The Hindu Business Line : AP mulls cluster to help fans industry

THE nearly Rs 220-crore turnover fan industry in and around Hyderabad is faced with weak marketing, distribution and is dependent on retail shopkeepers to sell their products, making the overall going a tough proposition economically.

Predominantly small and tiny units, the fan manufacturers cater to the middle and low-income groups, where price is a major factor in marketing. With retail outlets delaying payments for higher margins, the original producer is suffering, says a diagnostic study done by the Small Industries Services Institute (SISI), Hyderabad.

Concentrated in the Balanagar industrial area, the fan units also do not have testing facility for finished products and raw material. The inadequate manufacturing facilities and the delays in sale and marketing are also resulting in poor quality products and use of inferior raw materials, the study found.

The SISI has undertaken a cluster development programme for the fan industry, which is mostly in the unorganised SSI sector, with the nomination of a Cluster Development Executive (CDE), Mr Arvind Patwari, recently. The CDE has been entrusted the responsibility of conducting a detailed study of the fan cluster in Hyderabad.

Following the diagnostic study, the SISI proposes to prepare action plans, which would facilitate necessary interventions — marketing, credit, technology upgradation, infrastructure etc. in proper lines, explained the Director, Mr G.M. Ambhore.

The cluster development programme aims to increase interaction between the fan units and institutions such as SISI, the National Small Industries Corporation (NSIS), District Industrial Corporation (DIC) etc. as well as increase the services from banks.

In view of the marketing potential, strategies revolving around availing quality material at lower prices, identifying durable alternate material for components at competitive prices, establishing common testing facilities etc. would be formulated.

The National Institute of Small Industries Extension & Training (NISIET) would provide training in various aspects of cluster development. It has also identified fans and foundries as clusters in Hyderabad.

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