iedp presentation 2004-05

Integrated EntrepreneurshipDevelopment Programme (IEDP)

OnManufacturing of Rubber Products at Tripura

Programme Supported By SIDBI

ByARUN KESHAV

Project Officer, EntrepreneurshipDevelopment Institute of India (EDII),

Project Office, Agartala, Tripura

OnManufacturing of Rubber Products at Tripura

Programme Supported By SIDBI

ByARUN KESHAV

Project Officer, EntrepreneurshipDevelopment Institute of India (EDII),

Project Office, Agartala, Tripura

1IEDP TRIPURA 2004-05 Project Officer Arun Keshav

IEDP at a glancePlace of Implementation: Agartala, Tripuracommencement of training: 29 November 2004completion of training: 30 December 2004Number of applications made: Fifty five (55)Number of candidates Selected: Twenty three (23)Trainees completing the training: Twenty one (21)Dropouts: Two (2)Follow up meeting conducted: Two (2)

Place of Implementation: Agartala, Tripuracommencement of training: 29 November 2004completion of training: 30 December 2004Number of applications made: Fifty five (55)Number of candidates Selected: Twenty three (23)Trainees completing the training: Twenty one (21)Dropouts: Two (2)Follow up meeting conducted: Two (2)


Implementation of IEDPImplementation of IEDP

The IEDP has been implemented in IVphases

Need Assessment StudyNeed Assessment StudyClassroom TrainingClassroom TrainingTechnical TrainingTechnical TrainingNeed based FollowNeed based Follow--upsups

The IEDP has been implemented in IVphases

Need Assessment StudyNeed Assessment StudyClassroom TrainingClassroom TrainingTechnical TrainingTechnical TrainingNeed based FollowNeed based Follow--upsups


Need Assessment StudyNeed Assessment StudyNeed Assessment StudyNeed Assessment Study


Need Assessment StudyNeed Assessment StudyA SWOT ANALYSISA SWOT ANALYSIS

OPPORTUNITIES

LOCAL MARKET

BANGLADESH MARKET

NORTH-EAST MARKET

NICHE SEGMENTS OF THE MARKETS

TAX EXEMPTIONS AND SUBSIDIES PROVIDED BY

THE STATE AND THE CENTRAL GOVERNMENT

THREATS

SMALL OVER ALL MARKET SIZENEGLIGIBLE SIZE OF INDUSTRIAL MARKETLOW SDPCOMPETION FROM MANUFACTURERS OUTSIDE THESTATE ENJOYING ECONOMIES OF SCALE INPRODUCTION HELPING THEM ACHIEVE LOWPRODUCTION COST AND GOOD QUALITYTHE TECHNOLOGY EMPLOYED FOR PRODUCTION ISMAINLY CAPITAL INTENSIVE AND THECOMPETITORS WOULD HAVE INVESTED HEAVILY,HENCE CREATING AN ENTRY BARRIER.

STRENGTHSANNUAL PRODUCTION OF NATURAL RUBBER IN THE

YEAR 2003-2004 14,905 Mt SECOND HIGHEST

PRODUCTION AMONGST THE STATES IN THE

COUNTRY.

AVAILABILITY OF LABOUR

ESTABLISHED DISTRIBUTION CHANNEL

WEAKNESSESNO RUBBER TECHNOLOGIST IN THE STATERUBBER CHEMICALS NOT AVAILABLE LOCALLYNO KNOWLEDGE BASE AVAILABLE FOR INDUSTRYSUPPORTTECHNICALLY SKILLED PERSONNELS NOTAVAILABLE IN THE STATENO LOCAL SUPPLIER OF REQUIRED MACHINERIESMAINTANENCE OF MACHINERY A COSTLY AFFAIR RAIL HEAD NOT AVAILABLENEEDED RAW MATERIAL AVAILABILITY MAY BE APROBLEMLOGISTIC PROBLEMTECHNICAL BACKWARDNESSLOW PRODUCTIVITY OF LABOURWEAKENING OF DISTRIBUTION NETWORK DUE TOINSURGENT ACTIVITY IN THE STATE HAMPERING ITSREACH IN INTERIOR AREAS.

