AT JAIPUR

(under Small Industry Cluster Development Programme)

2005

Prepared by :
AJAY SHARMA
CLUSTER DEVELOPMENT EXECUTIVE
Small Industries Service Institute
Government of India
Ministry of SSI
22- Godown Industrial Area, JAIPUR

"PEOPLE WHO WORK

TOGETHER WILL WIN,
WHETHER IT BE AGAINST
COMPLEX FOOTBALL DEFENCE'S
OR
THE PROBLEM OF MODERN SOCIETY "

INDEX
S.No.

Particulars

Page No.

1.

INTRODUCTION

2.

METHODOLOGY

3.

OBJECTIVE OF THE STUDY

4.

BEARING INDUSTRY GLOBAL

SCENARIO

3-4

5.

BEARING INDUSTRY INDIAN

SCENERIO

4-6

6.

HISTORY AND TURNING POINT

7.

STATUS OF BEARING AND BEARING

COMPONENT CLUSTER AT JAIPUR

8-9

7.1

STRUCTURE OF INDUSTRY

9-10

7.2

PRODUCT DESCRIPTION

11-12

7.3

INVESTMENT IN MACHINERY AND

EQUIPMENT

12

7.4

INSTALLED CAPACITY AND

PRODUCTION

12

7.5

POWER

13

7.6

PLANT LAY OUT

13

7.7

PLANT AND MACHINERY USED FOR

PRODUCTION

13-15

7.8

RAW MATERIAL

15-16

7.9

MANUFACTURING PROCESS

17-22

7.10 QUALITY STANDARD

22

7.11 MARKET

23

7.12 MANPOWER EMPLOYMENT

7.13 MANAGEMENT PATTERN
7.14 EXPORT

23-24
24
24
Contd.....2

//

S.No.

//

Particulars

Page No.

8.

OTHER CLUSTER ACTOR

25-33

9.

CURRENT INSTITUTIONAL MATRIX

34-37

10.

PRESENT CLUSTER MAP

38-40

11.

VALUE CHAIN ANALYSIS

41-43

12.

ANALYSIS OF BUSINESS OPERATION

12.1 RAW MATERIAL

44
45

12.2 TECHNOLOGY

46-48

12.3 QUALITY STANDARD

48-49

12.4 PRODUCT MARKETING

49-51

12.5 ENTREPRENEUR AND THEIR

ENTERPRISES

52

12.6 FINANCE AND WORKING CAPITAL

52

12.7 MAN POWER REQUIREMENT

53

12.8 INFRASTRUCTURAL FACILITIE'S

53

12.9 BUSINESS DEVELOPMENT SERVICE

54

13

REALITY TREE

54-58

14

INDUSTRY STRUCTURE ANALYSIS

59-61

15

SWOT ANALYSIS

61-65

16

VISION

17

STRATEGY

18

ACTION PLAN

66
66-67
67

18.1 TECHNOLOGY UPGRADATION

67-69

18.2 DEVELOPING BUSINESS

DEVELOPMENT SERVICES

69-70
Contd.....3

//
S.No.

//

Particulars

18.3 NET WORKING AMONG CLUSTER

ACTOR

Page No.
70

18.4 INFRASTRUCTURAL DEVELOPMENT

70-71

18.5 EXPORT LED GROWTH

71-72

18.6 MARKETING AND DIVERSIFICATION

72

18.7 LIBERALISING GOVT. RULE'S AND

REGULATION.

73

1.

INTRODUCTION :
The phenomenon of a large No. of Small Scale Industrial

Units manufacturing the same (or Similar Product) existing or

Historically developing in close proximity to each other ( In
"Clusters") has been observed in different period and diverse
Industrial Environment
According to UNIDO A Cluster can be defined as a
Sectoral and Geographical concentration of enterprises, In
particular, Small and Medium Enterprises (SME), facing
common opportunities and threats.
It's estimated that 350 Modern SME & 2000 Rural &
Artisan Cluster exist in India. Thus Cluster contribute upto 60%
of India manufacturing export and have a significantly high
share in employment generation. The importance of cluster
approach has realized by Govt. of India and Accordingly several
Institution in India have been taken up Cluster Development
project beside various Govt. Institution.
The Ministry of Small Scale Industries through it's
successful

collaborative

effort

with

UNIDO

and

also

Independently on it's own, has initiated and completed a series

of Cluster Development Initiations with a holistic Approach
Spread all our the country.

// 2 //
2.

METHODOLOGY :
The Diagnostic study of Bearing & Bearing component

Cluster, JAIPUR was carried out in four distinct phase. The Ist
phase was involved with earlier, report, Journals etc. In
connection with Bearing & Bearing components Industries.
In the second phase the information were collected from
the units by sending the performa specially devised for the
purpose. The third phase actual unit visit were carried out to
several units related to Bearing and Bearing components. During
visit a detailed discussion were held with owners, workers and
related back ward & forward linkage. In the last phase meeting
were Arranged with Association and their member, Different
Development Agencies etc. The Diagnostic Study conducted
from Feb. 2005 to May 2005.
3.

OBJECTIVE OF THE STUDY :

The objective of Diagnostic Study to make in depth study

of the present condition of Bearing and Bearing components

Units at JAIPUR and suggest steps of technology upgradation /
Diversification / Cost competitiveness / Quality upgradation of
existing units. So they may be able to produce Bearing and
Bearing components to an International Quality Standard for
Domestic & International market. That will help to promote a
large No. of successful Entrepreneur and generate employment
and earn foreign exchange.

// 3 //

4.

BEARING INDUSTRY GLOBAL SCENERIO :

The world Market of quality Bearing is very vast. The Big

player of bearing sector are present in U.S.A, Russia, Japan,

China

and

eastern

Europe.

Some

of

leading

bearing

manufacturer are : -

NSK Japan

NTN Japan

KOYA Seiko Japan

FAG Germany

SKF Sweden

NRB France

Timken USA

There are few of leading bearing manufacturer present in

India. Most of the big player are having either technical or
financial Collaboration with leading Auto Manufacturer.
International Collaboration gives Access to best technology
in the world.

// 4 //
GLOBAL COLLABORATION
COMPANY

COLLABORATION

FAG Bearing India

FAG, Germany

SKF India

SKF Sweden

NRB

Nadella, France

ABC Bearing Ltd.

NSK Japan

TIMKEN India

TIMKEN USA

Bimetal Bearing Ltd.

Clevite Corporation USA

Gabriel India

Suspension Italy

The Indian Bearing Industry, especially the companies having

technical and financial collaboration with Global player are
expected to garner Higher pie in export market.
5.

BEARING INDUSTRY INDIAN SCENERIO :

The Indian Bearing Industry is estimated at Rs. 30 Billion

Approximately. The Industry

has established a highly

diversified product range of Around 1000 type of Bearing,

having High Volume Demand. As much as 70% of the total
Demand for common varieties and size of bearing is met by the
domestic Industry, and the remaining demand to the tune of
30% is Imported essentially for Industrial Application and
special purpose.
The Indian bearing Industry can be divided in to the
organized sector and un-organized sector. The organized sector
primarily caters to the original equipment Manufacturer (OEM)
Segment, which predominantly comprises Automotive railway

// 5 //
and other Industrial users. The replacement market is dominated
by unorganized Sector.
ORGANISED SECTOR :
The organized Sector comprises about 12 odd big
Manufacturer, who contribute to more than 50% of total turn
over. Most of the big players are having either technical or
financial. Collaboration with leading Auto manufacturer.
International Collaboration give Access to best technology in
the world. Some of the leading companies include SKF India,
NRB Bearing, ABC Bearing, FAG Bearing India, Timken India
amongst other SKF Bearing is the major player in the Indian
market with the largest market share National Engineering
Industry and FAG Bearing India are the two other major player
along with NRB Bearing.
UNORGANISED SECTOR :
The Unorganized Sector Include the Small Scale
manufacturer and Manufacturer of Spurious Bearing. The
unorganized Sector Contribute to almost 15% of Total Industry
turnover. The Unorganized Sector player have a strong regional
presence and mainly caters to the needs of the replacement
market. These are following Different pie Diagram of Indian
Bearing Industry shows the (1) Industry Structure (2) User
Segments (3) Market Dynamics (4) Distribution of Bearing.

