Export cluster to pull auto ancillary sector out of crisis

In an attempt to give a fillip to the Punjab auto ancillary industry, which is currently in a crisis due to intense competition from the Chinese market and minuscule demand from the domestic market, Mohali-based Centre for International Trade & Industry (CITI) is coming up with a cluster for exports of auto parts by March-end.

The first-of-its-kind cluster in the country will involve 30 small- and -medium scale industrialists and entrepreneurs from Mohali, Jallandhar and Ludhiana.

The cluster is based on the findings of a pre-feasibility survey conducted by CITI on the advantages in outsourcing auto parts manufacturing with an initial investment of Rs 25 lakh.

Sharing his perspective, Mohan Singh, director-general, CITI, said lack of resources was the reason why small-scale entrepreneurs of Punjab could not market their services overseas though they had excellent skill sets to render professional services.

"Buyers have been identified in the auto parts sector who can place bulk orders amounting to approximately Rs 150 crore as trial order for various range auto parts," stated Singh.

How well Punjab auto parts suppliers fared in the international market would depend on their technical capability, capacity to manufacture and timely delivery of bulk quantity, he said. "We will take care of the certification of the products from the top international certifying agencies as per the requirement of the importers and standards of the importing country," added Singh.

The scheme is expected to generate self employment for at least 30 professionals directly, and around 500 persons indirectly.

The total cost for developing this cluster will be around Rs 20-25 lakh, with CITI earmarking Rs 5 lakh and the balance to be generated through the cluster members' contribution

Singh said CITI was also planning to modernise the cricket bat industry in the Kashmir Valley through a cluster and cooperative approach. "We will be assisting the state government in arranging technical collaboration in the processing and manufacturing of cricket bat technology from the developed world, especially the UK and other technologically advanced countries," he said.