The document summarizes a New Zealand workshop discussing opportunities for linking business clusters in India and New Zealand. It outlines the agenda which includes introductions, examples of dairy and wool cluster interactions between the two countries, and a discussion on future potential cluster linkages. Examples provided include opportunities in the aviation, technology, building products, healthcare and other industries. The workshop aims to identify ways for large New Zealand clusters to partner with related small clusters in India to create international business opportunities.

1. New Zealand Workshop
“Linking clusters in a large economy (India)
with clusters in a small economy (New
Zealand) to create opportunities for
international business.”1
CEO Visit

2. Agenda
• Introductions – Alan Koziarski
• A little theory
• A few examples
– Dairy and Wool– Cliff Fuller
– Auckland – Stephen Cavanagh
• A look at the Future
• Discussion
• What do you want from a TCI conference in New
Zealand?
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3. The New Zealand Team
• Cliff Fuller, Trade Commissioner, Delhi, NZTE
• Gareth Chaplin, Chief Economist, NZTE,
• Stephen Cavanagh, Auckland Tourism, Events,
Economic Development
• Paul Frater, Green Chip Ltd
• Ifor Ffowcs Williams, Cluster Navigators Ltd
• Alan Koziarski, Regional Director, SSEA, NZTE
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4. Quiz Questions
1. Who wrote “Small is Beautiful”
2. Who wrote “Who Says Elephants’ Can’t Dance”
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5. Add Lustre to your Clusters
• Action
• Firms matter most
• Value chains
• Clusters
• The business environment can be changed
• Future - focus on where the action is heading (3-5
years)
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6. Only Companies
Company 2
Large vertically integrated companies doing everything
Company 1
CustomerRaw Materials Manufacturing DistributionR&D
Generalised Value Chain
Design

7. Local Competitiveness
Specialised companies, vertically integrated regions
(clusters) – the cluster, generally regionally based, tried to
do everything
CustomerRaw Materials Manufacturing DistributionR&D Design
Generalised Value Chain

8. Region Region
“New Clustering”
Specialised companies, specialised regions, global
integration – the global integrator will win
CustomerRaw Materials Manufacturing DistributionR&D Design
Generalised Value Chain
Region
Global Integration Function

9. Mustering the Clusters
• Small economies need to internationalise
• Enhancing the effectiveness generates opportunities
– Infill of an identified gap as a supplier of a service or
product
– Partner in R&D, innovation,
– Market
– Outsourcing of BPO
– Manufacturing in market
– Distribution channels and logistics
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10. Small is Beautiful Isn't It?
• Start on your knees and work
your way down
• Price
– Licences 1 tenth of Western
prices
– Need to meet price expectations
• Just about all interactions are
unequal
• Niche market segments, small
scale, small volume
• Identify gaps and seek most
appropriate solution
– World class, appropriate scale,
brand fit
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11. ISSUES AND OPPORTUNITIES
Cliff Fuller, NZ Trade Commissioner, Delhi
Selected Cluster Interactions – Dairy and Wool
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12. Quiz Questions
1. ..
2. ..
3. Which country has the largest dairy industry?
4. Which country is the largest dairy exporter?
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13. Dairy
India NZ
Milk production ( million
metric tonnes)
110 16
Milk supply/consumption by
2021 (million metric tonnes)
180 20
Per capita consumption per day 265 grams 11 litres
% of world production 15% 2%
% growth in milk production 3% 2.5%
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CEO Visit

14. But it is Regional
Punjab National average
Per capita
consumption of
milk
950 gms 265 gms
Total Milk
production
9.2 million MT -
Average yield per
day (crossbreed)
>9.01 litres <5 litres
Average production
per day
>14 litres < 5 litres
Average herd size 7-8 milking animals 2-3 milking animals
Milk from organised
dairy farms
20% 2%
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CEO Visit

15. 15

16. Wool cluster
• Long history of artisan carpet
weaving in Bhadohi / Mirzapur
• Modern trade established by
Iranian dealers in 1950
• Import wool from overseas and
blend with local coarse wool,
mainly from Rajasthan
• Spin into yarn in Rajasthan –
Bikaner is the hub
• Convert into handmade carpets
in Uttar Pradesh
• Export to consumers in USA,
Europe
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17. Woollen carpets – Indian cluster
• The carpet belt: Bhadohi – Mirzapur – Varanasi
• 300 carpet mills
• 1 -2 million employees
• All India Carpet Manufacturers Association
• Carpet Export Promotion Council (Delhi)
• Indian Institute of Carpet Technology
• Hand-knotted hand-tufted
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CEO Visit

18. Woollen yarn mills
• Rajasthan: 60% in Bikaner
• 50 spinning mills
• 15,000 people
• New Zealand supplies 12 - 14 million kg or 35%
• Other countries supply 30% - India supplies 35%
• NZ yarn is strong, clean, scoured before export
• Most yarn is blended
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CEO Visit