//

//

Industry Structure

30%
55%
15%

1 Domestic Organised

2 Domesh Unorganised

3 Imports

User-Segments
Automobile

6%

Gneral Engineering

21%

45%
Heavy Industries
including railways
Electrical equipments
& other

28%

Distribution of Production
6% 7% 3%
54%

30%

Ball Bearing

Taper Roller

Cylinderical Roller

Needle Roller

Spherical Roller

Market Dynamics

OEM
Market
60%
Replacement Market

Replaceme
nt Market
40%

OEM Market

//
6.

//

HISTORY AND TURNING POINT :

Bearing in India started with the setting up of

manufacturing unit in JAIPUR by the Birla Group in 1946 under

the name of "National Bearing Company Ltd."
The Ist Bearing was manufactured in 1950 with a modest
start of 30 thousand Bearing in 19 Sizes.
The Bearing Races (Soft) was Manufactured by the Tiny
Unit in the Small Scale Sector at Jaipur during 1970 on Job
Work basis. with a view to utilize the end piece of the Stainless
steel tube which could not be fed to the Multi operation of
National Engineering Industries Jaipur. There after there is a
continuous growth of this Industry and now it has grown to a
level that Almost All the Leading Manufacturer of the country
are procuring Soft Bearing. Races from JAIPUR. The National
Engineering Industries procure lakhs of Ring every month from
these Bearing Race Manufacturing Unit.
The other leading manufacturer like S.K.F., FAG, TATA
Bearing, ABC are also procuring the Bearing races from Jaipur.
In addition to above , the Small Scale Units manufacturing
Bearing in the state of Rajasthan, Delhi, Gujrat and Punjab also
purchasing Bearing Races and components from Jaipur.
Apart

from

Bearing

Races

there

are

Bearing

manufacturing SSI Units, Ball manufacturing Unit, and cage

manufacturing unit present in Cluster.

// 8 //
7. STATUS

OF

BEARING

AND

BEARING

COMPONENT CLUSTER AT JAIPUR

OUTER & INNER SOFT RACES

MANUFACTURING UNIT

Tiny/Artisan Unit
Large Scale
Bearing
Manufacturing
Unit such as NEI
Ltd.

SSI Ball Bearing

Manufacturing
Unit

Ball
Manufacturing
Unit

Cages
Manufacturing Unit
Rivet
Manufacturing Unit

The broad structure of Bearing & Bearing Component

Cluster at Jaipur has components Namely SSI Bearing
Manufacturing Unit, Soft Outer and Inner Races
manufacturing

units,

tiny

&

Artisan

Units,

Ball

manufacturing Unit, Cage manufacturing unit, Rivet

manufacturing Unit as represented above.

// 9 //
In the Jaipur Cluster, There are Approx 11 No. of SSI
Bearing Manufacturing Unit, about 90 No. of Outer &
Inner Soft Races Manufacturing SSI Units and about 2000
No. of outer /Inner Races. turning Tiny/Artisan units.
Apart from above there is one large scale bearing
manufacturing unit at JAIPUR namely M/s. NEI Ltd.
owned by Birla Group.
The Bearing Manufacturing SSI Units of Cluster are
producing 36 Lacs of Bearing worth of Rs. 8 Crore and
The Bearing Races 50 Lacs Quantity and other Bearing
components having the Approx worth of Rs. 100 Crore are
produced In the Cluster.
7.1 STRUCTURE OF THE INDUSTRY :
The Bearing and Bearing Components Industries are classified
in three category.
BEARING MANUFACTURING UNIT :
There are about 11 No. of Bearing Manufacturing Unit in
Cluster. They are manufacturing Different type of Bearing.

// 10 //
BEARING RACES MANUFACTURING UNIT :
There are about 90 No. of Registered Units engaged in
Manufacturing of Bearing Races.
TINY/ARTISAN UNIT :
There are about 2000 No. of Tiny/Artisan Unit engaged in
manufacturing of outer/Inner Soft Races.
Large Scale
Bearing
Manufacturing
Unit In Cluster
NEI Ltd.

Other Bearing
Manufacturing
Unit out side
ClusterSKF,
TATA, FAG

OUTER/INNER
Races
Manufacturing
Unit

2000 No. of Tiny and Artisan Unit

Providing Races to Different Races
Manufacturing Unit

SSI Bearing
Manufacturing
Unit

// 11 //
7.2 PRODUCT DESCRIPTION :
The Bearing and Bearing components units at Jaipur
Cluster are engaged in manufacturing of outer & Inner Races,
Cages Dust shield, Balls, & Ball Bearing.
The Major Products/Components manufactured in the
cluster by majority of Unit are outer & Inner Soft Bearing Races
and Ball Bearing.
BEARING RACE'S
The SSI Races Manufacturing Units of Jaipur are
Manufacturing outer & Inner Bearing Races in Different sizes.
According to the Demand in the market. The turned Races are
supplied in Soft condition and remaining operation of
Hardening, Tempering Grinding & Honing/polishing are being
done by the Bearing Manufacturer.
The Detail of type and size of Bearing Races are as under:S.No. Type of Bearing Races

Inner Dia Ranger

1.

Ball Bearing Races

10mm to 80mm

2.

Taper Roller Bearing Races

17mm to 100 mm

3.

Cylindrical Roller Bearing Races

20mm to 75 mm

4.

Special type of Bearing Races for 20mm to 75 mm

Transport Vehicles (Thrust Bearing)

5.

Axle Box Bearing Races for Railway 100mm to 200mm

passenger coaches and wagon

//

12

//

BALL BEARING :
The Ball Bearing in the Cluster are manufactured ranging
from 10mm to 80 mm Internal Diameter covering the Bearing
Series of 6000, 6200 & 63000 mainly.
7.3 INVESTMENT IN MACHINERY AND EQUIPMENT:
The Average Investment in plant and machinery in
Different Category of Units are as follows :
S.No.

Type of Unit

Average
Investment

1.

SSI Bearing Manufacturing Unit

30-35 Lacs

2.

Races Manufacturing SSI Unit

10-15 Lacs

3.

Tiny / Artisan Unit

1.25 - 2.50 Lacs

7.4 INSTALLED CAPACITY AND PRODUCTION:

In India, The 60% of Bearing Races of total Bearing
manufacturing are made in Jaipur where as 20% are made in
Gujrat, 10% in Maharashtra and rest of 10% In the other part of
Country.
The Bearing Manufacturing SSI Units of Cluster are
Producing 36 lacks of Bearing worth of Rs. 8 Crore and the
Bearing Races 50 Lacks Quantity and other Bearing Bearing
components having the Approx worth of Rs. 100 Crore are
Produced in the Cluster.

// 13 //
7.5 POWER:
The Power requirement of Bearing Races manufacturing
Small Scale units ranges from 7.5 KW to 30 KW depending
upon the production capacity of Unit. The power requirement of
Ball Bearing manufacturing SSI Units ranging from 25 KW to
45 KW.
7.6 PLANT LAYOUT
Plat Lay Out of Bearing and Bearing component Units are
not systematic. One of the reason is that the most of units in
cluster are developed in phases. They have expanded themselves
by Installing machinery in phases.
Moreover, many tiny / Artisan units are functioning in
Shops and due to Availability of Lack of Space, The placement
of machinery & Handling of material with in the unit is not
proper and systematic
7.7 PLANT AND MACHINERY USED FOR
PRODUCTION :
The main machines presently in use for Bearing Races
Manufacturing are :
-

Bar turning Machine

Centre Lathe

Lathe Addahs

Tools cutter Grinder

Pedestal Grinder

// 14 //
The plant & Machinery being used by these units are old
& out dated in most of unit till the year 1985. The Multi
spindle Machine was used for parting, turning, facing
Track & Radius forming in one go but the Same was
discontinued in the cluster as the rejection rate and
Machinery Cost were too high. Most of the units in Cluster
are using Lathe Addahs and conventional Lathe and some
of Units are having Auto Lathe and CNC Machine for
Races Turning /Machining.
The

