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Evaluation Study MSE Cluster Development - Ministry of Micro ...

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Chapter No:2 – The General Pr<strong>of</strong>ile <strong>of</strong> Sampled <strong>Cluster</strong>sTable No. -2.2 (Contd.)Secondary Goods Based <strong>Cluster</strong>sSl <strong>Cluster</strong> Small <strong>Cluster</strong> Large <strong>Cluster</strong> NCU(S)(L)16 Fan Industry <strong>Cluster</strong> Hyderabad √ 30017 Foundry <strong>Cluster</strong> Ahmedabad √ 7618 Plastic <strong>Cluster</strong> Aluva √ 10819 Sewing Machine <strong>Cluster</strong> Ludhiana √ 80020 Surgical Instruments <strong>Cluster</strong>√ 600Baruipur21 Wet Grinder <strong>Cluster</strong> Coimbatore √ 70022 White ware <strong>Cluster</strong> Khurza √ 494Note: S - Small <strong>Cluster</strong>- Upto 360 constituent units.L - Large <strong>Cluster</strong>- More than 360 constituent units.NCU- Number <strong>of</strong> constituent units.If the geographical spread is considered along with the number <strong>of</strong> constituent units itcould be concluded that the cluster density in the second group tends to be generallyhigher than that observed for the first group.2.2.2 Size and Scale <strong>of</strong> Activity as Reflected by TurnoverThe magnitude <strong>of</strong> the average turnover is a fairly realistic reflection <strong>of</strong> the ‘scale <strong>of</strong>operations’ <strong>of</strong> the individual units in a cluster. However one must hasten to add thatthese averages conceal the degree <strong>of</strong> heterogeneity that may exist in each cluster andare likely to underestimate the turnover <strong>of</strong> the larger units, and like wise overestimatethose <strong>of</strong> the very small constituents. However as a first pass, these averages do give usa fair picture <strong>of</strong> the scale <strong>of</strong> operations. These figures also reflect the level <strong>of</strong> technologyand capital intensity that exists in the individual units <strong>of</strong> the cluster. As the scale <strong>of</strong>operations in a unit increases it is normally expected that the capital intensity would alsoincrease, and the technological processes involved would also tend to become morecomplex and sophisticated. It is also important to note that all the individual units in acluster may not be in a position to uniformly scale up their activities, and the relatedcapital intensity, resulting in some lagging behind. This uneven development <strong>of</strong> thecluster leads to increasing the heterogeneity within the cluster. It is now well recognizedthat heterogeneity as against homogeneity has important implications for clusterdevelopment through collective action. Democratic participation and collective actionthrough cooperation is the essence <strong>of</strong> the cluster development programme. It istherefore extremely important to carefully assess the turnover <strong>of</strong> each unit in the clusterwhich along with cluster density enables policy designers to determine the clusterconfiguration. It is only on the basis <strong>of</strong> a cluster configuration that clusters can beidentified and carefully selected and prioritized to initiate the most appropriate set <strong>of</strong>interventions that are likely to deliver tangible results in the shortest possible time.These tangible results are highly demonstrative, and are the most effective catalyst <strong>of</strong>cluster development.The aggregated turnover <strong>of</strong> each cluster in our sample both before and after selectionand intervention are presented in Table 2.3. This table also indicates the number <strong>of</strong>constituent units, as well as the average annual turnover <strong>of</strong> each unit. The figures on31

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