology / measure
has matured to the “tried
and tested” stage
69
sections.
Effic
entrepreneurs from Faridabad Industrial cluster were requested to
to rate both the parameters
Figure 6.2 shows the distribution of response gathered from MSME unit owners in Faridabad
% of respondents
to rate significance of Energy Efficiency
Efficien in their respective units.
52
23
17
6
2
Insignificant
Less Significant
Significant
More Significant
Most Significant
Figure 6.2: Perception in Faridabad Industrial cluster on Significance of Energy
Efficiency measures
75%
5% of the participating MSME unit owners perceive Energy Efficiency as either More
Significant or Most Significant with respect to their unit.
of response gathered from MSME unit owners in Faridabad to rate significance of spreading
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71
% of respondents
Significance of Spreading Awareness on EE
17
4
0
Insignificant
Less Significant
8
Significant
More Significant
Most Significant
significant)
Figure 6.3: Perception in Faridabad MSME cluster on Significance of spreading
Similar to the response on Significance of Energy Efficiency, it can be seen that 88% of the
participating MSME unit owners believe that spreading awareness about Energy Efficiency is
either More Significant
ignificant or Most Significant to their industry. Such a sc
scenario presents a
complementing situation the media and outreach in the cluster.
issues of concern among MSME unit owner which can potentially pose hindrance in
motivating factors that they perceive as affecting their field of view regarding Energy
Efficiency. For the sake of convenience,
convenience, several common barriers and motivators were already
Figure 6.4
.4 shows perception of MSME unit owners towards Barriers.
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Others
3
Availability of reliable local service providers
Financial institution reductant to provide loans
28
16
26
Non-availability
availability of ESCO / energy auditors
49
Lack of incentives
EE not priority
47
22
Lack of financing
38
71
% of respondents
Figure 6.4: Perception in Faridabad Industrial cluster on Barriers for
It can be seen from above figure that significant barriers for Faridabad Industrial cluster are:


