Business Analytics in Steel Product Fabrication Cluster

Abstract

Forty micro and small steel products manufacturing enterprises in Salem District of Tamil Nadu, South India faced problems in value addition of the steel products like windows, grill gates, truss work and panel boards manufactured by them. They formed M/s Salem Steel Cluster Pvt Ltd; Salem, a special purpose vehicle, in 2012 by getting funds from the Government of Tamil Nadu and the Government of India through the Tamil Nadu Small Industries Development Corporation under Micro Small Enterprises Cluster Development Programme of Ministry of Micro, Small and Medium Enterprises, Government of India. The objective is to find the physical and financial performance of the Steel Product Fabrication Cluster (SPFC) before and after Cluster Development Approach (CDA) to find the productivity of the cluster by taking independent variables like number of units, employment and production and dependent variable like turnover, and to find the performance of SPFC before and after CDA. To find business analytics models like Diagnostic Analytics, Descriptive Analytics, Inferential Analytics, Predictive Analytics, Prescriptive Analytics and Decision Analytics. The methodology adopted is by collecting primary data like number of units, employment in numbers, production in crores and turnover in crores before and after CDA and analysing using Compound Annual Growth Rate, Descriptive Analysis, Correlation Analysis, Trend Analysis, Regression Analysis, Structural Equation Modelling and T-Test. There is a Difference in Difference between controlled units which have not adopted CDA and experimental units which have adopted CDA, where there is an increase in number of units, employment, profit and turnover. To conclude, there is an increase in number of units, employment, production and turnover after CDA when compared to before CDA, which leads to an increase in productivity thereby Sustainable Development Goals of 1, 4, 5, 8 and 9 are achieved.