A Study on Cluster Development of Papad Industry in Uttarsanda

4,447 views

Published on

Published in: Business, Technology
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
4,447
On SlideShare
0
From Embeds
0
Number of Embeds
5
Actions
Shares
0
Downloads
118
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

A Study on Cluster Development of Papad Industry in Uttarsanda

  1. 1. Weekly Lecture Series on 5th October 2011 CMS DDU
  2. 2. ObjectivesTo find the reasons behind this Cluster DevelopmentFind the circumstances under which it can be replicate atsome other location alsoTo Find the Market Leader and know its USPComparison Between Papad Cluster of Uttarsanda andLijjat Papad CMS DDU
  3. 3. Research Design1. Sources of Data : Primary and Secondary sources2. Primary Data Collection Method: Semi- Structured Interviews3. Research method : Descriptive4. Method of contact : Personal Interview5. Sampling Method : Snow Ball6. Sample Size :4+17. Sampling Plan : 4 – Papad manufacturers of Uttarsanda and 1 – Machine Designer(seller) CMS DDU
  4. 4. About UttarsandaUttarsanda is predominantly a farmingcommunity. Uttarsanda Peoples Cooperative BankLimited was established on 9th April 1940 to helpthe local businesses and farmers. On 1st March1967, the Bank of Baroda also opened its branchoffice. To help the milk producers, UttarsandaMilk Producers Cooperative was started in 1951.Due to the location along the railway line andclose proximity to Nadiad and Anand, Uttarsandahas attracted a variety of small industries. Thereare several Cold Storage houses, Cement spunpipe factories, Ice-crème and Papad Factories.When tobacco was a very attractive cash crop,there were several tobacco storage warehouses. CMS DDU
  5. 5. Introduction Papad is a popular and tasty food item in the Indian diet since many centuries. It is essentially a wafer-like product, round in shape and made from dough of powdered pulses, spices, powdered chilly and salt. Variety of pulses and proportion of pulses and spices varies from region to region depending upon preferences of local people whereas certain varieties are popular on a larger scale. PFA (now, FSSAI) and BIS (IS:2839) standards CMS DDU
  6. 6. What is Business Cluster?A business cluster is a geographic concentrationof interconnected businesses, suppliers, andassociated institutions in a particular field.Clusters are considered to increase theproductivity with which companies can compete,nationally and globally.Clusters are also very important aspects ofstrategic management. CMS DDU
  7. 7. Prof. Michael Porter claims that clusters have the potential to affect competition in three ways:1. By increasing the productivity of the companies in the cluster,2. By driving innovation in the field, and3. By stimulating new businesses in the field. CMS DDU
  8. 8. Types of Business Clusters By Development1. Geographical cluster : Papad Industries in Uttarsanda2. Sectoral clusters : A cluster of businesses operating together from within the same commercial sector3. Horizontal cluster : Interconnections between businesses at a sharing of resources level e.g. knowledge management4. Vertical cluster : i.e. a supply chain cluster CMS DDU
  9. 9. By Knowledge1. Techno clusters : These clusters are high technology-oriented, well adapted to the knowledge economy, and typically have as a core renowned universities and research centersEx: Silicon Valley2. Historic knowhow-based clusters : These are based on more traditional activities that maintain their advantage in know-how over the years, and for some of them, over the centuries.Ex: Kites in Nadiad CMS DDU
  10. 10. • Low Price USPHistoric • Availability of Skilled Manpower – large know Production & Productivity – low cost how- • Storage Facility basedclusters • Each kites moves/passes from different home to home Mass • Production in Continuous flowProduc tion CMS DDU
  11. 11. 3. Factor Endowment clusters :Ex:1. Pataveliya at Kanjari-Boriyavi Railway crossingEx:2. Rice Mills in KhambhatEx:3. Agarbathies in Shrirampuram, Banglore CMS DDU