Main

machine

being

used

in

Bearing

Manufacturing unit are :

-

Bore Grinding Machine

Track Grinding Machine (Internal Grinding Machine)

Center less Grinder (External Grinding Machine )

Honing Machine

Hydraulic power press

Surface Grinder/Duplex Grinder

Bench Drilling machine

Pinning Press, Rivetting press

Tool post Grinder

Marking Machine

Tumbling Barrels

Sleeve packaging machine

// 15 //
The Machinery being used for Grinding & honing by the
SSI Bearing Manufacturing Units are Imported & Second Hand
Machinery.
7.8 RAW MATERIAL :
The Races & Rolling elements of Bearing are subjected to
stress on a very small contact surface must be of such material
so as to with stand wear and have high elastic Limit & fatigue
Limit . The raw material being used by the Industry for
manufacturing of various Bearing components are as under:
Outer and Inner Races
The raw material used in the Manufacturing of bearing
Races is SAE 52100 high Carbon Chrome bearing steel, which
has composition similar to EN-31 (100 CR 6 As per BIS
specification). The raw material for Bearing Races is in the form
of Rods & Seamless Hollow Tubes. This is a Spherodised
Annealed Steel. Approx 80% of the Seamless Hollow tubes are
purchased by the Industry from M/s. Indian Seamless Metal tube
PUNE, while the rest of the tube used in the cluster is Imported
material
The Steel bar are purchased from M/s. Indian Seamless
Steel & Alloy Pune & M/s. Mahindra Ugine Steel Company
KHAPOLI (Maharastra). some of the units are buying the steel
scrap rod for manufacturing bearing races.

// 16 //
Bearing Races material and their heat treatment are
required to be selected carefully, taking account the mechanical
strength and required life of the Bearing, so that each material
may perform at maximum capability.

Approximate required composition for Bearing races are

Constitute

% Composition

Carbon

0.95 to 1.1

Chromium

1.4 to 1.6

Manganese

0.50 max.

Silicon

0.15 to 0.35

Sulphur

0.025 (Max.)

Phosphorous

0.05

CAGE'S
Cage is used to return balls at proper distance to prevent
them from containing each other and to prevent a temp.
rise and resultant damage due to friction.
The Material for manufacturing cages is CRCA Strips of
C2015 Bearing grade steel having carbon percentage at
0.08% max. and Magnesium ranging from 0.25% to 0.45%
BALL'S
Steel Balls of grade 20, 16 &10 with close tolerance,
smooth surface made by using SAE 52100 High Carbon
Chrome Bearing Steel.

// 17 //

7.9 MANUFACTURING PROCESS

The Manufacturing Process of Bearing Races (Soft turned)
differ in Accordance with the shape of raw material and type of
bearing. These are following three methods which are being
used by units manufacturing bearing races (Soft Turned).
BAR ROUTE :Bar route method is considered to be most economical
method manufacturing of soft turned Bearing Races.
The following steps are involved in this method.
Bar Turning
Drilling, Parting & Trepanning
(Trepanning is the operation in which the outer race & inner
race is parted off from a single piece of Bar).

Inner Diameter Machining & Facing

Outer Diameter Machining & Facing

Radius Formation

Track Formation

Ready for Dispatch for further operation.

// 18

//

For the Inner Diameter upto 25mm , this method is more

economical as compared to the other method. That is why this
method is more popular and it's estimated that 70% of Bearing
Races soft turning upto 25 mm I.D. size and 50% Races of the
total quantity of soft races manufactured by using this
manufacturing technology in this Cluster. Beyond 25mm I.D.
this method is not much cost effective.
Seamless Tube Method:In the Seamless Tube Method the Drilling and trepanning
operation are not required , the remaining operations are as
follows :Parting
I.D. Machining & Width Machining

Outer Dia Machining & Facing

Track and Radius Formation

Ready for dispatch for further operation

This process technology is preferably being used for the

outer Dia of 25mm or higher size. Apart 40% of the total
volume of Soft Races turning is being produced by using
above mentioned method in the cluster.

// 19 //

Forging Method :Bearing Races are manufactured by Hot Forging Method.

The operation of Drilling, parting, and trepanning are not
required while using Forging Method. The Metallic closed Dies
are used in Hot Forging Method.
This method is more suitable and economical for outer Dia
of 30 mm and above size. In the cluster Approx. 10% of Bearing
Races are produced by using Forging Method. The Forged
Bearing Races are machined/finished as Indicated in the earlier
method.

FURTHER OEPRATION FOR BEARING

MANUFACTURING
The Bearing Outer & Inner Races manufactured by using
any one of the method mentioned above are then supplied to
large scale and small scale Bearing manufacturing Unit.
The further sequence of operation for manufacturing of
Bearing are as under

// 20

//

Hardening & Tempering of Outer & Inner Races.

Grinding Followed by Honing of Outer & Inner Races

Assembly of Outer & Inner Races with Balls / Roller & Cage
duly suited and locked by power press.

Cleaning, Checking & Final Inspection

Packing

Ready for dispatch

MANUFACTURING PROCESS OF OTHER

BEARING COMPONENT
Steel Ball :Steel Ball with Close tolerance and desired surface
finish are produced by using SAE-52100 Steel Rod. The
process flow diagram for manufacturing of steel ball is
as under

// 21 //
Cold Heading (on Cold Header Machine)
Flashing (on Ball Flash removing M/c.)
Heat Treatment (Hardening followed by Tempering on Rotary
type furnace)
Tumbling (on tumbler)
Ball Grading (on Ball Grading M/c.)
Rough Lapping (on Lapping M/c.)
Abrasive Lapping ( on Abrasive Lapping M/c.)

Oil Lapping (with the help of H.S. Diesel oil and Chromium
Oxide)
Caustic Soda Washing
Inspection
Grading
Greasing
Packing
Steel Cage's :Steel Cages are manufactured by using Bearing Grade
Steel Sheet. These sheets are stamped with the help of Hydraulic
Presses and various dies to provide the desired form and size of
Steel Cage.
The Process flow diagram for manufacturing of Bearing
Cages is as under :

// 22 //
Blanking

Bending

Drawing

Piercing

Cleaning

Inspection

Ready for dispatch

7.10 QUALITY STANDARD
The quality of Ball Bearing & Bearing Races manufactured in
the SSI sector in India is below the International Standard . As
the product require High degree of precision the SSI
manufacturer are unable to maintain Accuracy with in 2 to 4
microns in accordance with the Standard of International
Market. The existing machinery is able to give max. accuracy
with 5-8 microns geometry tolerances. The old machinery being
used by majority of SSI Bearing Manufacturing unit.

// 23 //
7.11 MARKET
The SSI Bearing Manufacturing units of cluster are mainly
supplying to the replacement market of Bearing.
On the other hand a number of SSI Races Manufacturing
Units are supplying the Soft turned Bearing Races to the
following large scale units.
Name of Large Scale Unit No. of Vendor in Jaipur Cluster
(i)

NBC

30 No.

(ii)

SKF

05 No.

(iii) ABC

02 No.

(iv) FAG

04 No.

(v)

02 No.

TATA

(vi) TIMKEN

01 No.

7.12 MAN POWER EMPLOYMENT :All the Bearing manufacturing units are providing average
employment of 30 person per unit.
Apart from this there are about 90 No. of registered SSI
Units engaged in manufacturing of Soft Bearing Races and
providing the Average employment of 22 person per unit.
There are about 2000 No. of Artisan units working in
Cluster. The average employment in the Artisan Unit is 4 person
per unit.

// 24 //

Considering the all above, The direct employment

provided by this cluster is about 12000 people. Indirect
employment for Transportation , Tools, Containers, Packaging
etc. further helps in providing employment.

7.13 MANAGEMENT PATTERN :In most of the units, the management pattern is either
proprietary or partnership type. The proprietor/partner himself
look after the various activities right from procurement of order,
purchase of raw material, accounting, production etc.

