| Employment
The employment in 12 leading organized sector bearing manufacturing
units is 14,000 Nos. Average employment per unit is about 1170
persons.
The employment in small scale units manufacturing bearings is
4500 persons.
The total employment in Bearing Components manufacturing units
of Jaipur Cluster ranges between 5000 to 7000 persons depending
on the order position.
The employment in spurious bearing sector is about 2500 to 3000
persons.
Turn over
The turnover of organized sector unit in 2005 - 06 is Rs. 25.0
billion.
The turn over of small scale unit in unorganised sector is about
9.00 billion.
The turnover of Jaipur units manufacturing bearing components
is Rs. 3.50 billion.
The turnover of spurious bearing manufacturers is estimated
at Rs. 2.00 billion.
Raw Material
The main raw material used for manufacturing of bearing rings
is either Alloy Steel bars or Tubes of SAE 52100 and case carburizing
Steel . Alloy Steel wire rods are used for the manufacture of
rollers & balls. The cages and retainers are made out of plain
carbon steel of 1008 & 1015 grade. The cluster unit use forged
rings, seamless tubes & Road for turning rings.
Other materials like stainless steels are also used as per the
customers requirements.
Technology :
The machining operation involved in manufacture of antifriction
bearings include forging of the rings, turning, heat-treatment,
face and outer dia -grinding, Bore and track grinding, finish
and super finishing grinding , Demagnetizing, cleaning, inspection
assembly and packaging, etc.
The technology used is conventional type in unorganized sector.
But the organized sector players are using state of the Art
Technology to manufacture the bearings as per the global standards.
The unorganized sector players are also gradually switching
over to technology upgradation.
The cluster units at Jaipur for bearing and Bearing component
manufacturing units are employing conventional technology, but
with the cluster level intervention the units have initiated
technology. upgradation by employing CNC Machine for turning,
grinding, finishing, testing, etc.
Quality & Standards The quality is of paramount
importance for bearing. The organized sector units are following
global standards and use front line technology for inspection
& quality control. The unit in unorganized sector have substantial
level of awareness and learning to start defining the processes
for measurement of efficiency and effectiveness. As an out come
of cluster intervention at Jaipur, 2 cluster units have obtained
TS 16949, 202 certification and 20 units have got certification
for ISO - 9001 - 2000.
MARKET
The Indian bearing Industry is estimated at Rs. 46 billion.
The domestic Industry caters to the 74 % of total demand for
common varieties & sizes. The organized sector unit contribute
around 55 % of the Industry sales. The market has recorded impressive
double digit growth during last 3 years. The growth was 10%,
12% and 10% during 2003 - 04, 2004 - 05 and 2005 - 06 respectively.
The market growth for 2006 - 07 is projected as 14 %.
The unorganized sector contribute about 19% of total Industry
turn over with strong regional presence mainly cater to the
needs of the replacement Market. 26 % of the total demand is
met by imports. The imports include legal as well as illegal
imports. The OEM market demand is directly depending on the
growth of the user industry i.e. Automotive, Railways, the Engineering
sector. The Automobile sector accounts for 45 % of total demand
and the engineering sector accounts for the 28% of the demand.
The SKF Ltd., and NEI Ltd., are the key players in the domestic
market.
The cluster unit manufacturing bearing components are also getting
good order due to accelerated growth in the Automobile & Engineering
Industry, as the SKF, NEI Ltd., TATA Bearings, HMT Bearings,
ABC, FAG, TIMKEN, etc., are outsourcing almost entire requirement
of turned soft rings from the cluster units of Jaipur.
The Automobile industry is the largest user segment for Indian
bearing market. The sector has recorded impressive growth in
the past and poised to record strong growth in the coming years.
The transformation of road transport through Golden quadrilateral
Projects as well as high economic growth would lead to higher
demand for commercial vehicle industry, passenger cars, two
wheelers etc. The 9 % growth in GDP is an indicator of strong
growth in demand of the bearings.
The export of bearing companies is also picked up during last
five years. The domestic players are sensing the outsourcing
opportunities and have initiated the process of producing a
range of bearings for meeting the requirement of the parent
or other global customers. The exports of antifriction bearing
is about Rs. 2.50 billion.
Credit
The bearing Industry is highly capital intensive. The cost of
credit for the organized sector player is available at much
competitive prices in comparison to the players of unorganized
sector, i.e. SSI unit. The SME unit are solely dependent for
credit on financial institutions and commercial banks and hardly
have the level playing field.
The availability of credit at competitive cost . The cluster
units manufacturing bearings & bearing components at Jaipur
is a far cry. However, with the cluster level intervention,
the units are opting credit under CLCSS & CGTIS of Ministry
of SSI.
Infrastructure :
The organized sector units are located mostly at industrially
developed places. The unorganized sector manufacturers are also
mostly located in notified industrial areas.
The bearing component manufacturing units are mostly located
outside notified industrial areas.
The majority of organized sector units either have in-house
R & D and Testing facilities or have collaborations with MNCS
for this purpose, but the unorganized sector do not have such
facilities.
The training facilities or human resource development for the
sector is also expensive and beyond the reach of the SME units
particularly in the area of Tool-room and Tool-design, Lean
/ Six sigma / TPM/ Problem solving techniques, Logistics & Inventory
management, IT applications quality and safety issues, bench
marking of best manufacturing practices etc.
The Speed Breaker :
The high cost of technology, spurious products, import of low
cost bearings, higher raw material prices unfavourable duty
structure and inadequate R & D, and testing common facilities
services are some of the road blocks considered by the Indian
Manufacturers.
The presence of unorganized sector is also being considered
as threat to the organized sector bearing manufacturers and
they hardly network with them for sharing the technology or
other information for mutual business development.
The unorganized sector bearing manufacturing units are unable
to participate in Govt. / PSU purchase programmes in view of
the restrictive practices, like quality considerations imposed
in favour of organized sector players.
The competition Ahead :
The bearings are the critical component of Machinery and Bearing
Manufacturers require high degree of precision and quality.
Therefore, improved technology, research & development, Common
facility Centres are key drivers to face fierce competition
in future.
In order to fight competition the bearing manufacturers are
required to focus more & more on value added products as well
as on introduction of new products.
Cluster approach - As a development strategy .
The Small Industries Service Institute has taken up Bearing
& Bearing Components Manufacturing units Cluster, Jaipur, for
development under the Small Industries Cluster Development Programme
of Govt. of India for inclusive growth and reduction in transaction
costs.
Jaipur has emerged as a manufacturing hub of bearing and bearing
components in the recent past and has about 100 bearing component
manufacturing units, and 1000 to 1500 their sub vendors.
The critical areas of Technology up-gradation, Market, Credit
and Information is being addressed by cluster. Interactive Sessions
are being conducted for confidence building and networking,
capacities building and technology up gradation, Market development
etc. The Global Bearing Conclave is an attempt to stimulate
dialogue in this endeavor.
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