The document discusses the establishment of an ELCIA MSME Cluster in Electronics City Industrial Township area. It provides context on India's growing electronics manufacturing sector and demand. The key points are: 1) The ELCIA MSME Cluster project aims to support electronics MSMEs through establishing a common facility center with machinery and equipment for concept to prototype development. 2) The total project cost is 14.41 crores to be contributed by the Government of India, Government of Karnataka, and ELCIA Cluster members. 3) Governance will include a Governing Council, CEO, and Technical and Commercial Committees to oversee operations and provide industry expertise.

1. ELCIA MSME CLUSTER
Presentation to Industry

2. CONTENTS
The Electronics Manufacturing
Revolution
The MSME Cluster Concept
ELCIA MSME CLUSTER

3. THE ELECTRONICS MANUFACTURING
REVOLUTION


4. “
”
SELL IN ANY COUNTRY OF THE WORLD BUT
MANUFACTURE HERE. WE HAVE GOT SKILL,
TALENT, DISCIPLINE, AND DETERMINATION TO
DO SOMETHING.”
– NARENDRA MODI, PRIME MINISTER, INDIA
Independence Day Address 15th August 2014

5. BETWEEN 2004 AND 2011 MANUFACTURING HIT A
SWEET SPOT, REGISTERING ANNUAL GROWTH OF
AROUND 7.25%. HOWEVER, DURING THE SAME
PERIOD IMPORTS GREW BY AN AVERAGE OF
23.75% WHILE THE CORRESPONDING GROWTH IN
EXPORTS WAS 21.25%!

6. ECONOMIC DEVELOPMENT THROUGH SUPPORTING THE
DEVELOPMENT & GROWTH OF THE ELECTRONICS
INDUSTRY
 The vision of the Department of Electronics & Information Technology (DeitY) is “the e-Development of
India as the engine for transition into a developed nation and an empowered society.”
 Over the last couple of decades India has been the epicenter of consumer demand fuelled by a
phenomenal GDP growth. The demand for high technology products, specifically electronic products has
registered significant growth and going by current estimates, the demand for electronics hardware in the
country is projected to increase from USD 45 billion in 2009 to USD400 billion by 2020 (Source: Task Force
Report).
 The estimated production in the country will reach USD 104 billion by the year 2020, creating a gap of USD
296 billion in demand and production.
 This creates a unique opportunity for companies in the ESDM (Electronic System Design & Manufacturing)
sector to look at India as their next destination to cater to the domestic Indian demand as well as act as an
exports hub.
 Leveraging this unique opportunity, the Electronics City Industries Association, has received the
government’s approval to set up 2 clusters one for ESDM and the other for MSME in Electronics City
Industrial Township area. We have also signed a strategic MoU with CISCO to set up Asia’s first innovation
hub for IOT and develop solutions for urban services, a growing market worldwide. Needless to say, this will
provide a fillip to the sector and build and nurture an ecosystem for electronics manufacture. Our vision is
to achieve 10% of the national hardware manufacturing revenues from Electronics City.

7. A WORLD OF OPPORTUNITIES

8. MSME CLUSTER CONCEPT

9. THE “CLUSTER’ APPROACH – A
CONTEXT
 The Ministry of Micro, Small and Medium Enterprises (MSME),
Government of India (GoI) has adopted the cluster development
approach as a key strategy for
 Enhancing the productivity and competitiveness and
 Building capacity of Micro and Small Enterprises (MSEs) and their
collectives in the country.
 Enabling providers of various services to industry, including banks
and credit agencies, to provide their services more economically,
thus reducing costs and improving the availability of services for
these enterprises.

10. OBJECTIVES OF THE CLUSTER
DEVELOPMENT SCHEME
 To support the sustainability and growth of MSEs by addressing common
issues such as improvement of technology, skills and quality, market
access, access to capital, etc.
 To build capacity of MSEs for common supportive action through
formation of self help groups, consortia, up gradation of associations,
etc.
 To create/upgrade infrastructural facilities in the new/existing industrial
areas/ clusters of MSEs.
 To set up common facility centers (for testing, training center, raw
material depot, effluent treatment, complementing production
processes, etc).

11. ELCIA MSME CLUSTER

12. BROAD GOALS
 a. To nurture the MSME in the manufacture of electronic
products
 b. To facilitate the development of supportive eco-systems for
MSME companies (including marketing; branding; research and
skills development)
 c. To augment the requirement of special machines in the
manufacture of electronic products

13. THE PROJECT
 Total project cost is ₹ 14.41crores. Contributions will be made as follows:
 GoI contribution is ₹ 10.08 crores
 GoK contribution is ₹ 2.16 crores and
 ELCIA Cluster members contribution is ₹ 2.16 crores
 Set up a Common Facilities Centre for MSME.
 The building for this set up will be provided by ELCIA to support the objectives of
the Cluster. The completed building will be handed over to the cluster in Feb/Mar
2015.
 The 20,000 sqft. facility will house machinery and equipment that is intended to
support concept to prototype development.
 *List of machines available *

14. CLUSTER – GOVERNANCE

15. ORGANIZATION STRUCTURE
ELCIA MSME
Governing
Council
CEO –
ELCIA MSME
Cluster
Technical
Committee
Commercial
Committee
Admin. Assistant

16. COMPOSITION OF THE GOVERNING COUNCIL
The Governing Council is also referred to as the Managing
Committee
 The Governing Council will comprise a total of 9 members
 Office Bearers in the Governing Council/Managing Committee
 1. President
 2. Vice President
 3. Secretary
 4. Treasurer

17. ROLE OF THE GOVERNING COUNCIL
 To make strategic decisions regarding the purchase of machinery, expansion
of infrastructure as well as partnerships with industrial bodies; organizations
and the government to further the interests of the MSME Cluster.
 To oversee the functioning of the ELCIA MSME CFC facility
 To formulate policies and processes for the smooth functioning of the facility
 To frame rules regarding membership, voting rights and use of the facility
 To resolve disputes, if any, among members and others concerning the
facility
 To hire required personnel to support the functioning of the facility
 To guide the functioning of Technical and Commercial committees
 To showcase and market the CFC and any other facilities that the SPV will
create, and ensure full utilization of the machineries and equipment.

18. ROLE OF THE TECHNICAL COMMITTEE
 To provide technical expertise and consultancy to the smooth
functioning of the facility
 To guide the procurement of new machinery
 To guide the maintenance of existing machinery
 To approve the portfolio of products that the facility will produce
 To craft and implement approaches that nurture an ecosystem
for innovation

19. ROLE OF THE COMMERCIAL
COMMITTEE
 To provide market research reports for various products across
geographies
 To conduct periodic surveys to study needs to inform the
development of products
 To frame and implement approaches to target products for various
customer segments and geographies
 To organize events, seminars and workshops and other interventions
that strengthen the network of ecosystem partners and support
capacity building for entrepreneurs
 To build relationships with associations, markets, governments etc., to
support the aims of the cluster.

20. THANK YOU