Non-availability of ESCOs and Energy Auditors

Lack of incentives for implementing EE measures
research.
"Absence of benchmarks at industry or cluster level, no
proof or lack of authentication of claims by vendors"
“….I have been taught, told and informed,…but actually I
do not know what is going on inside (machine)…”
"MSMEs, who are not members with the associations
have little or no knowledge about energy efficiency"
"While fire and insurance certifications are mandatory while applying for
finances from financial institutions, energy audits and norms are not
so,….hence never on priority"
“ …most of them (MSMEs), the average monthly cost of power, because they
have not been monitoring daily diesel consumption or monthly electricity
cost….so they don’t know at the end of the month, what was the average
specific consumption…”
increasing the demand for Energy Efficiency investments in Faridabad Industrial cluster.
Figure 6.5
.5 presents the perception check
check on motivating factors for Faridabad Industrial cluster.
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Others
4
17
21
Tax Incentives
43
55
% of respondents
Figure 6.5: Perception in Faridabad Industrial cluster on Motivators for
Responses largely indicate that Financial and Tax incentives are most effective motivating
factors for promotion and adoption of EE measures.
perceived by Forging unit
unit owners. Participants were requested to list the benefits of Energy
Onion Peel Techinque: When we talk of any initiative
this EE initiative?
Figure 6.6: Perception in Faridabad Industrial cluster on Benefits of Energy
Efficiency
Above figure shows that generation cost saving by reduction in energy cost is the core benefit of
Energy Efficiency as perceived by MSME unit owner in Faridabad.. However, there also exists
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deeper understanding of augmented and peripheral benefits among the entrepreneurs like
access to better markets and energy saving for future generation.
habits and media preferences of MSME unit owners and workers in Faridabad. This section
Analysis of preferred media sources for entrepreneurs in Faridabad Industrial cluster was
carried out as part of quantitative research. Responses of participants
participants are ranked from 1 to 11,
one being most preferred. Figure 6.7 shows ranking of different media sources as gathered
from participants from Faridabad Industrial cluster.
Emails
Newspapers
Mobile Messages
Q: Rank the listed
information for key
decisions in your
unit?
Seminars/Workshops
TV
Industry Journals
Magazines
Posters/Banners
Website/Social Networking
Radio
1
2
2
3
4
5
6
7
7
9
10
Figure 6.7: Ranking of preferred media sources in Faridabad Industrial cluster
It can be seen from above figure that Interaction with Direct emails, Newspapers and Industry
Association are the most preferred sources for information in the cluster. These are followed by
participation in technology oriented Seminars/Workshops , Mobile Messages, Television and
applications like posters and banners.
ones, and to understand the media consumption habits of the target group, further analysis o
of
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Figure 6.8
.8 shows the most popular newspapers among the participants.
% of respondents
33
27
24
5
HT
ET
TOI
5
2
Navbharat
Times
3
2
Mail Today
Dainik Jagran Dainik Bhaskar
Others
Figure 6.8: Preferred newspapers in Faridabad Industrial cluster
Times of India, Hindustan Times and Economic Times and positioned as most preferred
English newspapers while NavBharat Times and Dainik Jagran are most preferred Hindi
newspapers among MSME unit owners in Faridabad.
Television preference
Figure 6.9
.9 shows the most popular Television channels among the participants.
27
% of respondents
22
10
10
10
7
Aaj Tak
NDTV
CNBC
Zee Zee News
business
Star
News
5
Times
now
3
CNN
2
2
2
2
BBC
DD News
ETV
IBN
Figure 6.9: Preferred Television channels in Faridabad Industrial cluster
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Product
Iron & Steel, non-ferrous metals and alloys, plastic, rubber, textiles are the major
products from industrial sectors like Foundry, Forging, Sheet Metal, Light
Engineering, Injection Moulding, Dyeing, packaging and printing, etc.
Price
There exists marked willingness to invest in EE technologies which have attractive
payback period.
Place
Faridabad Industrial cluster has presence of all major national and internation
technology and equipment suppliers, along with service providers for EE.
Promotion
profitability, competitive advantage, pollution control, improvements in workplace
conditions can be key to promote EE
People
Process
&
Most likely adopters of new technology would be the younger MSME owners who are
open to new technology trends, and do not have financial crunch. There exists
perception of laborious paperwork and therefore frustration, in interactions with
public institutions
Physical
Evidence
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7. Communication gaps and needs
analysis
Communication gaps and needs analysis is integral to the theme and objective of the Phase – I
of the present assignment. Based on the detailed qualitative and quantitative research in each
of the five target cluster, Insights have been developed for common pointers as well as clusterspecific pointers. Communication gap or opportunity to outreach against each of such pointers
is identified along with the Communication need to address such communication gaps.
7.1. Common Communication gaps and needs
Following Table 7.1 presents the Communication Gap and corresponding Communication
Need identified for common insights and findings across the target cluster.
Table 7.1: Communication gaps and needs analysis for common findings
Insight
Gap / Opportunity
Communication need
Awareness Generation and Capacity Building Activities
Awareness Needs of Industries
Across clusters, there is preliminary
awareness on the need for Energy
Efficiency.
Everyone has been hearing about
energy efficiency, but there is a
dearth of credible information on
the benefits, as well as resources to
achieve energy efficiency.
Technology Vendors and LSPs
Lack of reputed (knowledgeable /
appropriate) Technology Vendors
and technically sound energy
auditors, ESCOs and Transition
Management Consultants
Low awareness level on actual
implementation details of EE
in relevance to the particular
industry and cluster needs
immediate attention.
Create Top Of Mind awareness
Need for a more proactive
involvement of Technology
Vendors and technically
sound energy auditors,
ESCOs and Transition
Management Consultants
Encourage vendors participation in
info-educating the cluster thus
empowering the cluster towards an
informed decision making
Need to Inform and Educate on
ways and means to achieve energy
efficiency – available technology,
retrofits, operational practices etc.
Mapping of vendor info-database
for dissemination among MSMEs
Other Stakeholders (DIC, CCC, IA’s, District Administration, etc.)
Advisory role foreseen from other
Greater role of other
Critical to retain their interest and
stakeholders
stakeholders to encourage
cooperation
and motivate adoption of
Encourage regular updates on
energy efficiency in years to
project status and activities,
come.
benefits envisaged for the cluster
from MSMEs.
Activities to increase EE investments
Demonstration of EE Technology
Low on involvement, energy
There is dearth of successful
efficiency is almost never a priority
demonstration of tangible
financial benefit through
adoption of energy efficiency
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Communication to reassure MSMEs
on suitability of energy efficiency
for their individual units
Identify early adaptors and focus on
their needs and concerns
77
Insight
Gap / Opportunity
Communication need
Create opportunities for practical
demonstration
Propagation of Case Studies as the
implementation happens during the
course of the project.
Facilitating the Financing of Energy Efficiency
Lack of schemes, laborious process
Lack of Sensitization of Banks
and paperwork requirements, lack
and FIs and their human
of empathy form FI personnel,
interface
investment for up-gradation to EE
technology
Sensitization of financial
institutions and human interface
Motivate banks and FIs to arrive at
simplified, user-friendly processes
Scope to incorporate CRM modules
on part of Banks and FIs for
smoother transition to energy
efficiency
Knowledge Management
Benchmarks, dissemination
Across clusters there is a need for
information on Benchmarks,
Measurement and Verification
Systems
Lend credibility and instil
confidence in energy
efficiency measures and
technologies
Inform and Educate on benchmarks
available or generated through the
project development component
on measurement and verification
systems and their significance
7.2. Communication gaps and needs for Tirunelveli
Limekilns cluster
