The cluster development approach is important for the survival of medium small and micro enterprises (MSMEs) in the State as it adds strength to the units, said Harmander Singh, Industries Commissioner and Director of Industries and Commerce.
He was speaking at the inauguration of a five-day exhibition on sourcing and manufacturing ‘SOUMEX 2010', organised by National Small Industries Corporation and Tamil Nadu Small and Tiny Industries Association at Chennai Trade Centre on Wednesday.
Mr. Singh said the State has 12 approved clusters and 12 more are in the pipeline. “One can work on large quantities of uniform quality in the cluster approach and this improves the bargaining and negotiating skills of the units,” he said.
The State has the maximum number of MSMEs and they account for 16 per cent of such enterprises in the country and provide work to 45 lakh people.
P. Selvam, Additional Chief Secretary, Micro, Small and Medium Enterprises Department, said the State introduced the MSME policy in 2008, and there were plans to establish one industrial estate in every block. Priority would be given to backward districts, he said. K.R. Thangaraj, president, TANSTIA, said poor marketing skills and lack of timely help from banks are a few reasons why small and medium enterprises are closing down. He said according to survey by the Government of India of the four lakh registered SMEs in the State, 79,000 are sick.
The NSIC, according to P. Udayakumar, its Director (Planning and Marketing), plans to conduct similar expos in five other cities across the country. Aspiring vendors, companies supplying to auto ancillaries, public sector undertakings, and financial institutions are participating in SOUMEX, which would be on till December 19.
