The Balasore plastic cluster comprises of Six enterprises into manufacturing of H.D.P.E. / PVC pipes out of which two manufacture entire assembly line products; one into pipe fittings only; two into fishing nets out of which one also manufactures threads & twines; six into HDPE/ PP Woven sacks; one into water container; ten into film & tubes; two into plastic Floats; two into granulation; three into threading on pipes; one into printing of rappers; one into furniture and house wares & other two to three enterprises are into bottles, seat covers, caps etc.

In total fourty-one enterprises spread over three Industrial Estates and adjoining areas out of which four enterprises provide service to other core firms and the rest are in manufacturing sector. The nature of service provided by the above four enterprises is threading on pipe and polythene printing. Eight enterprises are limited companies, six are private limited and the rest are on proprietorship concerns.

The investment in these core firms ranges from 20 lacks to 2000 lacks on fixed assets. About thirteen enterprises have plant & machinery with investment above Rs. 50 Lacks and eight are with Rs. 15 Lacks to Rs.50 Lacks and the rest are with below Rs. 15 lacks. These Firms have provided direct employment from a minimum of eight in bottle manufacturing enterprise to the maximum of 458 in PVC pipes manufacturing one.

There are two women and one SC entrepreneurs operating in the cluster, others being from general category.its products to countries like Bhutan, Denmark, and Africa etc. through UNICEF to the extent of three percent of its total production. These products are also openly marketed through dealers placed at almost all the trade centers of the state.

The woven sack manufacturers are vendors to cement & sugar factories, Rice Mills, Flour Mills, NALCO and other mineral-based industries operating in the state. They also market their products through dealers within and outside the state.

Fishing nets and floats are sold in the domestic market through dealers, though exporters lift a small volume of the products. Films and tubes, furniture and granules are marketed within and outside the state through dealers.

Plastic bottles are marketed to some of the core firms of the cluster, pesticide and medicine manufacturers within and outside the district. These products are on trial to penetrate into Apex Milk Federation of the state and Kolkata market.

There are also merchant traders and marketing agents through home about 60% of the products of the cluster are sold. A substantial value addition takes place here.

The core firms procure their raw materials from Haldia, Muzaffarnagar, Jodhpur, Bhilai, Gandhar, Ratnagiri, etc. directly as well as through a dealer named M/s Agarwals & another Govt. organization in the name of OSIC located at Balasore. Similarly, spare parts are procured fromMost of the firms prefer to send their employees to CIPET for short term training course on plastic technology and some other time CIPET comes to the firms for imparting awareness training on quality & productivity.

A number of financing Institutions in both Private and Public sector have opened their branches in the plastic city and extend both fixed capital and working capital assistance to the core firms.

A handful of service providers like raw material and spare parts suppliers, finished product marketers, financial and technical consultants etc. work in the cluster whose contribution for the cluster development is no less. Common hiring of either financial or technical BDS providers is not practised by the Core Firms which otherwise would have minimised the expenditure thereby increasing the output.

District Industries Centre, Balasore is the Nodal Agency for Micro, Small and Medium Enterprises at the district level. Other than registering the MSMEs it also implements the incentive schemes provided in the Industrial Policy Resolutions from time to time and take up study on health status of the enterprises and intervenes at the time of need to arrest sickness.

As far as regulatory agencies are concerned, the cluster players have to wrestle with them, as they are concerned with key aspect of labour welfare and environmental pollution. In some of the core firms, the perceived usefulness of ESI and PF Authority among workers is quit low and promoters of such firms consider the measures are unnecessary and troublesome.opened at Balasore within the cluster area for utilising its prompt services for the growth of the cluster.

b) Directorate of Industries, Govt. Orissa, Cuttack - This is the nodal organization at the state level for facilitating the growth of MSME sector in the state. It has the capacity to provide support services in the area of activities for the growth of the industry. The DIC is the field office of this organization and provides different services as per the need of the enterprises.

c) Micro, Small and Medium Enterprises Development Institute, Govt. of India, Cuttack-This is the field office of the Development Commissioner (MSME) and also the Ministry of MSME, New Delhi having multiple area of operation starting from capacity building, providing consultancy on diversification of the products, technology upgradation, improvement in quality, productivity, marketing and export of the products etc. This organization can also play a pivotal role for the overall growth of the cluster.

d) United Commercial Bank: United Commercial Bank being the lead bank of the district plays a vital role in this cluster area by financing to the entrepreneurs engaged in plastic industries.

e) State Bank of India: The State Bank of India is the bank with largest network in the state. This has the potential and the credit of providing highest number of finance in the district.

f) Small Industries Development Bank of India (SIDBI): This is a subsidiary of Industrial Development Bank of India, which looks after

k) Office of the Commissioner, Commercial Taxes: Presently this department is looking after the administration of VAT in the state.

l) Regional Research Laboratory (RRL): This is a premier research organization under ICSR located at Bhubaneswar. This can provide consultancy in the field of energy conservation, waste minimisation and up gradation of technology in the cluster.

m) Local Nationalized Banks: These financial institutions have been financing the local industries of the cluster for providing them working capital assistance. During discussions, they have assured all sorts of cooperation for the development of cluster.

n) Industrial Development Corporation of Orissa Ltd.: This is a Government of Orissa undertaking, which provides infrastructural facilities to set up micro and small-scale industries in different localities of the state. This can assist in supply of industrial shed and land for use of local enterprises for processing their production.

o) Local engineering Colleges/ ITI in the vicinity: There is a need to explore possibilities in the field of technology, product diversification and market avenues through these institutions to give a boost to the cluster development programme. They have their research wing, which would look after these activities and take up for implementation. Further the pass out students of these Institutions can be motivated to take up entrepreneurship as their carrier and add to the existing number of enterprises, which will strengthen the existing cluster.

