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Transforming Engineering Industries

Kozhikode, an important business district of Kerala is known for centuries as a hub for tiles and wood industry. In the last 2 decades construction industry has witnessed a boom in Kerala with RCC replacing wood and tiles as major materials of construction. The demand for machinery for mechanisation of these industries resulted in the emergence of engineering enterprises for manufacture of machinery. The engineering services requirements of Gwalior Rayons that set up a massive wood pulp based viscose staple fiber for the textile industry gave further fillip to the growth of engineering industries in Kozhikode. The result of these natural forces is the Cluster of Machinery Manufacturers in the district. There are 65 machinery manufacturing MSMEs in the cluster.
Kozhikode Machinery Manufacturers Cluster has continuously played a leading role in the development of the engineering services and machine tool industry which is the backbone for industrial growth of India.
Micro, Small and Medium Enterprises (MSMEs) are the drivers of the economy of developed as well as developing and under developed countries. Their contribution for production, employment and exports are enormous. Globalisation of Indian economy in 1991 and the formation of World Trade Organisation (WTO) in 1995 to liberalise world trade with emphasis on „free trade‟ have thrown open new challenges and opportunities for the MSMEs. In order to enhance the competitiveness of the MSME Sector in the global context the central and state governments have been implementing a number of schemes facilitating the industries, especially clusters of MSMEs to create, operate and maintain common facilities to enable the individual MSMEs to increase production, productivity and profitability. The MSE-CDP is one such scheme of Ministry of MSME that offers 70-90 percent grant for establishing CFCs.
Ferosmith Engineering Consortium (P) Ltd., the Special Purpose Vehicle (SPV) promoted by the cluster enterprises realized that the cluster was not growing in real terms and hence the cluster enterprises should collectively strive for overcoming the stagnation and move forward in a growth trajectory.

FEC was started with around few manufacturers joining hands to form an association which has grown in size to the current number of over 60 plus members. The initiatives and activities of FEC are constantly focused at providing something in return to the industry, for the industry and by the industry.
FEC has over the years has engaged itself to support the industry to increase competitiveness, technology, productivity and quality to ensure its overall advancement and growth. It is also proactive in taking new initiatives to promote advancement of manufacturing industry in Kozhikode, Kerala.


FEC proactively assists the machine industry and its membership by acting as a catalyst. Comprising large, medium and small scale units.
Main objectives include:
• Improve the industry’s image.
• Enhance productivity and competitiveness in manufacturing.
• Upgrade quality and technology standards.
• Interact with Government on policy issues important to the industry
• Disseminate information about the industry and its achievements.
• Provide business opportunities through exhibitions, trade missions and related activities.

Goal of the Consortium:

• To provide and cater to the steel Casting requirements as it has many advantages over fabrication
• Cost savings benefits in procurement, transportation and supply of materials
• Emphasis on maintaining the quality of the product for which a detailed DSR – Diagnostic Study Report) and DPR – Detailed Project Report was prepared by ITCOT, Chennai.
• Procured 2.12 acres of land at Mavoor, Chathamangalam panchayat for the implementation of the project.
• Recommendation from ITCOT has been submitted to Govt. for further approval and hope to get it sanctioned within year 2014-15.