OPPORTUNITIES

LOCAL MARKET

BANGLADESH MARKET

NORTH-EAST MARKET

NICHE SEGMENTS OF THE MARKETS

TAX EXEMPTIONS AND SUBSIDIES PROVIDED BY

THE STATE AND THE CENTRAL GOVERNMENT

THREATS

SMALL OVER ALL MARKET SIZENEGLIGIBLE SIZE OF INDUSTRIAL MARKETLOW SDPCOMPETION FROM MANUFACTURERS OUTSIDE THESTATE ENJOYING ECONOMIES OF SCALE INPRODUCTION HELPING THEM ACHIEVE LOWPRODUCTION COST AND GOOD QUALITYTHE TECHNOLOGY EMPLOYED FOR PRODUCTION ISMAINLY CAPITAL INTENSIVE AND THECOMPETITORS WOULD HAVE INVESTED HEAVILY,HENCE CREATING AN ENTRY BARRIER.

STRENGTHSANNUAL PRODUCTION OF NATURAL RUBBER IN THE

YEAR 2003-2004 14,905 Mt SECOND HIGHEST

PRODUCTION AMONGST THE STATES IN THE

COUNTRY.

AVAILABILITY OF LABOUR

ESTABLISHED DISTRIBUTION CHANNEL

WEAKNESSESNO RUBBER TECHNOLOGIST IN THE STATERUBBER CHEMICALS NOT AVAILABLE LOCALLYNO KNOWLEDGE BASE AVAILABLE FOR INDUSTRYSUPPORTTECHNICALLY SKILLED PERSONNELS NOTAVAILABLE IN THE STATENO LOCAL SUPPLIER OF REQUIRED MACHINERIESMAINTANENCE OF MACHINERY A COSTLY AFFAIR RAIL HEAD NOT AVAILABLENEEDED RAW MATERIAL AVAILABILITY MAY BE APROBLEMLOGISTIC PROBLEMTECHNICAL BACKWARDNESSLOW PRODUCTIVITY OF LABOURWEAKENING OF DISTRIBUTION NETWORK DUE TOINSURGENT ACTIVITY IN THE STATE HAMPERING ITSREACH IN INTERIOR AREAS. 5

IEDP TRIPURA 2004-05Project Officer Arun Keshav

Policy Recommendations for plugging in theidentified gaps

Any state government department, for ensuring a regular “JustIn Time” supply of rubber chemicals, must set up, a chemicaldepot. Also supply of chemicals at subsidized rate may bethought of at this stage. This would help the manufacturers tocut down their inventory level and lower the production costdue to availability of subsidized chemicals. If it is difficult toestablish a new chemical depot Manimalyar Pvt. Ltd, (a jointventure of Rubber board and Rubber producers society),having licenses to deal in all types of rubber chemicals, shouldbe used as a distribution channelIn the later stages, when thedemand for chemical increases and the industry matures a bit,private suppliers can step in.

Any state government department, for ensuring a regular “JustIn Time” supply of rubber chemicals, must set up, a chemicaldepot. Also supply of chemicals at subsidized rate may bethought of at this stage. This would help the manufacturers tocut down their inventory level and lower the production costdue to availability of subsidized chemicals. If it is difficult toestablish a new chemical depot Manimalyar Pvt. Ltd, (a jointventure of Rubber board and Rubber producers society),having licenses to deal in all types of rubber chemicals, shouldbe used as a distribution channelIn the later stages, when thedemand for chemical increases and the industry matures a bit,private suppliers can step in.


Policy Recommendations for plugging in theidentified gaps Contd...Contd...

A full time Rubber technologist must be appointed by TFDPC fortheir Training cum production center.Rubber board may be requested to open training and technicalconsultancy division at Agartala.Ammoniated field latex must be supplied by TFDPC to facilitatethe growth of latex-based product manufacturing units.Engineering college should introduce B Tech chemicalEngineering with a specialisation in Rubber technology. Also thepolytechnic college should introduce short-term courses andcertificate courses in rubber technology.Proper database/ information base must be established.Institutions like DIC, SISI, NECON etc. must be given the task toconduct product wise feasibility study and to prepare a localisedinformation base.

A full time Rubber technologist must be appointed by TFDPC fortheir Training cum production center.Rubber board may be requested to open training and technicalconsultancy division at Agartala.Ammoniated field latex must be supplied by TFDPC to facilitatethe growth of latex-based product manufacturing units.Engineering college should introduce B Tech chemicalEngineering with a specialisation in Rubber technology. Also thepolytechnic college should introduce short-term courses andcertificate courses in rubber technology.Proper database/ information base must be established.Institutions like DIC, SISI, NECON etc. must be given the task toconduct product wise feasibility study and to prepare a localisedinformation base.