7.14 EXPORT :The Bearing and Bearing Component Units are not
Directly exporting their Product. But two units are Indirectly
exporting Approx. 30 lacks of Bearing Races worth of 9 crore
per Annum from Jaipur Cluster.

// 25 //

8.

OTHER CLUSTER ACTOR :Association having Direct stake on the cluster

Rajasthan Bearing Manufacturer Association
The Rajasthan Bearing Manufacturer Association was

formed four year ago. This Association was formed when Govt.
of India Imposed excise Duty on Bearing Manufacturer at that
time the Bearing Manufacturer united themselves and from
Association to represent their Problem Collectively.
The Association is not very Active. The Association
became Active when entrepreneur faces problems.

VISWAKARMA INDUSTRIAL ASSOCIATION

The Apex Industrial Association representing the various section
of the Industry under SSI Sector is Viswakarma Industrial
Association. The Association represent the SSI Unit of
Viswakarma Industrial Area JAIPUR. The Viswakarma
Industrial Area is Largest Industrial Area of Rajasthan. There
are around 2000 working Industrial Unit in this VKI Area ,
some of Industrial unit is related to Casting, Rolling Mills,
Bearing & Bearing Components, Engg. Chemicals, Transformer
& Electrical Appliances etc.

// 26 //
The Association is Active and very much keen to identify
the various problem of SSI Sector by way of keeping constant
Interaction with Central and State Govt.
A Sub Contracting exchange duly recognized by the D.C.
(SSI), Ministry of Small Scale Industry has been established at
Viswakarma Industrial Association.
CII (CONFEDERATION OF INDIAN INDUSTRY)
Jaipur Chapter
It's a powerful confederation in the National Level. The CII
have JAIPUR Office. The main Activities of the confederation
are Lobbying with Govt. (State and Central) for the Welfare of
the Industry. It also conducts meeting and Seminars on various
Scenario in the context of Industrial growth.
RAJASTHAN

CHAMBER

OF

COMMERCE

AND

INDUSTRY
RCCI is incorporated under Jaipur Companies Act 1942
and Later ratified under companies Act. It has about 600
corporate member, over 40 Industry Association Chamber and
about 150 exporter members, Apart from Several Individual
representing wide spectrum of expertise encompassing finance,
technology, Management , Information technology, Social
Science Cultural and Art Sector of National & International
Status.

// 27 //
These are following services of RCCI
Conduct and Manage surveys, Analysis and Research on
Trade Business.
Publication of Business Directories.
Rural Cluster Development
Dispute

Settlement,

Arbitration,

Consultancy

and

Advisory Service.
Counseling for new Business Opportunities, expansion/
diversification.
Industrial finance Management, Economic Analysis on
Investment, Joint Ventures, Custom Regulations.
Document

preparation

for

Export/Import,

Export

Procedures, Registration etc.

INSTITUTION HAVING DIRECT STAKE ON THE
CLUSTER
SMALL INDSUTRIE'S SERVICE INSTITUTE JAIPUR
Small Industries Service Institute (SISI) Jaipur was set up
in Jaipur on 14th Jan. 1958. The Institute is engaged in
Promotion and Development of Small Scale Industries in the
State of Rajasthan. This is one of 30 such Institute set up by
Ministry of Small Scale Industries Govt. of India, All over the
country. The Service provided by the Institute Include technical

// 28 //

guidance, economic Investigation and Managerial Service and

basic Input in the form of technical guidance required to set up
new units and to run existing units by improving quality and
productivity. Technical Expertise is Available in various
disciplines like Mechanical, Metallurgical, Chemical/Rubber,
plastic/food, Glasses Ceramics, Electrical/Electronics, and
Leather/footwear to guide the entrepreneur.
The Institute also Coordinate and implement the policies
and programme of the Central Govt. The important function and
Consultancy Service provided by the Institute to Small Scale
Industries in the State are :

Consultancy to Prospective entrepreneur in Identification/

Selection of Product selection of Appropriate technology
manufacture process, selection of suitable plant & M/c.
etc.

Consultancy to existing unit in quality control and

standardization, New Technology and Assistance in
Marketing the products.

Preparation of State Industrial profile.

Preparation of District Industrial potential survey

Entrepreneur Ship Development Programme.

Management Development Programme

Motivational Campaign

// 29 //

Cluster Study

Computer Training Programme

Awareness Programme on Energy Conservation and

Pollution Control.

Awareness Programme on Quality Control and ISO

9000/14000 .

Ancillary Development

Marketing & Export Promotion.

Coordination with Directorate of Industries, DIC, Banks

and Department related to Industrial Development in State.

Common facility service to small scale unit in Machine

Shop, CMC wire cut machine etc.

DISTRICT INDUSTRIES CENTRE :It's State Govt. Department for the promotion of small
scale industries. The department is headed by Commissioner of
Industries and District office headed by General Manager . The
main function of District Industries Centre are : Issue of provisional and permanent SSI Registration
Certificate.
Conducting Motivation Campaign, PMRY Training,
Entrepreneurship Development Programme.
Implementation

of

unemployed youth.

PMRY

scheme

for

education

// 30 //

SMALL

INDUSTRIES

DEVELOPMENT

BANK

OF

INDIA :The SIDBI was set up by the Govt. of India under a special
act of the parliament in April 1990 as a wholly- owned
subsidiary of the IDBI, SIDBI has taken over outstanding part
folio of IDBI relating to the small scale sector. As an Apex
financial institution for promotion financing and development of
industry in small scale sector, SIDBI meets the various
developmental needs of Indian SSI Sector by it's wide ranging
promotional and developmental activities. Promotional and
Developmental Initiative of Bank aim at Improving the inherent
strength of small scale sector on one hand as also economic
development of poor through promotion of Micro Enterprises.
Some of the scheme of SIDBI are Credit linked capital
subsidy scheme, for development of industrial infrastructure for
SSI Sector (IID), Equipment Finance Scheme (EFS), Fast Track
Finance Scheme (FIFS), ISO 9000 Scheme (ISO 9000) Project
Finance Scheme (PFS), Technology Upgradation Fund Scheme
for Textile Industries (TUFS) and Vendor Development
Scheme.

// 31 //
NSIC (National Small Industries Corporation) :The NSIC was established in 1955 by the Govt. of India with a
view to promote, Aid and foster the growth of small industries
in the country NSIC provide diversified support through it wide
spectrum of Programme of SME to cater to their different need
NSIC is Implementing the following scheme namely :

MACHINERY AND EQUIPMENT

Hire Purchase Scheme
Equipment Leasing

WORKING CAPITAL FINANCE

RAW MATERIAL ASSISTANCE SCHEME

MARKETING
Registration for Govt. Store purchase Programme
Tender Marketing Support
Marketing Consortium Formation

EXPORT
Conducting of exhibitions/trade four and buyer seller
meet.
Pre shipment advance
Assistance for project export
INFORMEDIARY SERVICE

// 32 //
BIS (Bureau of Indian Standard ) :In 1947 an organization by name Indian standard
Institution was set up which was later made a statutory body and
christened as Bureau of Indian standard in 1986. The important
activities of BIS include formulation of standard, Product and
quality system Certification, Training Information Service etc.
RAJASTHAN STATE INDUSTRIAL DEVELOPMENT
AND INVESTMENT CORPORATION LTD. (RIICO)
Rajasthan state Industrial Development & Investment
Corporation Limited (RIICO) and Apex Industrial organization
of State Govt. of Raj. Since of Inception in 1969 has emerged as
a Multi faceted dynamic institution.
The main Activities of RIICO are as follows :

INFRASTRUCTRURE DEVELOPMENT :-

Provide Total Infrastructure support to Industrial project in

Rajasthan by way of developing Industrial Area and
Township.

FINANCIAL ASSISTANCE :

Term Lending Institution in the State .

Provide Term Loan, Working Capital Loan under various

scheme.

// 33 //
PROMOTIONAL AND CONSULTANCY ACTIVITIE'S :

Technical Consultancy for project Identification .

Support to facilitate project Implementation and operation.

Help in site selection and acquisition of land.

