Faridabad business cluster: Legacy of competence | SupportBiz

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Faridabad business cluster: Legacy of competence

One of India’s largest automobile engineering clusters, Faridabad, located near national capital Delhi, comprises of SMEs manufacturing footwear, garments, engineering and machine tools, medical equipment, books, among other things.

The biggest plus point for this cluster is the fact that it is quite old. The entrepreneurs here have been doing business are experienced and hold a lot of credibility in the market.

Struggling with tough Infrastructure issues, the SMEs in this cluster are striving to make a strong impact at the national and international levels.

The Manufacturers Association of Faridabad (MAF) was incepted in 1980 in order to give entrepreneurs a platform to voice the various issues faced by them. The association represents around 3,000 companies around Faridabad. Suresh Agarwal, President of MAF, spoke to SupportBiz about the challenges presently being faced by local industries. “Sometimes, transport and logistics become a big challenge for the companies in Faridabad. It is tough to get raw material to our place or ship finished equipment to the customers. Power availability is the second most challenging issue that we all are facing,” he stated.  

Commenting on the levels of competence of individual businesses in Faridabad, Ramneek Prabhakar, owner of Prabhakar Press and General Secretary of the MAF, stated, “Our industries are doing business nationally and globally. Our credibility levels among clients are very high. However, if we get support from government agencies in resolving our infrastructure issues, we can make a huge impact at the global level.”

Approximately 3.5 lakh people are employment in the Faridabad businesses, in total. Of this, close to 2.5 lakh people represent the organized sector and are insured, whereas about 1.5 lakh employees work in the unorganized sector.

In the last financial year, the total taxes collected from the businesses of this region were approximate Rs. 3,000 crore. “Faridabad contributes up to 40% to the total tax collection in Haryana,” informed Prabhakar.

Commenting on the challenges faced by the manufacturing segment in Faridabad, Rishi Tyagi, owner of Kissan Motors, which has been producing motors and pumps by the brand name of Kissan and Venus for over 20 years, said, “We work under difficult conditions. From the availability of labour to that of basic infrastructure like power, we face problems at every level. Our production gets affected by up to 50% due to the non-availability of power. Running our production line on diesel presents a lot of difficulties because some of the manufacturing equipments that are used in our business cannot run on alternate sources of power.”

AbhishekTaneja, Director of Faridabad-based Sangeeta Industries, believes that the city has great potential, but it needs immediate attention from government agencies. “State government laws need to be more encouraging for SMEs. There is a need to make and enforce laws with greater clarity and transparency. Labour laws have to be made in consideration of the fact that SMEs in the manufacturing segment have different scales of opportunities, and so, they must be changed accordingly,” he stated.

The owner of Watline Systems, Azhar Khan, also stated the challenges he faced in running a manufacturing unit in Faridabad. “Power crisis is a big issue that we face in our day-to-day business operations. Controlling the cost of production becomes a major challenge for us when we have to rely on diesel generators for production. The fluctuation of power also tampers with the quality of our output,” he stated.

The government is making efforts to resolve these issues, but the local entrepreneurs are complaining that the schemes and programmes drafted for the improvement of business are confined to their documentation only. 

The list of challenges faced by the local businesses is long, but many of them – from automobiles as well as other segments – have been successful in establishing a high degree of credibility for themselves. There is no doubt in the fact that Faridabad is an important SME destination to watch out for.