7IEDP TRIPURA 2004-05 Project

Officer Arun Keshav

Policy suggestions accepted...

A Meeting was called on by the Chief secretary, Govt. of Tripura onidentifying the opportunities and understanding the issues related tomanufacturing of rubber products at Tripura

was attended by Shri A.K. Krishna kumar,Commissioner, Rubber Board Shri Gopalkrishnan,Director Training and technical Consultancy,

Rubber Board Commissioner higher education, Govt. of Tripura M.D. Tripura Forest Development Plantation Corporation Ltd. (TFDPC

Ltd). M.D. Tripura Rehabilitation Plantation Corporation Ltd. (TRPC Ltd). Director and Addl. Secretary Industries and commerce, Govt. of Tripura Joint Rubber Production commissioner, Rubber Board, Agartala Arun Keshav, EDI, Agartala Office.

A Meeting was called on by the Chief secretary, Govt. of Tripura onidentifying the opportunities and understanding the issues related tomanufacturing of rubber products at Tripura

was attended by Shri A.K. Krishna kumar,Commissioner, Rubber Board Shri Gopalkrishnan,Director Training and technical Consultancy,

Rubber Board Commissioner higher education, Govt. of Tripura M.D. Tripura Forest Development Plantation Corporation Ltd. (TFDPC

Ltd). M.D. Tripura Rehabilitation Plantation Corporation Ltd. (TRPC Ltd). Director and Addl. Secretary Industries and commerce, Govt. of Tripura Joint Rubber Production commissioner, Rubber Board, Agartala Arun Keshav, EDI, Agartala Office. 8

IEDP TRIPURA 2004-05 Project Officer Arun Keshav

Policy suggestions accepted...Contd...

The following decision were taken:

The setting up of a Rubber park in Agartala isexpected to help the entrepreneurs interested insetting up rubber procesesing units.

A full time Rubber technologist is expected to beappointed by TFDPC shortly for their Training cumproduction center.

Rubber board was requested to open training-and-technical consultancy division at Agartala. RubberProduction Commissioner mentioned that they arealready in the process of doing this.

The following decision were taken:

The setting up of a Rubber park in Agartala isexpected to help the entrepreneurs interested insetting up rubber procesesing units.

A full time Rubber technologist is expected to beappointed by TFDPC shortly for their Training cumproduction center.

Rubber board was requested to open training-and-technical consultancy division at Agartala. RubberProduction Commissioner mentioned that they arealready in the process of doing this. 9IEDP TRIPURA 2004-05 Project

Officer Arun Keshav

Training Programme…Training Programme…


Officer Arun Keshav

Inaugural

(Lto R) Shri K.Kutty,Dy.ProductionCommissioner, RubberBoard; Sh. ArunKeshav,Project Officer EDII,Dr.V.Bahuguna,IFS,M.D.TFDPC Ltd, Sh. S. Das,Incharge, NSIC ltd.

(Lto R) Shri K.Kutty,Dy.ProductionCommissioner, RubberBoard; Sh. ArunKeshav,Project Officer EDII,Dr.V.Bahuguna,IFS,M.D.TFDPC Ltd, Sh. S. Das,Incharge, NSIC ltd.


Officer Arun Keshav

Training Programme Inputs

Information inputs

Behavioral inputs

Business Opportunity Guidance

Managerial inputs

Marketing skills

Procedural inputs

Field visits:

In plant training

Market survey

Project report preparation

Information inputs

Behavioral inputs

Business Opportunity Guidance

Managerial inputs

Marketing skills

Procedural inputs

Field visits:

In plant training

Market survey

Project report preparation12

IEDP TRIPURA 2004-05 ProjectOfficer Arun Keshav

Technical Training

Under senior Rubber Technologist from

Kolkata, Shri Abdul Haque

and under works manager Tripura

Forest Development and plantation

corporation Ltd. (TFDPC Ltd.)

Under senior Rubber Technologist from

Kolkata, Shri Abdul Haque

and under works manager Tripura

Forest Development and plantation

corporation Ltd. (TFDPC Ltd.)