RAJASTHAN FINANCIAL CORPORATION :The Rajasthan Financial Corporation (RFC) is providing

term Loan for establishment, expansion and renewal of
Industries, and Mining Activities, Transport and Hotel in the
State through simplified and male liberal procedures. The
Corporation sanctioned loans and disbursed.
RFC is also playing an important role as an Agent on
behalf of the State Govt. for providing investment subsidies and
other concessional facilities to Industries in the state.

/ / 34 / /

9.

CURRENT INSTITUTIONAL MATRIX

RBMA VKI

RCCI

CII

SISI

DIC

SIDBI NSIC

BIS

RIICO RFC

RBMA

VKI

RCCI

CII

SISI

DIC

SIDBI

NSIC

BIS

RIICO

RFC

// 35 //

The Current Institutional Matrix depicts the relationship

among the various stake holder in Bearing and Bearing
Component cluster. The Nature of relationship between these
cluster actor is not always very clear and direct, some of them
have very remote relationship and it's limited to the extent of
organizing some programme providing certain marginal
services, and sometimes conducting informal meeting or some
seminar.
Here in the Current Institutional Matrix, we have explored
the Interrelationship among the following Industry Association,
chamber of commerce and Industry, Institution and bank and
financial institution.
Rajasthan Bearing Manufacturer Association
Viswakarma Industrial Association.
Rajasthan Chamber of Commerce & Industry
Confederation of Indian Industry
Small Industries Service Institute
District Industry Centre
Small Industries Development Bank of India
National Small Industries Corporation.
Bureau of Indian Standard
Rajasthan Industrial & Investment Corporation
Rajasthan Financial Corporation.

// 36 //
Based on the rate of these various support Institutions,
Associations

and

Strength

of

their

Inter-Linkage

and

Cooperation, they are given a score in a five point scale. Score

"1" Indicate that these is very little cooperation among this
cluster Actor where as score "5" Indicate that there is strong
Inter-Linkage and responsiveness among the cluster actor. This
cooperation may be expressed in term of joint planning, solving
each other problem, taking up pertinent Issues to various Govt.
Deptt., organizing Seminar and conferences, Implementing
Programme jointly. The Current Institutional Matrix for the
Bearing and Bearing Component cluster JAIPUR delineating the
score is shown in the above table.
There are few Association and Institution which are Active
and providing the role of facilitator in solving problem and
taking up Issue to the various Govt. Department.
For example Rajasthan Bearing Manufacturer Association
has strong linkage with Viswakarma Industrial Association. The
relationship between RCCI and VKI Association can be
considered as moderate.
So far Industry Institution Linkage is concerned it was
found that SISI Jaipur has strong linkage with VKI Association
and moderate Linkage with Raj. Chamber of Commerce &
Industry. The relationship between DIC and Association/

// 37 //

Chamber of Commerce was found to be moderate. It was

observed that NSIC has relatively strong functional relationship
with SISI. The outer Inter Institutional Linkage are considered
to be moderate. The Linkage of Bank and other financial
institution with the Industry representative are considered to be
moderate or limited. It's therefore, Imperative that possibilities
are explored to Improve Inter-Institutional Linkage and net
working among Institutions and Industry representatives.
Therefore, effort can be initiated on Improving net working
among industry, institution, associations and other stake holders.
One of the main draw back of Current Institutional Matrix is
that it does not reflect the "Nature of relationship" between
stake holders and it's associated member. It become clear from
the diagnostic study that, not only Inter-Linkage among stake
holding Institution, Association needs to be strengthened but
also the relationship between Individual Enterprises and
Association/Chamber of Commerce needs to be Improved. A
"Win-Win" situation has to be created where all the cluster
actors and stake holders work in union .

// 38 //

10. Present Cluster Map

DC
(SSI)

Bank's
FI

Central
Excise
&
Custom

Sales
Tax
Dept.

Testing
Lab

Techno
-crates

Transp
ort

Chartered
Accountant

Dept.
of
Labo
ur

Director
ate of
Industry

Marketing
Consultant

Raw Material

Ball, Cages, Rivet

Supplier

Manufacturing Unit

Pollution

Control
Board

Export
Consultant

Large
Industries

Tiny/Artisan Races

Machinery &
Equipment
Supplier

Manufacturing Unit
Marketing
Outer/Inner Soft Races

Cutting Tool

Agents

Manufacturing Unit

Supplier
SSI Bearing Manufacturing
Unit

Supplier of

Traders &

Large Scale Bearing

Consumables

Dealers

Manufacturing Unit NEI

DIC

NSIC

BIS

SISI

KVIC

RIICO

RFC

SIDBI

Engg.
College

RSIC

NTH &
FTS

// 39 //

The Cluster Map of Bearing and Bearing Component of

Jaipur Indicate Various Linkage and Actor that exist in this
cluster (The bold line Indicate the prevalence of Linkages where
as dotted line Indicate the Linkage need to be Improved) .

The Department namely Central Excise & Custom,

Pollution Control Board, Deptt. of Labour are not playing any
significant role at this moment. But Development Commissioner
(SSI) Govt. of India, Directorate of Industries Govt. of Raj.,
Sale Tax Dept., the policy maker have taken role in this cluster.

The Commercial Service provides like export consultant,

Technocrate, Marketing Consultants, Testing Laboratory etc. are
not Active for Development of this cluster effort should be made
in strengthening these Business Development Service.

The Nucleus of Cluster Map. There are three type of units

engaged in Bearing and Bearing Components manufacturing
unit .
1.

Bearing Manufacturing Unit.

2.

Bearing Races Manufacturing Unit

3.

Ball, Cage, Rivet manufacturing unit.

// 40 //

Among the constituent of backward linkage there are raw

material supplier, supplier of cutting tool & consumable and
other inputs. There are three manufacturer of raw material
supplier of Steel Rod/ tube
1.

Indian Seamless Metal tube, Pune

2.

Indian Seamless Steel & Alloy , Pune

3.

Mahindra Ugine Steel Company, Khapoli.

The other raw material supplier of cutting tool &

consumable are locally available dealer of different company.

Among the forward linkage member are large bearing

manufacturing unit (NBC, SKF, ABC, TATA, FAG etc.)
Marketing Agent, Trader & Dealer of Bearing.

The organization which are providing support service are

District Industry Centre (DIC), Small Industries Service
Institute, RIICO , RFC, KVIC . But the services of NSIC,
SIDBI, Engg. College, RSIC, BIS are required.

The rate of the Institution and there Linkage were

described in the Current Institution Matrix.

// 41 //

11. VALUE CHAIN ANALYSIS

Value Chain Analysis of Size 1838001 Bearing
Raw Material (In the Form of Either
Rod & Tube ) Tube Rs. 50 per kg.

Bar Route

Seamless Tube

Forging

Method

Method

Method

Soft Turned Races Rs. 14.50 per

piece
Cost of Heat treatment Rs.1.20
Heat Treatment of Outer & Inner
Races Rs. 15.70 per pieces
Cost of Machinery Operation Rs. 8.00
Machining Operation (Grinding &
Honing) Rs. 23.70 per piece
Cost of Assembly Rs. 12.30
Assembly of outer race & Inner Race
with Balls Cage Rs. 36 per peice
Market Price
Market Price
of one Piece
of Bearing
Rs.42/-

Cost of Cleaning & Inspection Rs1.50

Cleaning & Final Inspection Rs.
37.50 per piece
Cost of stamping & Packing Rs. 1.00

Stamping & Packing Rs. 38.50 per

piece

// 42 //

The above figure depicts the value Chain Analysis of

1838001 size Bearing used in engine crank of Two Wheeler
Scooter. It described the degree of Value Addition in each stage
of processing. At mentioned earlier the main Activities Involved
here are
1.

Soft Turned Races Manufacturing.

2.

Heat Treatment

3.

Machining

4.

Assembly

5.

Cleaning & Inspection

6.

Stamping and packing

There are three method of manufacturing soft turned races

1.

Bar Route

2.

Seamless tube method

3.

Forging Method

The Seamless tube method is more popular than other two.

The Total wt. of outer & Inner Races of Bearing

(1838001 size) 0.245 Kg.

The price of Tube is Rs. 50 per kg.

