Executive Summary

The Auto-Component Cluster at Jamshedpur (Jharkhand) emerged after the setting up of AIADA (Adityapur Industrial Area Development Authority, Adityapur, Jharkhand) by the Bihar/Jharkhand Government foreseeing the growth of industry in the region. With a great beginning, the Auto-component cluster of Jamshedpur, today, comprises of large number of Micro, Small and Medium Enterprises.

The MSMEs of the cluster focus on a variety of auto-components items including general auto-components manufacturing, specialized components being designed and manufactured for supply to Tata Motors, TELCON, Hindustan Motors and others. The manufactured components include machined parts, fabricated parts, castings and forgings, plastics and rubber parts electrical parts and assemblies etc.

The ASIA, Adityapur Small Industry Association is a representative body for majority the industries situated in Jamshedpur/Adityapur industrial area and it includes hundreds of auto-components based industries within it. Several initiatives have been taken by the ASIA, for the growth of the auto-component cluster here. The cluster also has the unique distinction of having the institutional support from various central and local government organizations including Indo-Danish Tool Room (IDTR), National Metallurgical Laboratory (NML) etc. A strong sense of brotherhood exists amongst the cluster stakeholders.

There is a wide variety of auto-components being manufactured by the industries in this cluster. The process of production differs from one industry to another depending on the type of product being produced by the respective industry. Few of the industries manufacture products on a mass production basis while other do so on receiving confirmed orders.

The objective of this project has been to study of technological gaps that exist in the auto-component cluster of Jamshedpur. Initially an exhaustive list of companies operating in the region was prepared by door-to-door visit in the industrial area by volunteers. These volunteers collected information regarding name, address, contact information, type of products manufactured, and owner details and complied this data as a comprehensive directory. The second stage included a survey of the industries engaged in the manufacture of auto-components with the help of a questionnaire form. The questionnaire had been distributed initially through e-mail and later the data was collected with a visit to each of the respective industry, clarification of queries regarding the questionnaire were addressed and duly filled-up survey/ questionnaire collected for study. The survey response has been studied and also, interactions with the entrepreneurs were carried out. An Awareness program for the technology gap study project was organized at ASIA Office for sensitizing the cluster actors along with the support from ASIA.

The survey revealed that the Jamshedpur auto-component cluster primarily uses technology/processes with cannot be called high-tech in comparison to world standard. The assembly of the auto-component parts into semi-finished products and components is not automatic but manual. Also the cluster lacks in availability of skilled- technical workforce. There is a need to continuously run programmes to upgrade technical skill of the workforce, so that there is technical workforce available in the region in-spite of some exodus of the same to other parts of the nation. The cluster lacks the position in which other autoclusters are e.g. Pune- auto-cluster, Chennai auto-cluster etc. The adoption of newer technologies, like simulation deep-drawing of sheet-metal, investment casting, ceramic mould casting, evaporative mould casting, development of magnesium casting, advanced Post-casting treatments, energy conservation in casting industry, adoption of Automotive Aluminium Sheet Forming, use of coated and laminated sheets, use of polypropylene, nylon, polyurethane, carbon fibre for FRP, use of High Strength Steel, use of RTM technology, EASI technology, Glass Mat reinforced Thermoplastics) and SMC (sheet Moulding Compound) technology in the auto-component industry as prevalent in technologically advanced countries, is picking up slowly in Jamshedpur autocluster. Low level of exposure to advanced technologies and the hesitation of entering into newer market is an important factor in slow growth of the autocomponent industry around Jamshedpur. This ideology leads to tendency to cling to proprietary products / technologies and a high degree of secrecy in related matters. Also, the rapid change and evolution in technology is a worrying factors for most the cluster stake-holders.

Majority of the auto-component production facilities around Jamshedpur have raised technical issues pertaining to availability of quality manpower with required skill-set at reasonable salaries, product design and manufacture. The industry, in general, needs technical support for manpower training, product design/ testing and related issues. Industries of the cluster need technical up-gradation support, manpower training, production improvement as well as product diversification.

Industry association at Jamshedpur is taking necessary measures for cluster upgradation by way of organizing awareness programs. Emphasis has been given on closer interaction between the industry and the association with the knowledge partners (NIT, Jamshedpur) and hiring of expert consultants for the technological up-gradation.

A Nodal centre needs to be setup for continuous interaction with the local industry in the cluster. The proposed nodal centre would assist the industries in various areas of technology as per the auto-component industry value chain. Along with this, the nodal centre would provide skill development support as well. The study has identified some training needs and suggests training modules for rapid skill development in the auto component product design related to foundry, forging, sheet-metal, plastic-rubber parts and CNC programming, testing, inspection, production process simulation etc..

The assistance in terms of entering into joint ventures with the technological suppliers and OEMs would help the industries. Another remedial measure can be in the form of hiring expert consultants and forming their panel for assisting industry in terms of R&D, quality certification, etc. Awareness seminar on intellectual property, patent procedure and related area has also been identified.

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