Officer Arun Keshav

Valedictory

ShriA.Jindal,I.A.S, Directorand Addl. SecretaryIndustries andcommerce,Govt of Tripurawas the chief guest(Second from left),otherguests includeManager,SIDBIAgartala,Branch head CII& NSIC Ltd.

ShriA.Jindal,I.A.S, Directorand Addl. SecretaryIndustries andcommerce,Govt of Tripurawas the chief guest(Second from left),otherguests includeManager,SIDBIAgartala,Branch head CII& NSIC Ltd.


Officer Arun Keshav

Follow up…


Officer Arun Keshav

Follow up

Two follow up meetings organised andas a follow-up activity a visit to threeassociated enterprises arranged fortrainees.Need based information support andfollow-up support provided to interestedtrainees

Two follow up meetings organised andas a follow-up activity a visit to threeassociated enterprises arranged fortrainees.Need based information support andfollow-up support provided to interestedtrainees


Officer Arun Keshav

Present status

12 out of 23 trainees selectedpresently self employed

12 out of 23 trainees selectedpresently self employed


Officer Arun Keshav

Projects In PipelineName of the

TraineeProposed activity Estimated

Investment(Plant andmachinery)

in lacs

Subrata Saha Retread Rubber(cold process)

30

KhokanChaudhary

Micro Cellularsheet

20

Name of theTrainee

Proposed activity EstimatedInvestment(Plant andmachinery)

in lacs

Subrata Saha Retread Rubber(cold process)

30

KhokanChaudhary

Micro Cellularsheet

20


Officer Arun Keshav

Reflections of Trainer Motivator

Long term prospect of the Industry:Has the potential to be the core

industry of the state in due course oftime, if properly nurtured.

Long term strategy for action:Continuous Planned interventions

for developing the industry is very muchrequired.

Long term prospect of the Industry:Has the potential to be the core

industry of the state in due course oftime, if properly nurtured.

Long term strategy for action:Continuous Planned interventions

for developing the industry is very muchrequired.


Officer Arun Keshav

Barriers for the growth of IndustryThe support systemHas many gaps, the same has been identified and suggested tothe Govt. The state Govt. has accepted the same and hasinitiated the action. The expected time period for implementingthese is two years.

Limited Investment CapacityThe industry is very capital intensive from the perspective of asmall entrepreneur, any dry rubber based productmanufacturing activity, would require a minimum investment of10 to 12 lacs in machineries, if compared, under the presentcircumstances, the threats involved in the activity vis-a’-vis anytrading activity is very high.

The support systemHas many gaps, the same has been identified and suggested tothe Govt. The state Govt. has accepted the same and hasinitiated the action. The expected time period for implementingthese is two years.

Limited Investment CapacityThe industry is very capital intensive from the perspective of asmall entrepreneur, any dry rubber based productmanufacturing activity, would require a minimum investment of10 to 12 lacs in machineries, if compared, under the presentcircumstances, the threats involved in the activity vis-a’-vis anytrading activity is very high.


Officer Arun Keshav

AchievementsAchievements


Officer Arun Keshav

Achievements Bringing together the different agencies

involved in development of theindustry/subsector including the potentialentrepreneurs on one platform for chalking outa long-term plan for the industry.

Pointing out to the State Government steps tobe undertaken to upgrade the existing supportsystem for overall development of the industry.

Bringing together the different agenciesinvolved in development of theindustry/subsector including the potentialentrepreneurs on one platform for chalking outa long-term plan for the industry.

Pointing out to the State Government steps tobe undertaken to upgrade the existing supportsystem for overall development of the industry.


Officer Arun Keshav

Achievements

Smooth Supply of Ammoniated FieldLatex ensured by TFDPC Ltd.essentialfor sustainence of Latex based unit.

Only Rubber band manufacturing unit inTripura,Karunamoyee Rubber Unit,onthe verge of closure due tounavailability of ammoniated field latexsustaining profitably after ensuredsmooth supply of rawmaterial.

Smooth Supply of Ammoniated FieldLatex ensured by TFDPC Ltd.essentialfor sustainence of Latex based unit.

Only Rubber band manufacturing unit inTripura,Karunamoyee Rubber Unit,onthe verge of closure due tounavailability of ammoniated field latexsustaining profitably after ensuredsmooth supply of rawmaterial.


THANK YOU

Arun Keshav


iedp presentation 2004-05

Documents