The manufacturing firms obtain raw materials from West Bengal, Maharastra, Gujarat, etc. directly or through dealers on individual order placement basis. Joint purchase seldom exists. The case is similar for spare parts that are obtained from Kolkata, Bangalore etc. Product marketing is done on individual brand name rather than common branding. Observing the waste generated in the state, some of these commodity manufacturers encouraged some other potential entrepreneurs to establish enterprises for manufacture of granules of the waste which otherwise was lifted to Kolkata. The response was positive due to hand holding support extended by the existing cluster actors and financing institutions resulting in establishment of 2 to 3 recycling units.

Similar was the case of coming up three pipe-threading units and another polythene-printing unit. Moreover, all these happened due to the cognition of genius entrepreneurs who have absolute affinity for economic mobilization of the district and the state as a whole. The relationship among such firms constitutes a strong bond and above all the interrelationship among all the stakeholders of the cluster is good despite very existence of product & market competition at individual level.

The entrepreneurs are qualified and high profiled business tycoons. Managerial skill and shop floor experience of these people has helped them come such a long way. In case any misunderstanding develops, they quickly adjust to the needs of the situation.

In commodity manufacturing sector, enterprises with pipes and pipefittings are vendors to Govt. Depts. like RWSS, Irrigation, Public Health Dept., Agro Industries Corporation etc. and corporate houses like NALCO, Birla Tyres, Emami Paper Mills Ltd. etc. One enterprise M/s Oriplast Ltd. exports Kolkata, Bangalore, Chennai, etc. directly or through the spare parts suppliers placed in the town. In addition, all these procurements are made on individual basis rather than common procurement.

Some of the core firms, basically in Pipe & Woven sack manufacturing sector, posses captive workshops for repair & maintenance for the machinery where as the others take the help of engineering workshops located in the cluster area.

There are no cluster specific associations or consortia but however all most all the core firms are members of either three Industrial Associations present in the district. These are Balasore Chamber of Industries & Commerce, North Orissa Chamber of Commerce & Industry & District Small Scale Industries Association. These associations are formed on different ideologies and principles with a common agenda to help enterprises prosper. Further sharing of information among core firms exists sparingly and they sit together on ad-hoc basis to address common issues.

Regulatory authorities like Labour Dept., Inspector of factories & Boilers, Sales Tax, Excise Dept., OSPCB etc. exist in the cluster. The organisations formulating the policies and promotional agencies like DIC, OSIC, & MSME Development Institute of Cuttack work in the Cluster. DIC & OSIC, Balasore have moderate relation with the core firms. NSIC & MSME Development Institute, Cuttack organise seminars, workshops & short term training programmes on quality & productivity of the firms in association with Industrial Associations.

Support institutions like CIPET and CTTC of Bhubaneswar extend all possible assistance to the stakeholders in research and development field.

Institution having direct stake in the cluster:

a) Balasore Chamber of Industries & Commerce – A prominent industry association enrolling the local plastic industries including other industries as its members is very proactive to the cluster development. Very often the members and plastic entrepreneurs in particular sit together to discuss about the common problems faced by the plastic industries.

b) All Orissa PVC Pipes manufacturers Association-This is an apex body at the State level, which play a proactive role in fulfilling the gaps of the plastic segment in this area.

c) All Orissa Woven Sacks manufacturers Association- This is also an apex body at the State level which play a proactive role in fulfilling the gaps of the plastic segment in this area.

Institutions having indirect relationship with the cluster:

a) Central Institute of Plastic Engineering and Technology (CIPET), Bhubaneswar -This is the premier Institute under the Min. of Chemicals & Fertilizers, Govt. of India working in the State Capital that undertakes various short term skill development/ upgradation programme in the field of Plastic Engineering & Technology. This Institution can provide all the support for sustainable development of the cluster. However, this being located at Bhubaneswar, which is more than 200 km on road, the local entrepreneurs are not able to take the full benefit out of this organisation. Hence an extension centre of this Organization should be the finance of MSE sector. This bank is also looking after the cluster development programme in some of the clusters in different areas. This has some schemes for up gradation of technology of MSMEs.

g) National Bank for Agricultural and Rural Development (NABARD): This Institution has pioneered in the field of cluster development programme by taking up some clusters in different areas through formation of Self Help Groups. This has the potential of working for the non-farm sector for their future prosperity and growth.

h) National Small Industries Corporation (NSIC): It is a Government of India undertaking the state unit of which is located at Cuttack. This office provides assistance in supply of raw material and hire purchase of machinery and conducts skill development programmes for the workers of the small-scale industries. So, the availability of raw material and machinery can be made through this institution for regular production and process.

i) Export Promotion and Marketing (EPM): This is an organization under Government of Orissa, which looks after the marketing of the products by rate contract. This can also provide the details and addresses of importers of different products for facilitating the export.

j) NESCO: The North Orissa Electricity Supply Company is supplying the power required for mechanisation of the process of manufacturing. The service of this supply company has tremendously improved over the years but still it has not come out of the syndrome of unwarranted power tripping.

p) Indian Institute of Technology, Kharagpur: This Institution having been producing the best brains in the country, can contribute tremendously to the services in the area of product diversification, technology up gradation, research and development which will brighten the scope of existing cluster by enhancing its competitiveness in the international sphere.

q) Central Tool Room, Bhubaneswar: This serves to train the people for manufacturing different design of machine tools etc. to meet the requirements of the Industries.