New Zealand Workshop
“Linking clusters in a large economy (India)
with clusters in a small economy (New
Zealand) to create opportunities for
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international
business.”
CEO Visit
Agenda
• Introductions – Alan Koziarski
• A little theory
• A few examples
– Dairy and Wool– Cliff Fuller
– Auckland – Stephen Cavanagh
• A look at the Future
• Discussion
• What do you want from a TCI conference in New
Zealand?
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The New Zealand Team
• Cliff Fuller, Trade Commissioner, Delhi, NZTE
• Gareth Chaplin, Chief Economist, NZTE,
• Stephen Cavanagh, Auckland Tourism, Events,
Economic Development
• Paul Frater, Green Chip Ltd
• Ifor Ffowcs Williams, Cluster Navigators Ltd
• Alan Koziarski, Regional Director, SSEA, NZTE
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Quiz Questions
1. Who wrote “Small is Beautiful”
2. Who wrote “Who Says Elephants’ Can’t Dance”
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Add Lustre to your Clusters
• Action
• Firms matter most
• Value chains
• Clusters
• The business environment can be changed
• Future - focus on where the action is heading (3-5
years)
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Only Companies
Large vertically integrated companies doing everything
Company 1
Company 2
R&D
Design
Raw Materials
Manufacturing
Distribution
Generalised Value Chain
Customer
Local Competitiveness
Specialised companies, vertically integrated regions
(clusters) – the cluster, generally regionally based, tried to
do everything
R&D
Design
Raw Materials
Manufacturing
Distribution
Generalised Value Chain
Customer
“New Clustering”
Specialised companies, specialised regions, global
integration – the global integrator will win
Region
Region
Region
Global Integration Function
R&D
Design
Raw Materials
Manufacturing
Distribution
Generalised Value Chain
Customer
Mustering the Clusters
• Small economies need to internationalise
• Enhancing the effectiveness generates opportunities
– Infill of an identified gap as a supplier of a service or
product
– Partner in R&D, innovation,
– Market
– Outsourcing of BPO
– Manufacturing in market
– Distribution channels and logistics
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Small is Beautiful Isn't It?
• Start on your knees and work
your way down
• Price
– Licences 1 tenth of Western
prices
– Need to meet price expectations
• Just about all interactions are
unequal
• Niche market segments, small
scale, small volume
• Identify gaps and seek most
appropriate solution
– World class, appropriate scale,
brand fit
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Cliff Fuller, NZ Trade Commissioner, Delhi
Selected Cluster Interactions – Dairy and Wool
ISSUES AND OPPORTUNITIES
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Quiz Questions
1. ..
2. ..
3. Which country has the largest dairy industry?
4. Which country is the largest dairy exporter?
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Dairy
Milk production ( million
metric tonnes)
Milk supply/consumption by
2021 (million metric tonnes)
Per capita consumption per day
% of world production
% growth in milk production
India
NZ
110
16
180
20
265 grams
15%
3%
11 litres
2%
2.5%
CEO Visit
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But it is Regional
Per capita
consumption of
milk
Total Milk
production
Average yield per
day (crossbreed)
Average production
per day
Average herd size
Milk from organised
dairy farms
Punjab
950 gms
National average
265 gms
9.2 million MT
-
>9.01 litres
<5 litres
>14 litres
< 5 litres
7-8 milking animals 2-3 milking animals
20%
2%
CEO Visit
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Wool cluster
• Long history of artisan carpet
weaving in Bhadohi / Mirzapur
• Modern trade established by
Iranian dealers in 1950
• Import wool from overseas and
blend with local coarse wool,
mainly from Rajasthan
• Spin into yarn in Rajasthan –
Bikaner is the hub
• Convert into handmade carpets
in Uttar Pradesh
• Export to consumers in USA,
Europe
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Woollen carpets – Indian cluster
• The carpet belt: Bhadohi – Mirzapur – Varanasi
• 300 carpet mills
• 1 -2 million employees
• All India Carpet Manufacturers Association
• Carpet Export Promotion Council (Delhi)