Need identified for insights and findings specific to Tirunelveli Limekilns cluster in addition to
common findings.
Table 7.2: Communication gaps and needs analysis for Tirunelveli Limekilns cluster
Insight
Gap / Opportunity
Communication need
Need for Demonstration of EE Technology
Lack of successful
efficiency is almost never a priority
demonstration of energy
efficiency technology and
practices suited to the local
conditions of the cluster
No ‘touch and feel’ of EE
Technology
Communication to reassure MSMEs
on suitability of energy efficiency
for their individual units
Identify early adaptors and focus on
their needs and concerns
Create opportunities for practical
demonstration
Propagation of Case Studies as the
implementation happens during the
course of the project.
Financial Schemes and Policies
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Insight
Around 10 -15 applicants have
applied for GoI aid under MSE-CDP
scheme for setting up of VSK unit.
Application faced some issues, and
is presently under review.
Gap / Opportunity
Scope of Training MSMEs on
overcoming the fear/ aversion
towards paperwork
Lack of funding – high cost of
technology
Financing becomes relevant
due to high cost of technology
Almost all the industries in
Tirunelveli are Micro Enterprises
Low awareness on relevant
schemes and policies
Key Motivator
For survival and sustenance in the
long run, it is imperative to switch
to the higher end markets, for
chemical industries etc. and hence
MSMEs need to convert open kilns
to vertical shaft kilns or other
suitable technology; and will also
need to use higher quality limestone
as well.
It is critical to ensure that the new
technology adopted is energy
efficient.
Communication need
Need to create focused
communication initiatives in the
segment to raise awareness.
Create facilitators in the sector, to
speed-up the process
Industries in the cluster are
keenly aware of this situation.
This can be strong motivators
for change.
Need to focus on appropriate
schemes and policies at the relevant
stages during project
Encourage / partner FIs and Banks
to take up efforts to popularise
schemes available, suited for the
cluster
Highlight these advantages in
relevant communication and
creative’s on energy efficiency
7.3. Communication gaps and needs for Kolhapur
Foundry cluster
Need identified for insights and findings specific to Kolhapur Foundry cluster in addition to
common findings.
Table 7.3: Communication gaps and needs analysis for Kolhapur Foundry cluster
Insight
Gap / Opportunity
Communication need
EE Technology Providers
There are very few vendors for EE
technologies especially in case of
cupola.
Motivators
There is immense pressure on
entrepreneurs to reduce operational
cost to become competitive.
PwC
Local equipment vendors and
service providers can be
informed & initiated on
energy efficiency measures
and requirements
Facilitate better understanding of
cupola
Outreach efforts promoting
energy efficiency as a
measure to reduce cost shall
be very effective in the
cluster.
Focus on Cost & Productivity
Benefits of Energy Efficiency in
communications
79
7.4. Communication gaps and needs for Pune Forging
cluster
Need identified for insights and findings specific to Pune Forging cluster in addition to
common findings.
Table 7.4: Communication gaps and needs analysis for Pune Forging cluster
Insight
Gap / Opportunity
Communication need
Fuel Used
Using furnace oil for furnaces result
in side effects and storage issues
This can motivate to shift to
other fuel options like CNG
which does not have any side
effects and no storage
requirement
Highlight these advantages in
relevant communication and
creatives
Even this has not encouraged
the unit owners/managers to
take steps towards energy
efficiency.
Focus on energy cost component,
and economic benefits of energy
efficiency in communications
Energy Cost component
For many of the smaller heat
treatment units that do job work for
bigger units, energy cost contributes
to around 70% of the total cost.
7.5. Communication gaps and needs for Ankleshwar
Chemicals cluster
Need identified for insights and findings specific to Ankleshwar Chemicals cluster in addition
to common findings.
Table 7.5: Communication gaps and needs analysis for Ankleshwar Chemicals cluster
Insight
Gap
Communication need
Awareness generation and Capacity Building
Energy Efficiency Not a Priority
This perception can clearly be
efficiency is almost never a
attributed to previous bad
priority:
experience i.e.
Lack of effective audits, Lac of
The cluster has witnessed
effective and practically
mandatory energy audits, and
implementable audit
walkthrough audit schemes
recommendations
where the audits were conducted
superficially and did not produce Lack of successful demonstration
effective and implementable
of energy efficiency in the cluster,
suggestions. This has left a bad
and
taste and a perception that
energy efficiency interventions
Also in part to lack of adequate
do not pay off
awareness
About 95% of the units believe
that energy efficiency is either
insignificant or less significant to
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Communication to convince on
practical application potential –
Identify enthusiastic
entrepreneurs (early adaptors /
champions) and focus on their
needs and concerns
Propagation of Case Studies from
other similar cluster – eg. Vapi
and Ahmedabad chemical
clusters from BEE SME program
Highlight Study tours to similar
clusters where better technology
is in operation (tour may be
undertaken as part of other
project components)
80
Insight
their industry unit
Majority of industries (around
85%) feel that spreading
awareness is insignificant or less
significant activity.
There is good market for the
products in the cluster
Pigments and Pharmaceutical
industry serve major markets
worldwide.
EE not a priority in this scenario
Technology Vendors and LSPs
Equipment like tray dryers,
Thermopacs, Boilers etc. are of
local make. Design data or data
on efficiency are not readily
available for these locally
fabricated equipment.
Gap
Communication need
Propagation of Case Studies as
the implementations happen
during the course of the project
A relative lack or absence of need
to focus on the bottom line due to
excellent market demand and
conditions
Need to highlight secondary
benefits like fulfilment of
environmental and social
obligations.
These could be all the more
relevant in terms of export
market requirements.
Local equipment vendors need
encouragement to standardize
their product offering with clear
data on design, EE claims,
criteria, etc for easy and
widespread adoption
These LSPs can be a target group
in awareness and outreach efforts
Lack of energy consumption
benchmarks, comparative
technical data etc.
Effective communication of
relevant benchmarks,
comparative technical data etc.
Other Barriers
Comparative data for energy
efficiency for different processes
or components thereof is not
available and hence informed
decision making becomes all the
more difficult
This can be administered
through the Energy Efficiency
Portal being planned under the
project, as well as through other
media like publications and
brochures.
Data can be derived and
compiled from the other relevant
project components
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7.6. Communication gaps and needs for Faridabad
Industrial cluster
Need identified for insights and findings specific to Ankleshwar Chemicals cluster in addition
to common findings.
Table 7.6: Communication gaps and needs analysis for Faridabad Industrial cluster
Insight
Gap / Opportunity
Communication need
Awareness generation and Capacity Building
Awareness needs of Industries
Energy Efficiency is not much of a
priority among industries.
The cluster being a mixed cluster
has a wider spectrum of energy
efficiency benchmarks, measures
and scenarios
The cluster is relatively untouched
in the sense that it has not
witnessed any major energy
efficiency programme or initiative at
cluster level in the past
Foundry & forging are energy
intensive processes.
Industries surveyed have
their energy cost as 10 – 20%
of the production cost.
Indicates that outreach
measures are required for
improving the level of
awareness and uptake of
energy efficient technology
and processes.
Need to propagate:
 Practical Demonstration of
energy efficient technologies,
 Process improvements towards
better productivity and energy
efficiency
 Study Tours (tour may be
undertaken as part of other
project components)
 Case Studies
 Benchmarks, and M&V
information
Awareness needs of a more
preliminary level
7.7. Way forward
Detailed communication strategy shall be developed as part of Phase – II activities.
Communication strategy shall manifest from identification of communication gaps and needs
as discussed above. Following important directions are derived based on which common
communication needs across the clusters shall be addressed.