So the Raw Material Cost of Inner & Outer Race is Rs.

12.25

The conversion charges of tube to outer and inner races is

Rs. 2.25 by seamless tube method.

// 43 //

The total cost of turned finish races Rs. 14.50

After that Heat Treatment of Bearing Races is performed.

The costing of Heat treatment of outer & inner races's
Approx. Rs. 1.20

So rate of outer & inner race after heat treatment is Rs.

15.70

After Heat Treatment Machining of outer and Inner Races

is performed by Grinding and Honing operation. The
Machinery Cost of Outer & Inner races is around Rs. 8.00

Rate of Outer & Inner Races after machining is Rs. 23.70

After Machining the assembly of bearing is done by

Assembly of outer, inner races with Ball, Cage. The total
cost of Bought out component and cost of Assembly is
around Rs. 12.30.

So cost of Bearing after assembly Rs. 36.00

The rate of cleaning and final inspection is Around Rs.

1.50

So cost of Bearing After cleaning & final inspection Rs.

37.50

The packing charges are normally Rs. 1.00 per bearing.

So Cost of Bearing Rs. 38.50

The profit percentage of this Industry various both 10 to 15%.

It's also reported that there has been cut throat competition
in market due to lower cost of Chinese Bearing.
// 44 //

12. ANALYSIS OF BUSINESS OPERATION (Problem

Identified)
The following section present on Analysis of Business
operation for the Bearing and Bearing Component Cluster. The
following factors have been taken into consideration in the
Analysis.

Raw Material

Technology (Machinery & Production)

Quality Standard

Product & Marketing

Entrepreneur & their Enterprises.

Finance & working capital.

Man Power Requirement

Infrastructural Facilities.

Business Development Service.

//

45 //

12.1 RAW MATERIAL

The raw material SAE 52100 Spherodised bearing steel
only available from few Indian Supplier.
a.

Indian Seamless Metal Tube, PUNE

b.

Indian Seamless Steel & Alloy, PUNE

c.

Mahindra Ugine Steel Company Khapoli.

The manufacturer and supplier of raw material dictate

price. The Bearing and Bearing Component manufacturer have

very limited bargaining power due to availability of few Indian
Manufacturer .
The Units doing Job work are getting raw material from
the bearing manufacturing unit. However for export of
Bearing

Races,

Bearing Steel

SAE

52100Vaccum

Degassed is required which is not being manufactured in

India. The Lack of Availability of the proper raw material
some of bearing races manufacturer are not able to enter in
export.
The following testing facilities are not available in cluster.
a.

Chemical Composition of Steel.

b.

Non Destructive Testing of Material.

c.

Metallography examination of steel.

The testing of Raw Material may help the unit to use right

quality of raw material.

// 46 //
12.2 TECHNOLOGY (MACHINERY AND
PRODUCTION)

The Machinery and equipment used by majority of SSI

units for manufacturing of Bearing Races are of sub
standard and obsolete. Even the SSI Bearing manufacturing
units are using the second Hand Imported Grinding &
Honing Machine which are having Lesser Tolerance
Accuracy so the bearing manufactured by these units are not
preferred by International Industrial Buyer.

The Product require high degree of precision the

manufacturer are unable to maintain Accuracy with in 2
microns. In accordance with the standard of International
Market. The existing plant & machinery can give accuracy
with 4 microns.

Many SSI Units are not having Specific Cutting Tool of

proper grade required for turning.

The profile cutting operation of Bearing Races is not

properly done due to Non Availability of optical profile
grinder.

Therefore lot of technological intervention need to be

done in the area of Machinery and Production in order to
make final product as per International Standard.

// 47 //
The

detail

of

observation

need

technological

intervention as found in the diagnostic study are given

below :S.No.

Observation

(1).

Use of Kerosene for Splash Cleaning for Assembled

Bearing and Swab Cleaning of Individual Parts.

(2).

Inspection of Contamination level of the Bearing not

inspected.

(3).

Dust free Room/Assembly shop of Bearing not

maintained.

(4)

Erroneous measurement of parallelism, concentricity,

flatness, taper, straightness, radial and Axial clearance.

(5)

Non Uniform Temp. in Shaker Hearth Furnace

(6)

Mar Quenching Oil is being used for Quenching, but

Mar Quenching Salt is not the practice.

(7)

Blackening Salt is full of Contamination .

(8)

Sampling System is Erroneous.

(9)

Roundness Testing is used for setting parameter of

M/c.

(10)

Micro Structure Like Type of Martensite, Retained

Austenite, Benetic Structure , is not being inspected.

(11)

Sub-Zero Treatment is not being done in the cluster

(12)

Micro Hardness measurement is not practice .

(13)

Speed, Feed and Depth of cut for Turning and grinding

are not optimum .
// 48 //

(14)

Precision Measuring Instrument are all shop made.

(15)

Fatigue Testing of Bearing not being carried out.

(16)

No phosphating of Inner and outer ring .

(17)

Go-No-Go gauges practice is not existed.

(18)

Forging Dies are made of H 11 & H13 Hot Die Steel

and Hot H21 & H 23 material.

12.3 QUALITY STANDARD :

The Quality of Bearing Races is concerned SSI Units

have to follow the relevant specification, drawing and other
instruction provided by the purchaser.
The system of 100% inspection is being followed
without any process wastage. However some of the Bearing
manufacturer permit 1% process wastage. In the event of
rejection the unit has to make payment for loss of the raw
material the Bearing Manufacturer.

The main defects of Ball Bearing Races are Track Centre

out (for which Unit is 100 Micron) eccentricity in outer Dia

and Track Dia or Base and Track Dia. The Radius form on
Outer Dia and base of race is not proper which Account for
major rejection.

// 49

//

The gauge calibration facility are not available as the

gauge are required to be calibrated periodically in order to
ensure the quality of product.

These are following Testing facilities are not available in

cluster.
(a).

Raw Material Testing facility.

(b).

Races Testing facility.

(c).

Ball Testing facility.

(d).

Cage (Retainer) Testing facility.

(e).

Bearing Testing Facility.

The lack of facility for production tool manufacturing and

resharpening is also problems to these units. In view of the
above the product of these unit lack consistency in quality.

12.4 PRODUCT MARKETING :

The most of SSI/Artisan Unit of Cluster do not have the

well organized marketing channel and Demand forcasting
system and are facing marketing problem due to lack of
Availability of sufficient fund and other resources required
for Advertisement & Publicity, Credit required by the
buyers, Branding, Market Assessment etc.
// 50 //

Most of Artisan Units are having defective Product pricing

system. The units are cutting prices due to cut throat
competition.

The Bearing Manufacturing SSI Units are only supplying

to replacement market. There is very vast scope to supply
OEM & Other sector if they produce standard quality of
Bearing.

The Problem of duplicating and Reconditioning of old

Bearing are Another Constraint in the Industry.

SSI Bearing Manufacturing Units are also facing challenge

from Indian Large Scale Bearing Manufacturer like SKF,
NEI, TATA Bearing etc. as large scale unit have made Huge
Investment for Product Technologies, Collaboration from
World Leader of Bearing Industry.
Large Scale units have employed the professionally
qualified work force and producing at Higher Volume as

compared to SSI Units, and hence taken a lead in all the

functional Area of Manufacturing, R & D, Marketing etc.
More over these units are using latest and Innovative
technique to have their higher productivity, quality and
profitability. The SSI Units are far away and yet to adopt
these technique tool for their betterment.

// 51 //
30% of total demand for bearing industry is met by
imports. While a part of the imports come through official
channels, there is also a huge volume of illegal imports.
Legal Imports generally represent the specialized bearings
not manufactured in India. There are a large variants of
imported bearings, each holding a small market share in
India. Though, the quality of bearings manufactured by
large players in India is comparable to world standards,
domestic manufacture is not viable due to the small size of
the market segment. It becomes uneconomical to
manufacture such type of bearings as it includes huge
capital expenditure.
Illegal imports generally represent the entry of spurious
imports of bearings. In the past, the Indian bearings
industry was highly protected on account of very high
import duties ranging from 150% to 240% ad valorem. As

a result, illegal imports via smuggling and under invoicing

of imports was the order of the day, accounting for a high
45-50% of total imports. While duty rates have come
down over the last few years, a few countries like China,
Russia, Eastern Europe dump their excess production at a
very low rate. This leads to a huge price differential
between domestic and imported bearings (almost 40-50%),
encouraging imports.

