CLUSTER DEVELOPMENTThe Indian Micro Enterprises Development Foundation (IMEDF) is a special purpose vehicle of the DA Group that accelerates the development of micro enterprises at scale. IMEDF is the Nodal Agency (NA) for the SFURTI programme empaneled with the Ministry of Micro, Small and Medium Enterprises.

Developing clusters enables enterprises to come together to collaborate and coordinate with each other for enhancing their income, efficiency, quality and livelihood. Cluster-based entrepreneurs use common facilities and shared services. They gain a platform to interact with a network of institutions for collective marketing, thereby minimising overhead costs.

Cluster based development of MSMEs in India gained

momentum in 1996.

As per the 2017-18 Annual Report of the Ministry of

Micro, Small and Medium Enterprises (MSMEs),

MSMEs contributed 28.77% to India’s GDP in 2015-16.

Till date, around 30 schemes and programmes have

enabled the development of 6000 clusters in India: the

highest across the globe.

Drivers of Growth

A critical factor which defines the growth of a cluster is

the availability of state-of the art technology. Upskilling

combined with technology enable artisans to

contribute to and strengthen the value chain in their

respective clusters.

Provide

?Access to affordable raw materials and improved designs

?Support skill upgradation

?Export, e-commerce and Market intelligence become easily accessible

Revive

?local economy by fostering the development of economies of scale

Benefits of Clusters

The DA Group believes that clusters serve as a multiplication engine for enterprise development and as a catalyst for creating a sustainable and inclusive economy, while also enabling a sustainable ecosystem for these enterprises.

The SFURTI scheme mandates 80% of the scheme’s budget to be allocated to technology, also known as the “hard component”. This resonates with Development Alternatives’ belief in the power of technology to transform people’s lives. The remaining 20% is allocated to the “soft component” - training, market linkage, design and capacity building – and “thematic interventions”.

Cluster Development Approach

Implementing agency (IA) is selected by the NA on the basis of transparent criteria.

A nodal agency is a national level institution with sectoral experience in the major sub sectors of traditional industries.

Technical Agency (TA) frames training requirement of artisans and stakeholders and groups their require-ments as per need of clusters.

The SPV develops and sustains the cluster after project implementation is over.

IMEDF as Nodal Agency

(NA)

Implementing Agency (IA)

Ministry of Micro, Small and Medium Enterprises releases funds for cluster formation

and development

Special Purpose Vehicle (SPV) =

Clusters

Technical Agency (TA)

The SFURTI scheme

The Ministry of Micro Small and Medium Enterprises (MSME), Government of India launched the Scheme of Fund for Regeneration of Traditional Industries (SFURTI) in 2005 to make traditional industries more competitive, market driven and productive by introducing new technologies.

111 SFURTI clusters have been approved in the last three years worth INR 206 crores of which 55% participants are women.

Low Artisan Income

SFURTI THEORY OF CHANGE

HARD INTERVENTIONS

?Technology enable upgradation

?State of art facility

?Working capital

SOFT INTERVENTIONS

?Marketing

?Capital building

?Improved quality

Higher Margins

Doubling of Artisan Income

Lack of access to markets

Lack of new technology

Lack of new facilities

Enhanced Value of ProductsReduced Cost

Consistent Quality

World HeadquartersB-32, Tara Crescent, Qutub Institutional Area New Delhi – 110016, IndiaTel: +91 11 2654 4100, 2654 4200, Fax: +91 11 2685 1158Email: imedf@tara.in, Website: www.devalt.org

A premier social enterprise with a global presence in the fields of green economic development, social empowerment and environmental management. It is credited with numerous innovations in clean technology and delivery systems that help create sustainable livelihoods in the developing world. DA focuses on empowering communities through strengthening people’s institutions and facilitating their access to basic needs; enabling economic opportunities through skill development for green jobs and enterprise creation; and promoting low carbon pathways for development through natural resource management models and clean technology solutions.

IMEDF Initiatives with Clusters

For further information please contact: spatara@devalt.org

Medicinal Plants Cluster,

Barauliya

Bamboo Craft Cluster, Tapi

Gujarat

Sagara Wood Craft Cluster- Shimoga, Karnataka

Tijara Fruits &

Vegetables Cluster,

Tijara, Alwar,

Rajasthan

Agro-business Cluster in Pungro

and Khnosa Blocks, Kiphire,

Nagaland

Zari Zardozi Cluster - Varanasi

Handmade Nautical Artefacts Cluster, Roorkee

Lac & other non timber forest produce - Gumla

district, Jharkhand

Handmade Jewellery Cluster,

Guntur District, AP

Naturally Dyed Handlooms Cluster - Shimoga, Karnataka

Under Approval

Sanctioned

Vishakhapatnam Coffee Cluster - Visakhapatnam

District, AP

Jakkampatti Hereditary Weaving

Cluster, Theni District, Tamil Nadu

Mushroom and Areca Nut Cluster - Jalpaiguri District, West Bengal

Urmul Natural Dyeing Cluster, Bikaner District,

Rajasthan

Mohanpur Millet Magic

Cluster - Mayurbhanj

district, Odisha

Udala Palmaroja Cluster -Mayurbhanj

district, Odisha

Number of Artisans

Number of Clusters

More than 8,000

16

Investment Worth (in INR)

28 Crore