ELCIA MSME CLUSTER

Micro, Small and Medium Enterprises (MSME) contribute nearly 45% of the manufacturing output, 40% of the exports, and 8% of the country’s GDP. They provide the largest share of employment after agriculture. MSMEs not only play crucial role in providing large employment opportunities at comparatively lower capital cost than large industries but also help in industrialization of rural & backward areas, thereby reducing regional imbalances, assuring more equitable distribution of national income and wealth.

Electronics City is a hub for MSME’s and there is a need for strengthening this sector by providing shared infrastructure for their development. The ELCIA CLUSTER is an SPV formed by a group of ELCIA MSME’s with the purpose of creating an industrial cluster under the guidelines issued by the Ministry of MSME, CDP Scheme, Govt.of India.

The ELCIA CLUSTER has availed the benefits and incentives in the form of grants and financial assistance from Government of India (GoI) and the Government of Karnataka (GoK) for the formation and establishment of an MSE industrial cluster. The Ministry of MSME, GoI has adopted the cluster development approach as a key strategy for enhancing the productivity and competitiveness as well as capacity building of Micro and Small Enterprises (MSEs) and their collectives in the country.

A Common Facility Centre (CFC) is set up in ELCIA Park with funding from GoK, Ministry of MSME, GoI and from its own member organisations. Most of the Small and Micro Enterprises (SMEs) lack the required infrastructure for R&D, machining, testing & calibration of products. This leads to major restrictions on productivity, compliance, and innovation. The setting up of the Common Facilities Centre (CFC) project is aimed at addressing these problems through a cluster approach.

PROJECT DETAILS

• Total Building Area (sq ft): 20,000 –located at ELCIA Park, ELCIA has leased it to ELCIA Cluster.
• The CFC will host
  1. Modern R&D module like CAD/CAM Designing, PCB Prototyping and Rapid Prototyping
  2. Advanced Testing and Certification modules like environmental testing, RF signal interference testing, RoHS testing and mechanical shock and vibration testing
  3. Electronics Testing and Certification
  4. Calibration and Machining Centre
  5. Training Centre
  6. Raw Material Procurement Centre and Product Display Centre
• Opportunities for our members
  1. Advanced levels of research and greater level of innovative product development
  2. Expand the CLUSTER’s market reach by at least 30% than the present level. There will be an additional 15 direct exporting units
  3. Increase in profit by 30 – 40%, a higher output, and no extra recurring cost
  4. Manufacture products of global standards adhering to international standard certification
  5. Promote R&D in the electronic and mechatronics industry by leveraging world class research and development centre at the CLUSTER
  6. Upgrade technology and bring it on par with global benchmark standards
  7. Create intellectual property with a vision to have at least 100 of them patented
• Total Project cost

Sl no.	Particulars	%	Sharing Pattern in INR(lakhs)
1	SPV Contribution	15	216.35
2	Grant-in-aid from GoI	70	1008.32
3	Grant-in-aid from GoK	15	216.352
	Total	100	1441.02

• GoI appointed KCTU as the implementing agency and the funds breakup is as below

Sl no.	Detail	Total Cost in INR (lakhs)
1	Land and its Development	0
2	Building and other Civil Constructions	75
3	Plant and Machinery ( including electrification)	1254.74
4	Misc. fixed assets	16.29
5	Preliminary & Pre- operative expense , maximum 2% of project cost	12.5
6	Contingency (2% building and 5% on plant & machinery	62.74
7	Margin money for working capital	19.75
	Total Project Cost	1441.02

• Cluster has received the complete funds from GoK and its SPV, GoI has released its first share of the funds and remaining is expected to release in a month. 1stset of machineries have been commissioned and the operations has started from 1st April 2017.
• The Present Executive Committee

Sl no.	Name	Designation
1	Mr. Muralidhar	President
2	Mr. PS Thind	Vice President
3	Mr. Veerabhadrappa	Secretary
4	Ms. Nandini B	Jt Secretary
5	Mr. Vaidyanathan A	Treasurer
6	Mr. Bakthavatchalam	Committee Member
7	Mr. AJ Hegde	Committee Member
8	Mr. Sriram Kumar	Committee Member
9	Ms. Sujaya Shashikiran​​	Committee Member