19. New Zealand wool cluster
• Canterbury
– Sheep
– NZ Wool Services exports 65% wool from NZ to India
– Wool Services of NZ - Fernmark
– Wool Research Organisation NZ / Canesis / AgResearch
– Lincoln University
• Hawkes Bay
– Sheep
– NZ Wool Testing Authority
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CEO Visit

20. Looking to the future
• Lower costs
• Social accountability
• Sheep breeding in India to improve local wool
• Marketing: promote wool vs synthetics
• New products, new characteristics
• Education, R & D links
• NZ example: Icebreaker with NZ Merino
• Missing link: the market
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21. ISSUES AND OPPORTUNITIES
Stephen Cavanagh
Selected Cluster Interactions
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22. Quiz Questions
1. Who wrote “Small is Beautiful”
2. Who wrote “Who Says Elephants’ Can’t Dance”
3. Which country has the largest dairy industry?
4. Which country is the largest dairy exporter?
5. Which country has the highest score in a single test
innings?
6. Which country has the lowest?
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Answers

23. DISCUSSION AND WORKSHOP
Questions
Divide
What should large clusters do when dealing with small clusters? Why?
What should small clusters do when dealing with large clusters? Why?
What do expect from a TCI Conference in New Zealand?
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CEO Visit

24. Future Cluster Linkages
• Aviation: Bangalore – Christchurch
• Apple technology: Himachal Pradesh – Hawkes Bay
• Building products: Delhi - Auckland
• Earthquake engineering: Delhi – Wellington
• Wine: Nashik – Marlborough
• Health IT: Hyderabad – Auckland
• Wood: Kandla / Bangalore – New Zealand
• Boat building: Kochin / Goa – Auckland
• Natural gas vehicle industry?
• Business Services
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CEO Visit

25. Media & Entertainment
• Demographics + Economic growth
• Narrowcasting - targeting niche styles
• Regional – local content in local language
• International – media market outside India
• Organised funding – capital + corporatisation
• Digitisation – Analog to digital
• Convergence – Entertainment + Information +
Telecommunications
• Deregulation – Policy + framework for co-production
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CEO Visit

26. Connecting Bollywood and Wellywood
• Destination – Tourism NZ
• Film location – Film NZ, Kuran
• Training – Media Design School
• Special effects – Weta Workshop
• Post production – Park Road
• Advertisement streaming- eBus
• Cinema ticketing – Vista
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CEO Visit

27. Future Film
• Co Production Agreement between India and New
Zealand in Film Production
• Location benefit in New Zealand (Film NZ can support;
Film Commission can provide incentives for both small /
medium and large budget films)
• Digital & Visual Effects support (Weta, Park Road Post)
• Connecting with Line Producers in NZ for film shoot
• Animation and Gaming technology from NZ
• Adventure Sports – Reality Shows (Khatron ka Khiladi)
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CEO Visit

28. Indian Dairy Scene
• India’s demand for milk is likely to grow at 5% per annum, whereas milk production is growing only at 3% !. New
Zealand on the other hand exports 95% of its dairy production.
• Improvements in productivity, efficiency and innovation of the NZ dairy sector have been key contributors to
making NZ one of the leading dairy players in the world. NZ technology can assist the Indian dairy sector to
improve productivity which is the biggest challenge facing the Indian dairy sector.
• A dairy technology cluster between Hamilton NZ and Ludhiana Punjab is one way to focus and build a relationship
that works for both sides.
• There are significant dairy technology and service providers clustered around Hamilton
– Trutest Ltd (milk meters, electronic weighing systems, electric fences, medical electronics)
– DEC International (controlled drug release technology)
– NDA Engineering (dairy engineering)
– Gallagher Group ( dairy farm fencing)
– Otenz Group (dairy milking systems and processing plants)
– Livestock Improvement Corporation (LIC) and Ambreed (dairy genetics).
– Innovation Waikato
– SourceWorld
• Punjab is the top state in commercial dairy farming with Punjab government funding and support to enable
uptake of modern dairy technology along the entire dairy supply chain – from farm to plate. The State has a large
number of dairy farmers/farms, milk producers, processors, veterinary service providers increasingly moving
towards modernising the dairy supply chain. There is a good scope for building key relationships leading to
opportunities and deals for NZ.
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CEO Visit
Hand out only

29. Quiz Answers
1. Who wrote “Small is Beautiful” – E.F Schumacher
2. Who wrote “Who Says Elephants’ Can’t Dance” - Louis
V. Gerstner Jr
3. Which country has the largest dairy industry? - India
4. Which country is the largest dairy exporter? – New
Zealand
5. Which country has the highest score in a single test
innings? 962/6, in 1997, Sri Lanka
6. Which country has the lowest? 26, in 1955, New
Zealand
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