// 52 //

12.5 ENTREPRENEUR AND THEIR ENTERPRISES :

Most of the unit, the enterprise structure is proprietary or

partnership type. The proprietor/ partner himself look after
the Management Aspect and Keep over all control of the
functioning of the unit and in most of the cases they do not
posses the required technical/Managerial back ground.

Technological Awareness of Entrepreneur are not upto the

level. It need to be improved so they can successfully
compete the era of Liberalization and globalization.

12.6 FINANCE AND WORKING CAPITAL :

Finance is the most critical problem of the Industry in term

of shortage of finance, delayed payments, difficulties in
getting bank finance and additional requirement of credit.

Units require to maintain large inventory and it's the

experience of manufacturer that the working capital need
are not fully realized by the bank & financial institution and
it directly affect their market.

// 53 //
12.7 MAN POWER REQUIREMENT :

The SSI Units faces common problem regarding

availability of skilled Man Power, A worker After working
for a period of few year in this Industry Leave the Job to
start his own turning unit or to get higher wages from
Another Unit.

There is no regular Training facilities Available where the

manufacturer and worker undergo need based training.

The SSI Units also faces problem about less availability of

Trained Man Power such as Turner, Tool Maker etc.

12.8 INFRASTRUCTURAL FACILITIES :The Tiny/Artisan Units are scattered in Different Area.
They are functioning under Rented Shop and due to Availability

of Lack of space, The placement of machinery & Handling of

material with in the unit is not proper.
The Bearing and Bearing Components units are located in
V.K.I Industrial Area, Jhotwara Industrial Area, Bais Godown
Industrial Area, Sudershanpura, Industrial Area, etc. In these
Industrial Estate land is provided and Arrangement were made
for provision of electricity and water. However alike other
industrial estate there are problem of power cuts and road
condition are not good. Due to frequent power cuts production is
hampered.
// 54 //
12.9 BUSINESS DEVELOPMENT SERVICE'S :

The Business Development Services have not at all existed

in this cluster. There is dearth of quality BDS in the Area of
technology, Marketing, Export, Health & Safety etc.

Networking among R & D Centre, Technical Training

Centre, Testing Centre are not present in cluster.

13. REALITY TREE :The Reality Tree Analysis while diagnosing the observed
problems tries to identify the root cause of the problem.
Many times the observed problem is the manifestation of
several underneath problem/causes. Thus the reality tree
analysis tries to explore the root cause of the Problem which

should be Addressed first for the betterment of the cluster. The

Reality tree Analysis is presented in following section.
RAW MATERIAL :No Raw

Higher Price of

Material Bank

Raw Material

Little
Bargaining
Power

Required
Imported quality
of raw material

// 55 //

TECHNOLOGY (MACHINERY AND PRODUCTION) :Non Availability

Lower

Technological

Latest

of Technical

Productivity &

Obsolescene

Technology

Expert/Engg.

Quality

not present

Lack of Awareness

Machines are

Non Existence of

Old and
Lack of Technology

R&D Institution

Second Hand

BDS

ENTREPRENEUR AND THEIR ENTERPRISES :High Cost of

Low Return

Inability to

Poor Quality &

Capital

on

face

Productivity

Investment

competition

Losing in

Competition in

Competition from

Marketing

Domestic Market

China and Others.

Front

Little Net

No Joint

Lack of

Low Level of

Work

Marketing

Knowledge

Education

// 56 //
INFRASTRUCTURE:Units are
scattered in

Infra Structure

No Govt.

facilities are not good

Intervention

different area

Inability to project the

Less Unison Among

problem rightly

Cluster Actor

No Net Work

BUSINESS DEVELOPMENT SERVICE'S :Less pro

Activeness on
the part of

BDS Not

Industry Demand was

Developed

not properly projected

Less Unison Among

No R & D Facility

Entrepreneur
Association

// 57 //
PRODUCT AND MARKETING
Product
Technological

Latest Machine not

Technology BDS

Obsolesecene

Installed

Not Available

Lack of Knowlege

MARKETING
Globalisation

Cost Based
Competition from

& WTO

China & Others

Import are

Technological

Low

Increasing

Obsolescence

Productivity &
Quality

Shrinkage

Lack of

Domestic Market

Knowledge

Not Getting
Right Price
for the
product

No Marketing
BDS

Lack of

No Joint

Network

Marketing or
Brand Building

// 58 //
MAN POWER :Non Existence
of Engg.

No Man

Not readiness

Non

Power

to Pay High

Existence of

Salary

Technology

Planning

BDS

Skilled Worker
all not available

FINANCE AND WORKING CAPITAL :-

Competition

High Cost

Low Return on

in Market

of Capital

Investment

// 59 //
14. INDUSTRY STRUCTURE ANALYSIS :Entry Barrier

HIGH
Bargaining Power of the Supplier

LOW

Rivalry

Moderate
Barganing Power of the Customer

HIGH

The above figure depict the Industry structure Analysis of

Bearing & Bearing Component Cluster of Jaipur. This Industry

Structure

Analysis

Determine

firm

level

productivity,

Competition, SME Viability, and Prospect of growth.

The Industrial Structure Analysis is presented in the pattern of

Entry Barrier
Rivalry
Bargaining Power of the Supplier
Bargaining Power of the Customer

The Entry Barrier for this Cluster Considered to be high for

establishing Bearing Manufacturing unit or Bearing Component
Unit are require Investment of 25-30 Lacks (Approx). However

// 60 //
the Total Investment depend on the No. of Machine Installed
and Different Type of Bearing Production. But In case of
Artisan Unit the entry Barrier is Low and require Investment of
1-2 Lacks (Approx.).
If manufacturer Adopt Latest technology then that
technology certainly provide impetus for growth. More over
enough emphasis should be given to Brand Building.
The Rivalry amongst firm is moderate there is not
significant rivalry in the Domestic Market. But most of
manufacturer have fixed supplier or market.

The growth potential of Bearing Industry is tremendous

after the globalisation if the technology is upgraded. The Rivalry
among firm can be reduced by encouraging Non Price
Competition, Forming Marketing Consortia.
The bargaining power of supplier is concerned it was
found to be low for supplier of machine and other consumable
while supplier of raw material enjoy high bargaining power.
Several machinery and other consumable supplier exist in
the cluster and entrepreneur enjoy privilege of choosing
machine and other consumable from any are of them.
On the other hand the raw material is coming from three
no. of supplier. The manufacturer and supplier of raw material
dictate price and the Entrepreneur have limited bargaining
power in this respect. One of the way of Handling this situation
// 61 //
is forming enterprise consortium to ensure Joint procurement of
raw material to get quantity discount if available so far
Bargaining power of customer is concerned it was found to be
high. The Bargaining power of the customer can be reduced by
forming consortium and Brand Building.

15. SWOT ANALYSIS :The SWOT Analysis present the strength, weakness,
opportunity and threat of the cluster. It's important to mention

here that the strength and weaknesses are internal to the cluster
and opportunities and threat are external to the cluster.

STRENGTH
MARKET : Ancillary Arrangement with Large Industries.
Large Domestic Market
Large OEM Market
INPUT AVAILIBILITY : Raw Material is available in sufficient quantity.
Availability of other Input & Consumables.

// 62 //
TECHNOLOGY : Fast Adoptable to change (same technology being used in
all the units)
INNOVATION CAPABILITY: Ability to develop duplicate & customised machine.
Flexible operating practices.

SKILL : Most of Job is Learnt by Worker while doing it

Worker are skilled
BUSINESS ENVIORNMENT: Stable Business Environment
WEAKNESS
MARKET : Domestic market competition increasing
Very Low Volume of Direct Export
Weak Marketing Linkages
Middlemen enjoy substantial part in the value chain.
INPUT AVAILIBILITY : Raw Material Bank is not present.
No Inspection of Raw Material

// 63 //
TECHNOLOGY : Low level of technology used by most of Artisan/Tiny
Units.
Quality of Bearing Manufactured in the SSI Sector does
not meet the International Quality Standard.