Create a 360 degree communication initiative to raise Top of Mind awareness on EE issues
and a defined call to action.

Steps & Guidelines for the transition need to be communicated well among the
stakeholders, through both Above The Line and Below The Line communication.

Create opportunities of ‘touch and feel’ experience through live demonstration,
documentary films on success stories, mobile SMSes doing rounds in the clusters, etc.

Involvement of policy makers, institutions and enforcement agencies to formulate such
policies which are effective and could be easily adopted by industry for promotion of EETs.
Need to create more opportunities for interactive session facilitated by either the
Association or by other industry bodies for such activities.

Capacity Building of Industry Associations to map EETs, and vendors thereof, as relevant
for the sector and cluster. The exhaustive listing prepared under such initiative should be
accessible to all its members
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
Interactive sessions need to be organised by Associations etc involving FI’s alongside other
Nationalised Banks and Cooperatives to improve upon the empathy and working
relationships

Communication needs to continuously reinvent itself, to reinforce, re-assure and motivate
industry owners with success stories, testimonials etc for adoption of EETs

Specific Communication needs to be designed, to address cluster specific issues and
concerns, and motivate adoption of EETs
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Appendix A. - Questionnaire survey
form
WB/SIDBI Project: Providing Project Development Support for Energy Efficiency
Information Request from MSME Industries
S.No
1
2
Particulars
Name and address of the
company
Constitution
Details
Proprietary/ Partnership/ Private Limited
Other :___________________________
3
4
5
6
Name of Banker
Name of the Owner
Name and position of the
coordinating officer, if not
the Owner
Contact Details of the cocoordinating officer
7
Type of Industry
8
9
Factory year of
commissioning
Details of Operation
10
Details of Production
11
Value of Plant &
Machinery
Sources of Energy &
Quantity - Electricity
12
13
Sources of Energy &
Quantity - Other
Tel & Fax: _______________
Mobile: _________________
□ Forging
□ Foundry
□ Heat Treatment
□ Electroplating
□ Die Casting
□ Automobile / Auto Parts
Email:
_________________________
□ Light Engineering/Sheet Metal
Works
□ Packaging Industries
□ Chemical / Paint
□ Textile / Apparel Dyeing
□ Other __________________
No of Shifts Per Day:
Downtime – Hrs/ Year :
Hours per shift :
Shutdown for Planned
Working days/wk :
Maintenance Hrs /Year:
Was there any forced shutdown in the recent past due to any local reason, e.g.
power availability, labor issues, compliance problems etc. : Yes/No
Products
Installed Capacity (Ton/ Actual Production (Ton/
Day or Applicable Unit)
Day or Applicable Unit)
Rs __________________ Lakhs
Own Generation
Number of Generators : ________
Sanctioned Load :___________kW
 DG#1: kVA & __ ltrs of diesel/mnth
Monthly Consumption ________ kWh
 DG#2: ___kVA & __ ltrs of diesel/mnth
Average hrs of power cut per day:
 DG#3: __ kVA & __ ltrs of diesel/mnth
Please mention the monthly fuel consumption, source of purchase & application
very briefly alongside the fuel you use (list below)
1. Diesel (Other than DG): ________ 5. LPG: _____________________
2. LDO : _______________________ 6. Coal: ______________________
3. HFO: _______________________ 7. Lignite:____________________
4. Natural Gas: _________________ 8. Pet coke: __________________
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Purchased Electricity (DHBVN)
84
S.No
Particulars
14
Total energy cost in the
unit as a % of total
conversion cost (i.e
manufacturing cost
excluding cost of raw
material)
Has the Company
conducted any energy
audit in the past?
15
□
□
□
□
Details
9. Biomass : _________________
□ > than 40%
<10%
10 to 20%
20% to 30%
30 % to 40%
If Yes, Name of Energy Auditor : __________________________________
Savings Identified : Rs ________ Lakhs
Investment Estimate: Rs ________ Lakhs
Identified Projects Implemented : Yes/No/Partial Implementation
16
What are the specific
concerns with regard of
production / operation?
(Select as many)
□ High cost of electricity
□ High cost of Diesel
□ Varying Cost of Gas
□ Meeting Statutory
Compliance, ______
________________________
□ Competition,
_____________________
______________________
□ Power Cuts
□ Quality of Products
□ Social and Environment
Responsibility
□ Raw Material Cost
□ Any other,
____________________
________________________
17
18
19
Is the unit ISO certified?
Do you have any
subsidiary units? If yes,
Names of units
What kind of customers do
you have? (Select among
the options & provide a %
figure for the share of
revenue alongside)
Yes/No
□ Export Market
□ ________%
□ Original Equipment Manufacturers
□ ________%
□ Domestic Other than OEM
□ ________%
□ Others, Please mention
□ ________%
20
Parameter
Units
A
B
C
D
Production
No of days operated
Annual Turnover
Cost of Raw Material
Annual Cost of Electricity
 purchased from DHBVN
 own generation
Annual Cost of other sources of
energy (Excluding diesel for self
generation)
Any other Conversion Cost
Gross Profit
Net Profit
MT
Days/Year
Lakh Rs
Lakh Rs
Lakh Rs
E
F
G
H
I
PwC
2009-10
2010-11
2011-12
Lakh Rs
Lakh Rs
Lakh Rs
Lakh Rs
85
Rating ---
21.
22.
Significance of EE in your plant
Significance of spreading awareness to promote energy
efficiency
23
Media Habits
A
Newspaper
Which newspaper do you read?
Which are your favorite sections in newspaper?
Radio/FM
Which channel do you listen to (frequency)?
At what time you listen to radio?
Television
Which channel do you usually see?
Internet
Which sites do you often visit?
How often you visit these sites?
Do you visit any industry specific website? If yes, which ones?
B
C
D
24
25
1
2
3
4
5
Rank following media sources from 1 to 12 for using them as trusted source of information for key decisions
in your unit:
Media Sources
Ranking
Media Sources
Ranking
Mobile messages
Poster/banner
E-mail
Newspaper
Industry journals
Radio
Magazines
Television
Industry association
Website/ social networking
Seminar/ workshop
Others (specify)
List the energy efficiency projects implemented during past 1 to 3 years:
____________________________________________________________________
____________________________________________________________________
26
What influenced you to undertake above mentioned energy efficiency projects?
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26
Which of the following energy efficiency measure do you feel can be implemented in your unit?
EE measures
Tick ()
EE measures
Furnace
Awareness/skill development for staff
Insulation
Energy Audit
Fans/ blowers
Bankable DPS’s
Compressed Air Systems
EE rating scheme for SME units
Pumps
Others (specify)
Tick ()
Lighting
27
What according to you have been/are the barriers for implementing energy efficiency measures in your unit?
Barriers
Low awareness about EE technologies (unit
staff)
Lack of financing options/schemes
available for EE projects
Energy efficiency not being a priority for
the management
Lack of incentives for implementing EE
projects
Lack of incentives for implementing EE
projects
28
Tick ()
Barriers
Tick ()
Non availability of reputed ESCO and
energy auditor to implement and design
projects
Lack of confidence about new
technologies (lack of demonstration
projects)
Financial institution reluctant to provide
loans (absence of bankable DPRs)
Availability of reliable local service
providers
Others (please specify)
What schemes/programs/policies would be helpful for promoting energy efficiency in your business? (Tick
applicable options)
Schemes/programs/policies
Tick ()
Schemes/programs/policies
Tick ()
Financial incentives (except tax incentive)
Tax incentives
Others (please specify)
29
30
Would you like to be associated with following activities of this project? (Tick ()
Walk – through audits
Detailed Energy Audit
Demonstration project
Any comments/suggestions to effectively implement this program?
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Appendix B. - Tirunelveli Limekilns
cluster
B.1. Cluster profile for Tirunelveli Limekilns Cluster
Mapping of concentration pockets of Limekilns
Limekilns in Tirunelveli are located in several concentration pockets in greater Tirunelveli region.
Rasta is the principal concentration pocket of Limekilns followed by Rajapalayam and Sankar Nagar.
A small number of Limekilns is located outside these locations as well. Detailed study was carried out
to map number of limekilns units in each of these pockets along with installed number of kilns and
collective production output. The outcome of mapping study is presented in Table B.1.1 below.
Table B.1.1: Mapping of concentration pockets of Limekilns in Tirunelveli
Location
Number of Units
Number of
Lime Production
Kilns
(tons/day)
Sankar Nagar
9
32
80
Rasta
70
160
300
Rajapalayam
10
20
100
Others
5
15
40
Total
94
227
500
It can be seen from above table that there exist about 94 Limekiln units with a total of 227 installed
kilns. Almost all the Limekilns were found operational during the mapping study.
Important stakeholders in Tirunelveli Limekilns cluster
Limekiln units in Tirunelveli have organised themselves by formation of The Tirunelveli District Lime
Manufacturers Welfare Association (TLMWA) as the sole active industrial association in the cluster.
TLMWA was earlier known as ‘The Nellai Lime Manufacturers Association’.
The association is
representative of majority of the Limekilns in the cluster and positions itself as a nodal point for all
cluster level activities for the Limekilns cluster.
Financial Institutions/Banks
The Financial Institutions (FIs) dedicated for MSMEs in the cluster are Tamil Nadu Industrial
Investment Corporation Ltd (TIIC). The nearest Branch Office of Small Industries Development Bank
of India (SIDBI) is located in Madurai, Tamil Nadu, at an approximate distance of 160 km. Besides,
there also exist a number of commercial banks which extend financial assistance to MSME units in the
clusters. Most popular banks in the cluster are Indian Overseas Bank, Union Bank, SBI and ICICI
Bank, of which Indian Overseas Bank is most preferred by entrepreneurs.
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During qualitative discussions, Limekiln owners expressed that process facilitation and streamlining
of documentation by FIs shall balance the existing inclination of MSME units towards commercial
banks to avail financial assistance.
Equipment Vendors and Technology Suppliers
Prominent suppliers of both Equipment/machinery as well as technical services provide their services
to Tirunelveli Limekiln cluster. Technology vendors operate mostly from outside the geographical
proximity of the cluster while needs of peripheral equipment, material of construction and
maintenance services are met from within the cluster itself.
Learnings from qualitative discussions indicate that very few vendors include Energy Efficiency as a
promotional feature of their equipment and machinery.
This generates a need for identification of
target groups comprising of such equipment/technology vendors.
Institutional Stakeholders
District Industries Centre (DIC), Tirunelveli, is the government nodal agency for coordinating
industrial activity in Tirunelveli district. DIC, Tirunelveli, functions under the mandate of Department
of Industries and Commerce, Government of Tamil Nadu. Contact details of DIC, Tirunelveli are
mentioned below.
Contact Person:
Thiru. A.Rajarajan B.E., General Manager,
Address:
District Industries Centre,
St.Thomas Road,
High Ground, Tirunelveli-627011 , Tamilnadu .
Ph:
0462-2572162.
Fax:
0462-2572384.
Email:
dicnellai@gmail.com
Website:
www.dictirunelveli.in
Qualitative assessment shows that DIC, Tirunelveli, is staffed by experienced officials and works
towards providing facilitation to MSMEs in their various administration related needs.
Executing Agencies for the Project
A Cluster Coordination Committee (CCC) with representation from multitude of stakeholders like
MSMEs, Industry Associations, Financial Institutions, etc has been created by SIDBI, an
implementing partner in the project, to closely monitor and support various Project activities in the
cluster. Zenith Energy Services Pvt Ltd. is entrusted with the role of coordination of project activities
in the cluster, and capacity building of MSMEs and industry associations.
Dalkia Energy Services Limited (DESL) and PwC serve as Project Development Partners and Media &
Outreach Partners respectively.
Other EE interventions in Tirunelveli Limekilns cluster
Following Energy Efficiency improvement interventions have been carried out in Tirunelveli
Limekilns cluster in the past as part of broader programs:
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
Enhancing the competitiveness of small-scale limekilns in India – A diagnostic assessment of
best practices, benchmarking, socio-health-safety conditions, biomass utilization, and CDM
feasibility (EnCoL) ; supported by European Union, 2005 - 2006

