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Thrissur Traditional Furniture Cluster Chevoor Private Limited shall act as a Common Facility Centre at Thrissur. This is to facilitate raw material primary processing, design, value added component development services as to enable cluster firms produce quality value added products.

Common Facility Centre is envisaged as one that will complement upgrading initiatives of cluster firms as to facilitate their graduation into more quality component based, better designed value-added products competitively.

Cluster Stakeholders shall have convenient access to inputs. Local traders and saw mill operators facilitate access to inputs. Cluster firms and SPV members have been benchmarking competition through visits to other units in Kerala and Bangalore. This has helped in appropriately conceiving upgrading needs.

Financial Institutions in the cluster are progressively being more pro-active. Many local financial institutions are progressively supporting cluster-based interventions in the cluster. The presence of Institutions such as the Government Engineering College is an added benefit to this cluster. As a matter of fact, they are represented in the Cluster Development Co-ordination Committee (CDCC).

Cluster firms have been experiencing rising demand, albeit at reduced profit margins. The presence of strong industry associations such as the Chevoor Furniture Manufacturers and Traders Confederation is fostering co-operative initiatives amongst cluster firms. This has enhanced competitiveness of member units and also their capacities & capabilities to upgrade technology.

Traditionally skilled labour force in furniture manufacturing is locally available. Cluster firms could graduate into higher value-added production through design, quality seasoning, finger joint board development and development of better-quality components. There is ample scope to upgrade into joint procurement initiatives as well as marketing initiatives.

The Common Facility envisages the following important machinery, equipment and related services:

a. Designing Facilities

b. Primary Processing of Raw Material

c. Finger Joint Board Development

d. Quality Value added Component Development Equipment

The requirement of SPV members are adequate to utilize capacity of the Common Facility Centre. Nevertheless, as a developmental agenda, certain capacity shall be reserved for use by other firms and non SPV members on priority basis. The balance capacity shall be availed by SPV members. There will not be any distinction in the user charges. User Charges levied will remain the same for such non SPV members as well as for SPV members.

Therefore, upgrading of more such units will be possible. The Common Facility Centre fits into the long-term vision of the

cluster in terms of it enabling cluster enterprises improve productivity and efficiency by means of technology up gradation and also help them to enhance capacity utilization and offer value added products and service.

Technology upgrading implies the option of establishing raw material primary processing, design studio and quality component development facility which are capital intensive and have to be established as common facilities.

The Common Facility is expected to enhance the levels of co-operation and joint action amongst cluster stakeholders and SPV members to co-operate more in the areas of procurement and marketing once productivity, quality upgrading and value-added product development is ensured.

Importantly, it will complement the efforts of the dynamic State Government as well as the MSME-DI in promoting clusters in the state.