• Indian Institute of Carpet Technology
• Hand-knotted
hand-tufted
CEO Visit
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Woollen yarn mills
• Rajasthan: 60% in Bikaner
• 50 spinning mills
• 15,000 people
• New Zealand supplies 12 - 14 million kg or 35%
• Other countries supply 30% - India supplies 35%
• NZ yarn is strong, clean, scoured before export
• Most yarn is blended
CEO Visit
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New Zealand wool cluster
• Canterbury
–
–
–
–
–
Sheep
NZ Wool Services exports 65% wool from NZ to India
Wool Services of NZ - Fernmark
Wool Research Organisation NZ / Canesis / AgResearch
Lincoln University
• Hawkes Bay
– Sheep
– NZ Wool Testing Authority
CEO Visit
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Looking to the future
• Lower costs
• Social accountability
• Sheep breeding in India to improve local wool
• Marketing: promote wool vs synthetics
• New products, new characteristics
• Education, R & D links
• NZ example: Icebreaker with NZ Merino
• Missing link: the market
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Stephen Cavanagh
Selected Cluster Interactions
ISSUES AND OPPORTUNITIES
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Quiz Questions
1. Who wrote “Small is Beautiful”
2. Who wrote “Who Says Elephants’ Can’t Dance”
3. Which country has the largest dairy industry?
4. Which country is the largest dairy exporter?
5. Which country has the highest score in a single test
innings?
6. Which country has the lowest?
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Answers
Questions
Divide
What should large clusters do when dealing with small clusters? Why?
What should small clusters do when dealing with large clusters? Why?
What do expect from a TCI Conference in New Zealand?
DISCUSSION AND WORKSHOP
CEO Visit
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Future Cluster Linkages
• Aviation: Bangalore – Christchurch
• Apple technology: Himachal Pradesh – Hawkes Bay
• Building products: Delhi - Auckland
• Earthquake engineering: Delhi – Wellington
• Wine: Nashik – Marlborough
• Health IT: Hyderabad – Auckland
• Wood: Kandla / Bangalore – New Zealand
• Boat building: Kochin / Goa – Auckland
• Natural gas vehicle industry?
• Business Services
CEO Visit
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Media & Entertainment
• Demographics + Economic growth
• Narrowcasting - targeting niche styles
• Regional – local content in local language
• International – media market outside India
• Organised funding – capital + corporatisation
• Digitisation – Analog to digital
• Convergence – Entertainment + Information +
Telecommunications
• Deregulation – Policy + framework for co-production
CEO Visit
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Connecting Bollywood and Wellywood
• Destination – Tourism NZ
• Film location – Film NZ, Kuran
• Training – Media Design School
• Special effects – Weta Workshop
• Post production – Park Road
• Advertisement streaming- eBus
• Cinema ticketing – Vista
CEO Visit
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Future Film
• Co Production Agreement between India and New
Zealand in Film Production
• Location benefit in New Zealand (Film NZ can support;
Film Commission can provide incentives for both small /
medium and large budget films)
• Digital & Visual Effects support (Weta, Park Road Post)
• Connecting with Line Producers in NZ for film shoot
• Animation and Gaming technology from NZ
• Adventure Sports – Reality Shows (Khatron ka Khiladi)
CEO Visit
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Indian Dairy Scene
Hand out only
•
India’s demand for milk is likely to grow at 5% per annum, whereas milk production is growing only at 3% !. New
Zealand on the other hand exports 95% of its dairy production.
•
Improvements in productivity, efficiency and innovation of the NZ dairy sector have been key contributors to
making NZ one of the leading dairy players in the world. NZ technology can assist the Indian dairy sector to
improve productivity which is the biggest challenge facing the Indian dairy sector.
•
A dairy technology cluster between Hamilton NZ and Ludhiana Punjab is one way to focus and build a relationship
that works for both sides.
•
There are significant dairy technology and service providers clustered around Hamilton
–
–
–
–
–
–
–
–
•
Trutest Ltd (milk meters, electronic weighing systems, electric fences, medical electronics)
DEC International (controlled drug release technology)
NDA Engineering (dairy engineering)
Gallagher Group ( dairy farm fencing)
Otenz Group (dairy milking systems and processing plants)
Livestock Improvement Corporation (LIC) and Ambreed (dairy genetics).
Innovation Waikato
SourceWorld
Punjab is the top state in commercial dairy farming with Punjab government funding and support to enable
uptake of modern dairy technology along the entire dairy supply chain – from farm to plate. The State has a large
number of dairy farmers/farms, milk producers, processors, veterinary service providers increasingly moving
towards modernising the dairy supply chain. There is a good scope for building key relationships leading to
opportunities and deals for NZ.
CEO Visit
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