Market Assessment for Energy Efficiency Interventions at SME Clusters in India; supported
by International Bank for Reconstruction and Development (World Bank), 2007 - 2008
Another important development oriented initiative in the cluster has been initiated by a sub-group of
entrepreneurs within TLMWA. Application for setting up of model demonstration unit based on
Vertical Shaft Kiln technology is already submitted to relevant government departments under the
Medium and Small scale Enterprise Cluster Development Program (MSE - CDP). The application is
currently under process.
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B.2. Demographic Profile of Tirunelveli Limekilns
cluster
Demographic characteristics of entrepreneurs in the cluster were studies by way of quantitative and
qualitative tools. Such demographic characteristics include preferred language of communication,
level of formal education, sector-specific experience, typical working day and person-specific factors
favouring likelihood of acceptance of new ideas and adoption of new technologies. These have been
discussed in detail in upcoming paragraphs.
Tamil is the native language in Tirunelveli and is widely accepted as preferred language for
communication. 100% of the participants in unit level survey stated their preference of Tamil as
language of communication and the trend is also supported by observations of qualitative research. A
sizable share (36%) of surveyed Limekiln owners is also well versed in English. Most of the staff and
workers are familiar only with Tamil as their spoken language. A small segment of Limekiln owners
and staff also speak Telugu, Hindi or Malayalam as shown in Figure B.2.1.
% of Respondents
100
The media for
communication will
need to be rendered in
Tamil for effectiveness.
36
15
6
Tamil
English
Telugu
Hindi
Spoken Language
6
Malyalam
Figure B.2.1: Preferred spoken language in Tirunelveli Limekiln cluster
It can be seen from above figure that Tamil shall be the most effective language for communication in
Tirunelveli and relevant media components need to be rendered in Tamil for maximum reach out.
Tirunelveli Limekilns cluster is mostly formally educated with distributed level of formal education
among entrepreneurs. Entrepreneurs were requested to provide their highest educational
qualification and the results have been mapped and presented as Figure B.2.2 below.
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10%
Masters
14%
Bachelors
35%
Higher secondery,ITI,
Diploma
41%
No Education
Figure B.2.2: Distribution of formal education level in Tirunelveli Limekiln cluster
It can be seen from above figure that 14% of the entrepreneurs are post graduates while 41% are
graduates and more than 35% have Higher Secondary, Diploma or ITI as their highest educational
qualification. A small share of entrepreneurs is not formally educated.
Sector-specific
specific experience
As stated earlier, Lime manufacturing is traditional industrial activity in the Tirunelveli. Majority of
Limekiln owners in Tirunelveli have long experience of the sector. Distribution of quantitative
findings of sector-specific
specific experience of Limekiln owners is shown in Figure B.2.3.
Experience in years
3%
12%
5-10
22%
11-15
16-20
41%
22%
21-25
26-30
Figure B.2.3: Distribution of entrepreneurs’ experience in Tirunelveli Limekiln cluster
Above figure shows that 78% entrepreneurs have more than 10 years experience in Limekiln
operations and hence possess deep insights related to day-to-day
day
day affairs in Limekilns sector.
Typical working day
As observed from survey findings, Limekiln owners schedule the factory visits twice in a day for 6 AM
– 9 AM in the morning and 4 PM – 6 PM in evening. 9 AM – 12 PM time duration is utilized for
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visiting Banks and other out-of
of-office engagements while 12 PM – 4 PM is kept scheduled for
attending office related engagements like accounts, commercial activities, etc. Availability of power
supply is an important factor while determining any typical day’s
day’s schedule. Division of a typical
working day is presented in Figure B.2.4.
Kiln
Kiln
6-9
9 am
Official work
9am
9am-12pm
Bank
12pm
12pm-4pm
4pm
4pm-6pm
Figure B.2.4: Typical working day for entrepreneurs in Tirunelveli Limekilns cluster
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B.3. Energy Consumption Profile of Tirunelveli
Limekilns cluster
Lime produced in Tirunelveli is generally graded as either one of ‘Cem grade’ Lime or ‘Chemical grade’
Lime. Cem grade lime is used primarily in whitewashing and painting applications while Chemical
grade Lime is used for industrial applications in sectors like Sugar, Pulp
Pulp & Paper, Textiles and
Chemical industries. The difference in two grades of Lime originates from type of raw material used
for manufacturing of each type of Lime. Cem grade lime is manufactured from Dolomite limestone
which has relatively lower share of oxides
oxides of Calcium, while Chemical grade Lime is manufactured
from Calcite limestone which has comparatively higher share of oxides of Calcium.
Limekilns in Tirunelveli are traditionally operated and managed on a micro to small enterprise scale.
The units operate
erate with open type batch kilns based on conventional technology. The kilns are
approximately 2 m high and with 3 m internal diameter and fabricated by ordinary clay bricks. No
refractory lining is provided on the hot side of the kiln. The output of the kilns
kilns varies in the range of 3
to 7 tons of production output per batch. The kilns operate on forced draft and each kiln is provided
with blower to supply the required combustion air. The time required for completion of each batch is
16 to 18 hours.
Capacity Utilization
Figure B.3.1 shows the capacity utilization in Limekilns vis-a-vis
vis vis installed production capacity in
Tirunelveli Limekilns cluster.
34%
44%
% of installed capacity
40%
40%-60%
61%
61%-80%
81%
81%-100%
22%
Figure B.3.1: Capacity utilization of installed capacity in Tirunelveli Limekilns cluster
It can be seen from above figure that about 34% of the units are operating at less than 60% of their
production capacities. This may be attributed to either lack of orders or may also be due to the
rampant power outages as reported by survey
su
respondents.
Energy sources and specific energy consumption
Charcoal and Electricity are the principal sources of energy in Limekilns. Electricity is used in process
equipment and kiln auxiliaries like crusher / sieve, blower for kiln, belt conveyors, pulverizer etc.
While charcoal is used at fuel to provide necessary temperature during lime burning process.
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Electricity is available at Rs. 5.5/ kWh from TNEB and price of charcoal varies from Rs. 370 to Rs. 415
per bag (35 kg). Almost all units have LT electricity connections from the TNEB and connected load
per ton of installed capacity varies from 5 to 7 HP / ton for most of the units.
Average specific fuel consumption (charcoal) is around 200 kg/ton of lime, while average specific
electricity consumption
tion is around 50 kWh/ton. Figure B.3.2 shows specific fuel consumption and
specific electricity consumption for surveyed units.
-
50
100
150
Electricity (kWh/T)
200
250
Charcoal (kg/T)
Figure B.3.2: Specific fuel/electricity consumption in Limekilns
Above figure shows that Charcoal being the major energy source, any increase in cost of charcoal will
have major influence on the production cost of lime.
Energy Cost varies from 35% to 60% of the total production cost. For 60% of the units surveyed, the
share of energy cost fall between 41 % and 50% of the total production cost. Figure B.3.3 shows
distribution of share of energy cost in total production cost among the surveyed units
units.
10%
17%
13%
% Share of energy in total
production cost
35% - 40%
41% - 45%
46% - 50%
20%
51% - 55%
40%
55% - 60%
Figure B.3.3: Share of energy cost in total production cost in Limekilns
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Appendix C. - Kolhapur Foundry
cluster
C.1. Cluster profile for Kolhapur Foundry Cluster
Kolhapur, since long, has been renowned for its foundry industry cluster for manufacturing premium
cast products for industries across sectors like Automobiles, Electric Motors, Pump Housings, General
Engineering components, etc. Among several other parameters, and also because of strategically
important presence of Kolhapur foundry cluster in Indian foundry sector, the cluster was chosen as
one of the target sector-cluster combination in the Project. Approximately 250 operational Foundries
exist in Kolhapur in either of the four concentration pockets located in greater Kolhapur region. These
regions are Shiroli, Gokul Shirgaon, Hathakanagle and Kagal. A small fraction of Foundries is also
located in Shivaji Udhyamnagar region within Kolhapur city. . Foundries in Kolhapur cater to the
market for high end castings in the automotive and electrical machinery sectors. The major
components being produced in the cluster include automotive components, flywheels, motor and
pump casings etc. Most of the foundries in the area are sand casting. The industries in Kolhapur are
major suppliers to the OEM customers like Tata, Bajaj, Mahindra and Mahindra, General Motors, etc.
Important stakeholders in the cluster
Foundry units in Kolhapur have organized themselves into several industrial associations. These
associations serve as a platform for discussions on common issues as well as new research. Important
foundry associations in the cluster along with coordinates of the contact person are provided in the
Table C.1.1 below.
Name of the Association
Kolhapur Engineering Association
Contact Address
Karajgar Road, Shivaji Udyamnagar
Kolhapur - 416012
Institute of Indian Foundrymen, Kolhapur
Chapter
R.S. No.-857, Building "A",
Y.P. Powar Nagar, Kolhapur - 416008
Shiroli Manufacturers’ Association, Kolhapur
P-12, MIDC, Shiroli, Kolhapur – 416112
Gokul Shirgaon Manufacturers’ Association,
Kolhapur
P-35,MIDC, Gokul Shirgaon Industrial
Area, Kolhapur - 416234
Manufacturers’ Association of Kagal –
Hatkanangale
A – 84, Five Star MIDC, Kagal
Hatkanangale, Kolhapur – 416216
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The Financial Institutions (FIs) dedicated for MSMEs in the cluster is Small Industries Development
Bank of India (SIDBI) having local presence in Kolhapur. Contact details of SIDBI Kolhapur are
provided below.
Address:
Office No F 5 & 6, First Floor, Om Plaza,
1432, 'C' Ward, Konda Lane,
Laxmipuri, Kolhapur
Ph:
0231 2640326
Fax:
0231 2640326
Email:
Kolhapur@sidbi.in
There exists strong presence of local cooperative banks and societies in the cluster which traditionally
find wide acceptance among the MSMEs as compared to other nationalised and private banks. This is
mostly attributed to age old presence of these cooperative banks. However, recent trends show that
gradually increasing acceptance of other commercial banks among the young entrepreneurs is
balancing the trend.
Prominent suppliers of both Equipment/machinery as well as technical services provide their services
to Kolhapur Foundry cluster. There exist several number of equipment designers and technological
service providers in the cluster. Equipment vendors serve the need for various foundry related
equipment like cupola, induction furnace, shot blasting machine, turning and machining centres, etc.
promotional feature of their equipment and machinery. This generates a need for identification of
target groups comprising of such equipment/technology vendors.
A Cluster Coordination Committee (CCC) with representation from multitude of stakeholders like
MSMEs, Industry Associations, Financial Institutions, etc has been created by SIDBI, an
implementing partner in the project, to closely monitor and support various Project activities in the
cluster. See-Tech Solutions Pvt Ltd. is entrusted with the role of coordination of project activities in
the cluster, and capacity building of MSMEs and industry associations. Contact details of See-Tech
Solutions Pvt Ltd are provided below for reference.
Contact Person: Mr. Manoj Telrande, Manager
Address:
11/5, Letsconserve, MIDC Info Tech Park,
Near VRCE Telephone Exchange, South Ambazari Road,
Nagpur – 22
Ph:
0712 2222177
Fax:
0712 2225293
Email:
energyconservation@letsconserve.in
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The Energy and Resources Institute (TERI) and PwC serve as Project Development Partners and
Media & Outreach Partners respectively.
Other EE interventions in Kolhapur Foundry cluster
Following Energy Efficiency improvement interventions have been carried out in Kolhapur Foundry
cluster in the past as part of broader programs:

Market Assessment for Energy Efficiency Interventions at SME Clusters in India; supported
by International Bank for Reconstruction and Development (World Bank), 2007 - 2008
Another important development oriented initiative in the cluster has been initiated by a sub-group of
entrepreneurs across different industry association for development of Kolhapur Foundry cluster and
setting up of common facilities centre.
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C.2. Demographic Profile of Kolhapur Foundry
cluster
qualitative tools. Such demographic characteristics include preferred language of communication,
level of formal education, sector-specific experience, typical working day and person-specific factors
favouring likelihood of acceptance of new ideas and adoption of new technologies. These have been
discussed in detail in upcoming paragraphs.
Marathi is the native language in Kolhapur and is widely accepted as preferred language for
communication. 98% of the participants in unit level survey stated their preference of Marathi as
language of communication and the trend is also supported by observations of qualitative research.
However, entrepreneurs in the cluster are also equally comfortable with Hindi and English with each
having 89% and 94% acceptance respectively as shown in Figure C.2.1.
% of Respondents
98%
94%
89%
Marathi
English
Hindi
Figure C.2.1: Preferred spoken language in Kolhapur Foundry cluster
It can be seen from above figure that Marathi is the most effective language for communication in
Kolhapur and relevant media components can be rendered in Marathi supported by English and
Hindi.
Kolhapur Foundry cluster is mostly formally educated with high degree of formal education among
entrepreneurs. Entrepreneurs were requested to provide their highest educational qualification and
the results have been mapped and presented as Figure C.2.2 below.
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8%
15%
B Tech
54%
15%
B Com
B Sc
MBA
8%
Diploma
Figure C.2.2: Distribution of formal education level in Kolhapur Foundry cluster
It can be seen from above figure that 54% of the entrepreneurs are Engineers and collectively 92% are
graduates while rest have Diploma as their highest educational qualification.
Sector-specific
specific experience
Majority of Foundry owners in Kolhapur have long experience of the sector. Distribution of
quantitative findings of sector-specific
specific experience of Foundry owners is shown in Figure C.2.3.
Experience in years
31%
39%
0-5
6-10
11-15
16-20
15%
15%
21-25
Figure C.2.3: Distribution of entrepreneurs’ experience in Kolhapur Foundry cluster
Above figure shows that 69% entrepreneurs have more than 10 years experience in Foundry
operations and hence possess deep insights related to day-to-day
day
day affairs in Foundry sector.
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Appendix D. - Pune Forging cluster
D.1. Cluster profile for Pune Forging Cluster
Pune is a major industrial centre in state of Maharashtra and also a hub for automobile
manufacturing. Pune also houses a cluster of Forging units primarily engaged in production of autocomponents and machinery components. There exist close to 160 Forging units in Pune, concentrated
in Ahmednagar, Satara, Chakan and Lonavala industrial clusters in greater Pune region. The Forging
units function as ancillary units to major automobile manufacturers, including Bajaj Auto, Tata
Motors and DaimlerChrysler and appliance manufactures Voltas, Videocon, Whirlpool, etc.
Forging process typically implies reheating billets and ingots (flats and rounds) and forming into
desired products by the application of mechanical pressure. Major auto-component products of
Forging units in Pune are as crankshafts, connecting rods, camshafts, steering components, gear box
components, earth moving link and railway wheels.
Forging units in Pune have organized themselves into an industrial association called Association of
Indian Forging Industry (AIFI). The association serves as a platform for discussions on common
issues as well as new research. There also exist other industry associations in the cluster with wider
sector focus. The important ones of such industry associations are provided below:

Maratha Chamber of Commerce Industries and Agriculture (MCCIA)

Deccan Chamber of Commerce Industries and Agriculture (DCCIA)

Pimpri-Chinchwad Small Industries Association (PCSIA)
The Financial Institutions (FIs) dedicated for MSMEs in the cluster is Small Industries Development
Bank of India (SIDBI) having presence in Pune as well as in major industrial clusters in greater Pune
region. Contact details of SIDBI Pune are provided below.
Address:
Jeevan Shree Building, Ground Floor, S.No.1109,
Ganeshkhind Road, Shivajinagar,
Near Pune Central, Pune - 411005
Ph:
020 25675269
Fax:
020 25675114
Email:
Pune@sidbi.in
Apart from above, SIDBI has local presence in industrial clusters Chinchwad and Ahmednagar.
Following cooperative and commercial banks find popularity among Forging units in Pune.
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Cooperative Societies

