Technology Intervention in the Nilgiris Sweater Cluster

By : E. Bhaskaran

Page No: 152-169

Abstract
The micro manufacturing enterprises in Coonoor, Niligiris manufacturing woolen sweaters have to depend on the common facility centre to meet their technology, value addition and productivity needs by adopting the Cluster Development Approach. They formed the Coonoor Sweater Cluster (CSC) to make use of the common facility centre through technology inter-relationships for cost minimization and profit maximization by converting wool into sweaters. The objective is to study the effects of technology adopted by the Coonoor Sweater Cluster and the Difference in Differences (DID) between the control and experimental variables on productivity after the policy interventions by the Government of India and the Government of Tamil Nadu. The value chain was studied and cluster maps were formed. Data was collected from 125 Coonoor sweater manufacturers and analysed using statistical tools like Descriptive Statistics, CAGR, Correlation, Trend, Regression Analysis, and Structural Equation Modelling. Physical Performance is on an increasing trend in terms of no. of units, employment and production, as are financial performance measures like turnover as per increasing CAGR. To conclude, after the new technology intervention and value chain analysis, the profit earned per firm has increased. The difference in difference (DID) of the control group (who have not undergone Cluster Development Approach) and the treatment group (who have undergone Cluster Development Approach) shows a significant difference in the number of units, employment, production, and turnover, with an increase in productivity. This is due to the adoption of latest technology in cluster development approach by experimental group by managing latest technology in common facility centre available in the Cluster. The interrelationships because of the cluster approach enables members make use of infrastructure, procurement, technology, production, and marketing successfully.

Author :
E. Bhaskaran
Joint Director (Engineering), Department of Industries and Commerce, Government of Tamil Nadu, Guindy, Chennai, Tamil Nadu, India.
 

DOI: https://doi.org/10.32381/PROD.2021.62.02.6