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Haryana industry shares resources to fight Chinese competition

CHANDIGARH: Micro & small scale industryin Haryana is opting for common facilities under the Centre-sponsored cluster development programme to tackle competition from cheap Chinese goods. The clusters offer common design centres, tool rooms, skill development centres, bulk buying of raw material and effluent treatment plants to cut costs and enhance quality.

implementsBSE 0.24 % and packaging in Karnal, surgical implements inBhiwani, textile in Panipat, leather goods inGurgaon, footwear in Faridabad, garments in Gurgaon, printing and packaging industryKarnal are the broad areas expected to benefit from the pooled resources.

"It is the first step to tackle the dragon invasion," says Ashwani Goel, a scientific instruments maker from Ambala. Goel caters to diagnostics, pathology and a few segments in the defence industry. He is particularly excited about the proposed optical centre based on German technology, tool rooms, and prism-finishing equipment that will come up as common facilities. He says, the clusters help in use latest research and bring in quality consciousness.

The state has identified 29 such clusters that will provide common facilities under the public-private partnership model across districts. Its industry department has tied up with Grant Thornton for technical assistance for a diagnostic study reports on the clusters. 
Ambala, for example, once housed 2,000 units, a number that has now reduced to 600.

"Learning from the Chinese is the only way out," says Karnal-based drugs maker RL Sharma. Common lab testing, bulk buying of raw materials and marketing are the key to the export market, says the owner of 
Oryx Pharma Private Limited. In Karnal, the makers of herbal, allopathic and food items have joined hands to contribute 10% and avail of the Rs 15 crore available for raising common facilities.

Confronting similar scenario of rising Chinese imports are the stainless steel utensils manufacturing clusters in Kundli and the footwear cluster in Bahadurgarh. The cheap Chinese imports have already turned many micro and small scale into mere traders of the imported products. It has put on stake survival of thousands of units as well as livelihood of tens of thousands of labour-force employed in the region.

"If the entrepreneurs work collectively it will improve the quality of their products and also facilitate raw material at low cost," says former director, 
Haryana Industries Department, TL Satyaprakash who initiated the cluster development programme in Ambala, Karnal, Panipat, Kundli, Bahadurgarh, Faridabad and Bhiwani.

Kundli Stainless Steel Houseware Association, with the technical assistance from Grant Thornton, has set up a special purpose vehicle. The SPV members have contributed 30.53% of the project cost for establishment of such a facility. The total contribution of Haryana is Rs 1.5 crore and support under the MSE-CDP of the DCMSME is expected to be Rs 10.5 crore.