Prerana Co. Op. Bank

Rupee Co. Op. Bank

Seva Vikas
Banks

Corporation Bank, Chinchwad

Dena Bank

HDFC Bank

Citibank

Canara Bank

SBI

IDBI Bank

Bank of India
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Prominent suppliers of both Equipment/machinery as well as technical services provide their services to
Pune Forging cluster. There exist several number of equipment designers and technological service
providers in the cluster. Equipment vendors serve the need for various Forging related equipment like
reheating furnace, induction heaters, compressed air systems, turning and machining centres, etc.
promotional feature of their equipment and machinery. This generates a need for identification of target
groups comprising of such equipment/technology vendors.
A Cluster Coordination Committee (CCC) with representation from multitude of stakeholders like MSMEs,
Industry Associations, Financial Institutions, etc has been created by SIDBI, an implementing partner in
the project, to closely monitor and support various Project activities in the cluster. MITCON Consultancy
and Engineering Services Ltd is entrusted with the role of coordination of project activities in the cluster,
and capacity building of MSMEs and industry associations. Contact details of MITCON are provided below
for reference.
Contact Person: Mr. Deepak Zade, Executive Vice President
Address:
Kubera Chambers, Shivajinagar
Pune 411 005
Ph:
020 6628 9152
Fax:
020 2553 3206
Email:
deepak@mitconconsultancy.org
The Energy and Resources Institute (TERI) and PwC serve as Project Development Partners and Media &
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D.2. Demographic Profile of Pune Forging cluster
qualitative tools. Such demographic characteristics include preferred language
language of communication, level of
formal education, sector-specific
specific experience, typical working day and person-specific
person specific factors favouring
likelihood of acceptance of new ideas and adoption of new technologies. These have been discussed in
detail in upcoming paragraphs.
Pune Forging cluster demonstrates almost equal acceptance of English, Marathi and Hindi as preferred
spoken language. 100% of the participants in unit level survey stated their preference of English as
language of communication followed by Marathi and Hindi
Hindi at 85% as shown in Figure D.2.1. The trend is
% of respondents
also supported by observations of qualitative research.
83
56
53
3
Marathi
Hindi
English
Others
Figure D.2.1: Preferred spoken language in Pune Forging
Fo ging cluster
It can be seen from above figure that Marathi is the most effective language for communication in Pune
and relevant media components can be rendered in Marathi supported by English and/or Hindi.
Pune Forging cluster is mostly formally educated with high degree of formal education among
entrepreneurs. Entrepreneurs were requested to provide their highest educational qualification and the
results have been mapped and presented as Figure D.2.2 below.
13%
38%
12%
12%
13%
12%
Diploam
B. Com.
DME
B. Sc.
M. Tech
BE
Figure D.2.2: Distribution of formal education level in Pune Forging cluster
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It can be seen from above figure that all entrepreneurs in the cluster are formally educated with technical
education. 51% entrepreneurs are Engineers and collectively 75% are graduates while rest have Diploma as
their highest educational qualification.
Sector-specific
specific experience
Majority of Forging unit owners in Pune have long experience of the sector. Distribution of quantitative
findings of sector-specific
specific experience of Forging unit owners is shown in Figure D.2.3.
18%
30%
Experience in years
< 5 years
19%
5 - 10 years
10 - 20 years
> 20 years
33%
Figure D.2.3: Distribution of entrepreneurs’ experience in Pune Forging cluster
Above figure shows that 70%
% entrepreneurs have more than 5 years experience in Forging operations and
hence possess deep insights related to day-to-day
day
affairs in Forging sector.
In a typical day, the Forging units operate in 3 shifts of 8 hours each. A smaller segment of Forging units
operates in 2 shifts of 12 hours each. Figure D.2.4 shows the distribution of surveyed Forging units with
respect to number of hours of operation.
operati
17%
28%
56%
1 Shift
2 Shifts
3 Shifts
Figure D.2.4: Distribution of Forging units with respect to number of shifts
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Appendix E. - Ankleshwar Chemicals
cluster
E.1. Cluster profile for Ankleshwar Chemicals Cluster
Ankleshwar is the largest cluster of Chemicals manufacturing MSME units in India. There exist close to
700 Chemical units in Ankleshwar, engaged in manufacturing of various industrial and other chemical
based products like pesticides, pharmaceuticals components, bulk drugs, petroleum products, textile
pigment and Dyes, plastics, rubber, packaging material and so on. The units are concentrated in industrial
estate developed by Gujarat Industrial Development Corporation (GIDC).
Chemical manufacturing processes are typically very specialized one and depend largely on the end
product required. However, several common energy consuming steps like crushing, mixing, centrifuge,
drying, etc, are commonly employed across Chemical units. The cluster has witnessed strict
implementation of environmental and other concerned regulations in the past and hence, thre exist strong
institutional network to address various cluster level issues that may arise.
Chemical units in Ankleshwar have organized themselves into an industrial association called Ankleshwar
Industries Association (AIA). The association was established in 1978 and currently serves as a platform
for discussions on common issues as well as new research.
AIA has strong presence in the cluster and a vast majority of MSME Chemical units are members of AIA.
AIA has been active addressing cluster level issues related to environmental preservation and pollution
control, disaster prevention and management, creating awareness among surrounding population about
various issues, etc. To carry out above activities in the most efficient manner, Ankleshwar Industries
Association has promoted various Special Purpose Vehicles (SPVs) like Ankleshwar Industrial
Development Society, Ankleshwar Environmental Preservation Society, Enviro Technology Ltd, Bharuch
Enviro Infrastructure Ltd and Narmada Clean Tech Ltd. These SPVs play an active role in the cluster and
thus, are important stakeholders in the cluster.
The nearest branch of Financial Institutions (FIs) dedicated for MSMEs Small Industries Development
Bank of India (SIDBI) is in Vadodara, located at a distance of 90 km from the cluster. Contact details of
SIDBI Vadodara are provided below.
Address:
Landmark Bldg, First Floor, Race Course Circle,
Post Box No.3711,
Vadodara
Ph:
0265 2320679
Fax:
0265 2338680
Email:
baroda@sidbi.in
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Apart from SIDBI, there exists a network of nationalized and other commercial banks as well as
cooperative societies in the cluster. The most preferred bank in the cluster as observed during quantitative
research is Axis Bank followed by Bank of Baroda, Bank of India, ICICI Bank and HDFC Bank.
Prominent suppliers of both Equipment/machinery as well as technical services provide their services to
Ankleshwar Chemical cluster. There exist several number of equipment designers and technological service
providers in closely located industrial cluster like Ahmedabad, Vadodara, Rajkot and Mumbai. Equipment
vendors serve the need for various Chemical manufacturing process related equipment like centrifuges,
mixers and grinders, tray dryers, compressed air systems, effluent treatment systems, etc.
promotional feature of their equipment and machinery. This generates a need for identification of target
groups comprising of such equipment/technology vendors.
the project, to closely monitor and support various Project activities in the cluster. Cluster Pulse is
entrusted with the role of coordination of project activities in the cluster, and capacity building of MSMEs
and industry association. Contact details of Cluster Pulse are provided below for reference.
Contact Person: Mr Vishal Acharya, Senior Manager
Address:
1002, Safal Prelude, Prahaladnagar Corporate Road,
Ahmedabad
Ph:
+91 99252 06774
Email:
vishal@clusterpulse.org
The Energy and Resources Institute (TERI) and PwC serve as Project Development Partners and Media &
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E.2. Demographic Profile of Ankleshwar Chemicals
cluster
qualitative tools. Such demographic characteristics include preferred language of communication, level of
formal education, sector-specific experience, typical working day and person-specific factors favouring
Ankleshwar Chemicals cluster demonstrates almost universal acceptance of Gujarati and Hindi as
preferred spoken languages. 100% of the participants in unit level survey stated their preference of
Gujarati and Hindi as language of communication followed by English and Marathi at 44% and 11%
respectively as shown in Figure E.2.1. The trend is also supported by observations of qualitative research.
100%
% of respondents
100%
44%
11%
Gujarati
Hindi
English
Marathi
Figure E.2.1: Preferred spoken language in Ankleshwar Chemicals cluster
It can be seen from above figure that Guajarati and Hindi is the most effective language for communication
in Ankleshwar and relevant media components can be rendered in Gujarati supported by Hindi and/or
English.
Ankleshwar Chemicals cluster is mostly formally educated with high degree of formal education among
entrepreneurs. A large segment of Entrepreneurs reported their highest educational qualification as
Graduate or above during the qualitative discussions. However, keeping due consideration of local
sensitivities, the parameter was excluded from quantitative research.
Typical day in working life
We studied the typical work day (9 am – 6 pm) for the MSME Chemical unit owners in Ankleshwar to
analyze the time slots devoted to different activities. A typical working day distribution is presented in
Figure E.2.2. Though, there are variations at individual levels but the broad routine remains almost the
same.
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Factory
Factory
Lunch
9am - 12pm Factory
12.30pm-2.00pm Lunch
2.00pm-6.00pm
6.00pm Factory
Figure E.2.2: Distribution of typical working day in Ankleshwar Chemicals cluster
The afternoon slot of 12:30 pm – 02:00 pm is devoted to lunch and other non-commercial
commercial activities. Rest
of the work day is spent in the factory and attending various industrial and commercial engagements.
Weekly off is optional in Ankleshwar and entrepreneurs have a flexible work schedule.
In a typical day, the Chemical units operate in 3 shifts of 8 hours each or 2 shifts of 12 hours each. A
smaller segment of Chemical units operates in a single shift. Figure E.2.3
E.2.3 shows the distribution of
surveyed Chemical units with respect to number of hours of operation.
12%
44%
45%
3 shifts
2 shifts
1 shift
Figure E.2.3: Distribution of Chemical units with respect to number of shifts
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Appendix F. - Faridabad Industrial
cluster
F.1. Cluster profile for Faridabad Industrial Cluster
Faridabad is the one of the largest industrial cluster of MSME units in India. There exist close to 7,500
MSME units in Faridabad which belong to a highly diverse array of industrial sectors ranging from Iron
and Steel, non-ferrous metals and alloys, plastic, rubber, textiles, packaging and printing and so on. Almost
all primary production processes – Foundry, Forging, Extrusion, etc, and allied downstream operations –
machining, sheet metal, electroplating, etc, are predominantly existent in the cluster. As a result, the
MSME units in Faridabad can not be categorized under any particular industrial sector, and rather
Faridabad houses a mixed industrial cluster with principal industrial sectors being Foundry, Forging, Sheet
Metal, Machining and Light Engineering, Plastics, Rubber, Textiles, Adhesives and Machine Tools.
A brief description of important industrial sectors in Faridabad Industrial cluster is provided below.

