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This is an archive article published on September 28, 2004

‘SSIs to drive scale in manufacturing’

India's plans to become a global hub for manufacturing are taking shape at a swanky home-office in Vasant Vihar. Once hounded by the CBI ove...

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India’s plans to become a global hub for manufacturing are taking shape at a swanky home-office in Vasant Vihar. Once hounded by the CBI over ‘links’ with Big Bull Harshad Mehta, technocrat-manager V. Krishnamurthy seems to be getting used to the fact that he heads the National Manufacturing Competitiveness Council (NMCC).

The top heavy 20-member government Council — which is still waiting for a door to hang its name-plate on — was set up this month to ascertain where growth in manufacturing will come from and how. His goal: To find growth in scale and quality of operations. ‘‘I’m taking stock, it’s early days. Honestly speaking, I have been out of touch with ground realities,’’ says the man credited with turning around SAIL and making Maruti Udyog a success story.

Krishnamurthy also doesn’t want to ‘‘get into a controversy’’ about the simmering issue of job reservations in the private sector. ‘‘I feel private industry itself needs to be more sensitive to social concerns. I have had representations from industry on this and will take a public stand soon,’’ he says.

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He does, however, agree that time is short. ‘‘Fifteen or 20 years ago, we (Indians) were ahead in manufacturing, but now we seem to have slowed down. There is a general feeling that China is overtaking us. The situation calls for speedy action,’’ he says at his private office, a ‘‘not-for-profit think tank.’’

When asked how he will marry the small-scale industry with demands of scale, Krishnamurthy says: ‘‘SSIs are the real engines of growth but face many problems when left to themselves. We want larger industries to understand that they can and SSIs can work to mutual advantage. A classic example is Maruti, whose technical and financial assistance allowed smaller vendors to grow into independent manufacturers. We want to establish and institutionalise this trend.’’

For now, he is looking at building a team — from the ‘‘young and bright’’ executives in private corporate offices. ‘‘The NCCM must tap industry, especially young executives. This will help young people gain experience and get us industry expertise, though without having them on the rolls,’’ says Krishnamurthy, who has identified future growth will come from pharmaceuticals, textiles and auto components.

‘‘We will emphasise on SSIs and create linkages with other sectors and larger companies. If the idea is good it has never been opposed, so I don’t foresee much opposition for the Council’s plans either,’’ believes Krishnamurthy. Manufacturing is waiting to see what the technocrat will serve.

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