Close to 40% of industrial output is through MSME production from across the country-accepted as engine of economic growth for promoting equitable development. They are labor intensive and hence provide direct employment to multitudes.

Considering this key and critical segment, CII began its intervention by forming number of MSME companies into clusters.

The cluster methodology brings in both value added services and at most economical cost-since the intervention is given as a shared service to the members.


  • Identification of cluster - 5 to 10 numbers of MSMEs are grouped together in a closer geographical location on voluntary basis for TCM intervention. The cluster is either heterogeneous (dissimilar in industry) or homogeneous (similar in industry). Generally, CII Zonal Chairman groups the closely located small and mid size companies through a common interest.
    The short-listed companies are grouped through the representation of either CEO/CFO or both.
  • Training on the TCM concepts - as part of initiation of TCM in a cluster, all functional heads of all represented companies are trained on the preliminary concepts and tools of TCM.
    This is done to bring in enlightening interest to the cross functional team on TCM and thereby create a bedrock for smooth trajectory of TCM movement in the group companies.
  • Formation of multifunctional teams - As a next step
    1. Provision of structured formats under various resource heads.
    2. Training and provision of Guidelines for filling-in formats.
    3. Time frame is defined for format filling.
  • TCM across the value chain
    1. Identification of specific issues in the business model for addressing through TCM.
    2. Observation and study of value chain of the organization.
    3. Activity and resource alignment in the value chain.
    4. Process and product profile study.
    5. Designing cost MIS for decision support systems
    6. Simulation of model
    7. Making final presentation
    8. Submission of cost manual-providing best TCM practices, logic for model development, model analysis and reporting.


Through a feedback system, CII has comprehended the benefits accrued to various MSMEs across the country.
The intervention has brought in the following benefits:

1. Enhanced cost consciousness and awareness across the levels and functions.
2. Introduction to structured cost management approach.
3. Modeling of cost data through simulation and analysis.
4. Supporting decision making process through a structured reporting mechanism.


1. Coimbatore - Geo Cluster
2. Coimbatore - LMW Cluster
3. Coimbatore - Pricol Cluster
4. Madurai Cluster - 4 companies
5. Ambattur Cluster - 10 companies
6. Hyderabad Cluster - 7 companies
7. Puducherry Cluster - 6 companies
8. Vijayawada Cluster - 4 companies in 2 phases
9. Kolhapur - Foundry Cluster - In the process
10. Mohali
11. Gurgaon
12. Jalandhar Hand Tool cluster
13. Parwanoo
14. ABB Vendor Cluster - Nashik
15. Crompton Greaves Limited Vendor Cluster - Nashik
16. Munjal Showa Vendor Clusters - Faridabad & Gurgaon
17. Pune Open Cluster - Pune
18. Hand Tools Cluster - Jallandhar
19. Coimbatore Open Cluster - Coimbatore
20. ABB Faridabad Cluster - Faridabad
21. LMW Vendor Cluster - Coimbatore
22. Vadodara Open Cluster - Vadodara