INNOVATION CAPABILITY : Hardly any change in Design, Technology, Process of

Manufacturing and quality control.
SKILL : No Skill upgradation Training facilities .
Non existence of Highly skilled Man Power.
BUSINESS ENVIRONMENT: Competition is going to Increase
Working Condition not good.
OPPORTUNITY
MARKET : Growing Domestic & International Market
Opportunity for Diversification of other type of bearing.
Excise exemption to SSI Unit
Quality and Productivity is the rule of game.

// 64 //
INPUT AVAILIBILITY : Competition is going to make availability of inputs
cheaper & sufficient.
Quality and inspection require to be enforced.

TECHNOLOGY : Large Scope for technology upgradation.

Prospects of establishing common facility centre and R &
D Institution.
INNOVATION CAPABILITY : Exposure visit, participation in International & National
Trade Fair may make entrepreneur more Innovative &
problem solving.
Demonstration effect
SKILL : Skill Upgradation Training Programme will improve the
skill of worker
BUSINESS ENVIRONMENT : Changing Business Environment can provide opportunity
for Enterprising firm.

// 65 //
THREAT
MARKET: Stiff Competition from China made Bearing.

 Competition is going to increase Domestic Market.

Import is going to increase.
No Entry Barrier in the cluster.
INPUT AVAILABILITY : Increase in Raw Material Prices.
TECHNOLOGY: Technology

can

impose

major

threat

unless

it's

changed/modernized.
INNOVATION CAPABILITY : Innovation is required in every stage of Business
Operation.
SKILL : Skill upgradation is necessary to adopt latest technology.
BUSINESS ENVIRONMENT : The Changing Business Environment is always a problem
to SSI Sector.

// 66 //
16. VISION

"ENHANCING THE COMPETITIVENESS

AND

GROWTH OF CLUSTER IN DOMESTIC AS WELL AS

INTERNATIONAL
TECHNOLOGICAL

MARKET
UPGRADATION,

THROUGH
MARKETING,

NETWORKING AND EXCELLENCE IN PRODUCT

QUALITY ."

17. STRATEGY :The Bearing and Bearing Component cluster at Jaipur has
enough growth potential provided strategic intervention is made
in certain Key Area. The "Key Area" in which the strategic
intervention are needed.
Technology upgradation.
Developing Business Development Service.
Networking Among Cluster Actor
Infrastructural Development
Export Led Growth
Marketing and Diversification
Liberalizing Govt. rules & regulation.

// 67 //

These are discussed in detail in the Action Plan. An

outside organization intervention cannot produce desired result,
especially in the long run. Unless effort are made for capacity
building of cluster actor so the capacity building among cluster
actor are very essential need for making the cluster development
initiative sustainable in the long run.
The Cluster Actor should realize "The Need to Change "
(In the era of Globalization " and Initiate Action In order to
solve their problem and making themselves competitive.

18. ACTION PLAN

18.1 TECHNOLOGY UPGRADATION :Technology upgradation remain one of the primary needs of
the cluster. The process includes visit to entrepreneur, under
standing the technological problem, Identifying the scope of
Improvement, Informing the same to the entrepreneur and
carrying out implementation as per requirement. These are
following measure require for technological upgradation .
There is urgent need to equip the cluster with following
testing facilities at Jaipur.

// 68 //

TESTING OF RACE'S :-

Chemical composition of raw material Including

Microscopic examination

Ultrasonic Testing

Oxygen contain Checking

R.A. Value measurement for Rough measurement.

Calibration Testing equipment

TESTING OF BALL
-

Ball Circumference Testing ( On Tele round)

Ball Roundness Testing ( on Tele round)

Spherical Ness Checking

Measurement of Ball Diameter with the help of

Dial Indicator/Air electronic gauge

Crushing Load testing

TESTING OF CAGE :
-

Dimensional check up with the Help of Gauges.

Profile projector for profile measurement.

//

69 //

TESTING OF BEARING :
-

Roundness checking with the help of Tell Round

Surfaces Roughness test

Bearing life testing

Noise Level Testing

Radial Clearance Testing

Static Load Testing

Axial Clearance Checking

There is urgent need to establish a common facility

service center to the SSI units for following services.
-

Tool Design based on Advanced technology

To Provide Testing and Calibration facility

To Install profile projector Grinding Machine

18.2 DEVELOPMENT BUSINESS DEVELOPMENT

SERVICE :
There is urgent need of Business Development Service
provider in the technical and marketing Area. There is no R&D
Centre and testing Laboratory related to bearing. As a result the
technology and the process of manufacturing has remained
unchanged more our there is no consultant/expert who can guide
them to International marketing of Bearing, expert procedure &
Documentation.
// 70 //

Therefore, Business Development Services have to be

developed in the Cluster, this will be an effective Instrument of
ensuring sustainability of the desired Initiative.

18.3 NET WORKING AMONG CLUSTER ACTOR :The Net working Among Cluster Actor is very Limited.
The Bearing Association is not very Active. The Association
became Active when Entrepreneur faces problem, The
interaction of entrepreneur is very Limited.
A strong Net work has to be created among Cluster Actors
so that they can Jointly solve each other problem pressurize
Govt. in Liberalizing the Rules & Regulation. They even can
jointly market their product in the Global market in order to
compete with "The Economics of Scale" Approach of Chinese
Manufacturer. The Industry Association need to be made
proactive and net working has to be strengthened. This can be
taken up as a part of capacity Building Exercise. The Benefit of
Net Working have to be explained to them.
18.4 INFRASTRUCTURE DEVELOPMENT : There are about 2000 Tiny/Artisan units. In Jaipur bearing &
Bearing Component Cluster. They are scattered in Different
Area and functioning under rented shop.

// 71 //

There is urgent need of state Govt Intervention in this

matter. It's therefore Urgently requirement of a Special complex
in Industrial Estate to be developed by the State Govt.
exclusively for Tiny/ Artisan Unit. These Unit be provided with
basic Infrastructure facilities.
18.5 EXPORT LED GROWTH :The export of Bearing Races directly from SSI Unit is not
substantial. However the races manufactured by these SSI Units
are being indirectly exported through large scale Bearing
Manufacturer .
The Direct export of Bearing & Bearing Component is
possible if the product are made by Adopting Better technology
then the potential of export market will be bright.
An export led growth strategy have to be pursued by
Adopting following steps.
Brand Building
Participation in International Exhibition .
Developing Brochures.
Joint Marketing

// 72 //

Forming Consortium and their website effort should be made

to establish direct linkage between manufacturer and customer.
There is urgent need to organized training on International
Marketing,

Brand

Building,

Export

Procedure

&

Documentation, Exposure Visit, Participation in International

Exhibition.

18.6 MARKETING AND DIVERSIFICATION

The OEM and replacement market control the market dynamics
of Bearing. The OEM and replacement market both account for
40% of total demand of Bearing Industry Individually. The
Bearing Manufacturer are only supplying to replacement
market. There is vast market of OEM Sector.
So there is urgent need to organize seminar on marketing
and diversification. The proper marketing coupled with quality
improvement and standardization can make the enterprise more
competitive. A Buyer and seller meet is also to be organized
where the buyer understand the requirement of the seller and
vice versa.
The potential of Diversification is not properly exploited
by the Entrepreneur in this cluster. A work shop on
diversification is to be organized where the entrepreneur are
provided information on various diversification area and the
potential of each area.
// 73 //

18.7 LIVERALISING GOVT. RULES AND

REGULATIONS :The Entrepreneur are facing problem to comply with the rules
and regulation of several Govt. Department. According to
estimate an entrepreneur need to interact with 14 Govt.
Department Most of their time is spend in filling up forms and
submitting paper as per their requirement.
Therefore Govt. rules and regulation have to be liberalized.
The role of Govt. Department should be a facilitator rather than
regulator.