  12. 12. Now, back to Papad• Traditionally this activity was confined to household making by sun-dry but in view of increasing demand and availability of machinery (automation) it has now been developed in cottage and small scale sector to Ltd Company.• Three types of processing techniques used are;1. Handmade and then Sun-dry2. Semi-automatic3. Fully automatic (Dryer is Used) CMS DDU
  13. 13. Basic Manufacturing Process CMS DDU
  14. 14. To find the reasons behind this ClusterDevelopmentFind the circumstances under which it can bereplicate at some other location alsoTo Find the Market Leader and know its USPComparison Between Papad Cluster ofUttarsanda and Lijjat Papad CMS DDU
  15. 15. Beauty of Business Clusters One company will succeed, Competitor & supplier will immerge..... Easy Entry & Low Risk All raw material was available here. He Initiate with Risk. No business can start without Risk and can start from smaller Investment‘• Since 1980• Started using Pendle Machine with investment of Rs.10000• Direct Marketing(Door to Door selling)Said Mr. Trivedi, Uttam Papad, Pioneer of this Cluster CMS DDU
  16. 16. • Job Work• Daily basis pay to workers• Scheme of EMI on Machinery by Kirtiraj• There are not much seasonal fluctuations in sales of Papad but demand generally goes up by 15 to 20% during winter season(Nov.– Feb.)• But for other allied products sell time is only diwali season. so, 60-65% contribution of annual sells in this duration only• Gov. Provides Subsides for Starting the Business as well as for Expansion• Industry Enjoys Tax Exemptions CMS DDU
  17. 17. Example of Automobile Industry @ Sanad CMS DDU
  18. 18. To find the reasons behind this ClusterDevelopmentFind the circumstances under which it can bereplicate at some other location alsoTo Find the Market Leader and know its USPComparison Between Uttarsanda Cluster Papadand Lijjat Papad CMS DDU
  19. 19. CMS DDU
  20. 20. Ingredients UsedFor 1 kg Papad,• Urad Dhal flour (Black Gram) – 1 kg• Black Pepper Dal – 25 gm• Soda-Bicarbonate (NaHCO3) – 35 gm• Salt– 35 gm• Asafoetida (Hing) – 12.5 gm• Edible Oil – 25 gm• Flavors (as per choice) - ground black pepper or garlic, or chili• Water - 350 ml Supply Channel Technology CMS DDU
  21. 21. To find the reasons behind this ClusterDevelopmentFind the circumstances under which it can bereplicate at some other location alsoTo Find the Market Leader and know its USPComparison Between Uttarsanda Cluster Papadand Lijjat Papad CMS DDU
  22. 22. USP of Market LeaderISO 9001:2008 and 5SStrengthen Distribution NetworkC-n-F NetworkDealersRetail outletsExport Network (U.S., U.K., Australia, Africa)Turnover : 3.5 Cr. - includes Exports of 65lacs CMS DDU
  23. 23. To find the reasons behind this ClusterDevelopmentFind the circumstances under which it can bereplicate at some other location alsoTo Find the Market Leader and know its USPComparison Between Papad Cluster ofUttarsanda and Lijjat Papad CMS DDU
  24. 24. V s .CMS DDU
  25. 25. Parameter Uttarsanda Lijjat Papad Cluster Established in Year 1980 – 2000 1968 Annual Sales Turnover 20 – 25 > 65O (Rs. in Crores) include allied productsExports (% of total sales < 10 < 10 in Rs.) Price Range / 80 – 120 163 – 182 M.R.P. (Rs. / kg) Self Life (months) 2-3 3Taste (based on sensory Average Very Good evaluation) Technology Machine Made Handmade No. of Units 7 – 8 (regular) 73 Branches and 12 – 15 (only seasonal) 27 Divisions Employment 200 – 500 > 42000 woman CMS DDU
  26. 26. Issues Identificationo Fast life and Today, majority doesn’t know how to make Papad?o Technology not strengthen to compete traditionalo Round shape of Papad IDEA !!!!o NaHCO3 and NaClo Quality Standardso Think Beyond Papad i.e. Pickle CMS DDU
  27. 27. References lijjat.com wikipedia.org/wiki/Business_cluster indianclusters.org/ ibef.org/download/Gujarat_190111.pdf craftofgujarat.com/showpage.aspx?contentid=1127 mapsofindia.com REPORT ON RURAL CLUSTER DEVELOPMENT - A CASE STUDY By Society for Economic and Social Transition, New Delhi CMS DDU
  28. 28. Shri. Jitubhai Trivedi, Utam PapadShri. Priteshbhai Patel, Harsh PapadShri. Kanubhai Patel, Shreeji PapadShri. Ismilebhai Vohra, Yash PapadShri. Munnabhai, Kirtiraj Foods, AnandProf.(Dr.) Nareshbhai Patel, CMS DDUProf.(Ms.) Mansiben Rathod, CMS DDUProf.(Ms.) Falguniben Pandya, CMS DDU CMS DDU

×