Foundry & Forging: These are typically energy intensive units. Most of the forging units are have
shifted to natural gas in place FO as the furnace fuel.

Light engineering: These are typically less energy intensive compared to foundry and forging
industries. These consist of range of different manufacturers of which some are more sophisticated,
mechanised and hence relatively energy intensive. These may also be more efficient.

Plastics & Polymer: Injection moulding and blow moulding units are moderately energy intensive.

Electroplating industries: Most of the electroplating units are Micro enterprises operating on a
very small scale.

Rubber, Fabric, Garment & Packaging: These are scattered and are in relatively lesser numbers.
MSME units in Faridabad have organized themselves into several industry associations based on
institutional alliances, geographical proximity and sector-specific activity. Major industry associations in
Faridabad are listed below:

Faridabad Small Industries Association (FSIA)

Faridabad Industries Association (FIA)

Laghu Udhyog Bharti

Faridabad Manufactures Association (MAF)

Faridabad Chamber of Commerce & Industries(FCCI)

Faridabad Foundry Association

Faridabad small scale pollution control cooperative society (caters to the electroplating zone)
Each of these industry associations has strong presence within its respective domain and serves as a
platform for discussions on common issues as well as new research.
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Financial Institutions (FIs) dedicated for
for MSMEs is Small Industries Development Bank of India (SIDBI)
with local presence in Faridabad Industrial cluster. Contact details of SIDBI Faridabad are provided below.
Address:
N.H.5R/2, Neelam Badshah Khan Road,
NIT, Faridabad
Ph:
0129 2414419
Fax:
0129 2414392
Email:
faridabad@sidbi.in
Apart from SIDBI, there exists a network of nationalized and other commercial banks as well as
cooperative societies in the cluster. The most preferred bank in the cluster as observed during quantitative
research are
re SIDBI and HDFC Bank. Figure F.1.1 shows preferred banks in the cluster among the
participant MSME units.
13%
6%
6%
OBC
12%
State Bank of Patiala
13%
Canara Bank
Syndicate bank
25%
6%
19%
HDFC
SIDBI
Citibank
Axis
Figure F.1.1: Preferred banks in Faridabad Industrial cluster
There is also strong network of national and international equipment/technology suppliers. The cluster is
also benefitted by presence of technology service providers in productivity and energy efficiency
improvement sector. Learnings from qualitative discussions
discussions indicate that very few vendors include Energy
Efficiency as a promotional feature of their equipment and machinery. This generates a need for
identification of target groups comprising of such equipment/technology vendors.
Executing Agencies for the
e Project
the project, to closely monitor and support
support various Project activities in the cluster. IamSMEofIndia is
entrusted with the role of coordination of project activities in the cluster, and capacity building of MSMEs
and industry association. Contact details of IamSMEofIndia are provided below for reference.
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Contact Person: Mr Rajive Chawla, Chairman
Address:
FSIA Park, Opp. Plot No. 23, Sector-24
Faridabad
Ph:
+91 98101 54568
Email:
chairman@iamsmeofindia.com
DESL and PwC serve as Project Development Partners and Media & Outreach Partners respectively.
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F.2. Demographic Profile of Faridabad Industrial
cluster
qualitative tools. Such demographic characteristics include preferred language of communication, level of
formal education, sector-specific
specific experience, typical working day and person-specific
person specific factors favouring
Faridabad Industrial cluster demonstrates almost universal acceptance of English and Hindi as preferred
spoken languages. 100% of the participants in unit level survey stated their preference of Hindi followed by
English 95%. The trend is also supported by observations of qualitative research.
% of respondents
100
95
English
Hindhi
Figure F.2.1: Preferred spoken language in Faridabad Chemicals cluster
It can be seen from above figure that both English and Hindi are effective languages for communication in
Faridabad.
Typical day in working life
A small segment of MSME units (18%) operate in 3 shifts of 8 hours each. 24% of surveyed units operate in
2 shifts of 12 hours each. The largest segment of MSME units (59%) operates in a single shift. Figure F.2.2
shows the distribution of surveyed MSME units with respect to number of hours of operation.
18%
1 Shift
24%
2 shift
59%
3 shift
Figure F.2.2: Distribution of MSME units with respect to number of shifts
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Sector specific experience
Majority of the MSME unit owners are well educated and they are having very rich experience in their own
business sector. More than 55% owners have experience of 20 years and more as shown in Figure F.2.3.
7%
7%
22%
0--10
11---20
21
21-30
31
31-40
21%
41 & more
43%
Figure F.2.2: Distribution of sector-specific
sector specific experience of MSME unit owners in Faridabad
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Kolhapur Foundry Cluster - Financing Energy Efficiency at MSMEs

Transcription

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