CLUSTER DEVELOPMENT PROGRAMME, INDIA

DIAGNOSTIC STUDY
SME

LOCK INDUSTRIES CLUSTER

DINDIGUL (TAMIL NADU)

BY
M RAMALINGAM,
Assistant Engineer (Industries)
DISTRICT INDUSTRIES CENTRE, MADURAI

DEVELOPED UNDER
THE CLUSTER DEVELOPMENT AGENT TRAINING PROGRAMME,
ORGANISED BY UNIDO CDP, NEW DELHI

&

THE ENTREPRENEURSHIP DEVELOPMENT INSTITUTE OF INDIA

(EDII), AHMEDABAD

YEAR 2001
The views expressed in the Diagnostic Studies are those of the
authors and should not be attributed to UNIDO or to the
institutions they may represent.
 DINDIGUL LOCK CLUSTER

CONTENTS

NO. TOPIC PAGE

1 1
INTRODUCTION
1.1 The Present Scenario of The Lock Cluster In Dindigul
1.2 The Cluster Actors
1.3 Raw Materials
1.4 The Vertical Integration In The Cluster

2 3
THE PRODUCT DETAILS
2.1 The Product Range
2.2 Special Features of The Products

3 4
SKETCH OF THE SUPPORT INSTITUTIONS

4 6
THE CLUSTER MAP

5 7
SWOT ANALYSIS

6 7
VISION FOR THE CLUSTER

7 9
ACTION PLAN
 DINDIGUL LOCK CLUSTER

1. INTRODUCTION
1.1 THE PRESENT SCENARIO AT THE LOCK CLUSTER IN DINDIGUL
The lock industry in Dindigul in more than a 100 years old and is spread over 5 villages in the district.
Earlier the number of units in each village was approximately around 50 but now only a total of 43 units
exist in the entire cluster. In some of these units, there is only one or two persons engaged in making of
traditional locks. The present annual turnover of the cluster is estimated around Rs.120 lacs.

Hand-made locks have an international reputation and some of the products are valued at even Rs.1000
per lock. All the locks made in this cluster are hand-made and each lock is unique in its design and
system. However, these locks do not conform to the ISI certification standards. There is no documentation
of the method of manufacturing and even the drawings of the locks do not exist. The entire process is
based on the craftsmen's memory, most of whom have been engaged in this business for many years.

As a consequence of absence of technical information, one cannot capture the skill base of this craft and
so when the concerned manufacturer retires, his knowledge also goes along with him. In olden days, these
skills used to get transferred to the new generation as the craftsmen's children too would involve
themselves in the lock-making occupation. But now due to less remuneration in smith-work, an
increasing number of youngsters are opting for the textile industries and are leaving their traditional
businesses.

Introduction of new types and designs of locks in the cluster is a dire need of today. This would require
formal training in new manufacturing methodologies so that the Dindigul Lock Cluster is able to survive
the onslaught of imported locks.
1.2 THE CLUSTER ACTORS
THE MAIN ACTORS IN THE CLUSTER ARE:

• THE ARTISANS
On an average, a village artisan can produce 3 to 4 locks per day and receive a salary of about Rs.35 to
60, which varies according to the size of the lock that is being manufactured. These artisans are engaged
in different processes such as moulding, welding, assembling etc

• THE ASSEMBLING SME’s

There are 42 lock assembling SME’s within Dindigul, which are spread over five villages. These SME’s
manufacture locks by manual operations only. The complete processes of assembling i.e. key coding,
finishing etc are done manually itself. The total number of workers engaged in these assembling units is
estimated around 210.
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 DINDIGUL LOCK CLUSTER

• MOULDING/WELDING SME’s
There are 10 units involved in moulding and welding operations in the cluster. These units are located
within the Dindigul municipality limit. The total number of workers engaged in these units is estimated
around 40.
1.3 RAW MATERIALS
The major raw materials used are MS flat plates and Brass Plates. These materials are procured from the
nearby towns of Madurai, Salem etc. They are usually picked up by the moulding units of the cluster and
are converted into lock components before supplying them to the village artisans
1.4 THE VERTICAL INTEGRATION IN THE CLUSTER

CUSTOMER

WHOLESALE/RETAIL
TRADERS

LOCK ASSEMBLING SME’s

LOCK MANUFACTURING
SME’s

COMPONENT SUPPLIRS
MOULDING SME’s/
WELDING SME’s

RAW MATERIAL SUPPLIERS

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 DINDIGUL LOCK CLUSTER

2. PRODUCT DETAILS
2.1 THE PRODUCT RANGE

• MANGO LOCKS:
These types of locks are available in various sizes ranging from 10mm to 25 mm and in various materials
like brass, steel, chromium plated, galvanised etc. The different types of locking systems made are;
Double L Triple Locking, Master locking, Lock and Trick locking with interchangeable keys etc.

These locks have a vertically sliding shackle with chromium plating to avoid rusting. They usually have 7
lever systems with flat keys.

• TRICK LOCK:
Trick locks are usually available in 50mm to 70mm sizes, and have levers made of pure brass and iron
shackles. They are called trick locks because they have a special type of pad lock with moveable hold
plate and tricky arrangements that can be operated only by a known person.

• EXCISE LOCK:
It is a marvelous high security lock with triple arrangements to avoid outer sealing. The inbuilt
arrangement provides high security and can be made only by experienced craftsmen. These locks have a
double locking mechanism with caution and warning seal-breaking mechanism.

• EXPORT LOCKS
Export Locks are wonderfully designed for ease and comfort coupled with high security mechanism.
They are available in antique style and finish and attractive designs.

Door locks in pure brass and in mild steel are available with ordinary models to high tech, trick and bell
security systems.

• ALMIRAH LOCKS
Almirah locks are available in pure brass from 50mm to 75mm.

• DRAWER LOCKS
Drawer locks are available in pure brass in 50mm to 75mm sizes with duplicate key-sets.

2.2 SPECIAL FEATURES OF THE PRODUCTS:

• The craftsmen claim that the precision lever mechanism of their locks is unpickable.
• The shackles are meticulous in design and offer greater resistance to anyone who tries to break in.
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 DINDIGUL LOCK CLUSTER

• The levers are so designed that they have a greater degree of non-interchangeability of keys. There's
a combination of proper key-holes to suit male, female, round or flat type of keys.
• A few locks are designed with unique and remarkable synthesis of traditional design and
compatibility with foreign keys.
• The motto of the lock making units in the cluster is: “Our Customers are Trustful and Thieves are
Fearful”

3. SKETCH OF SUPPORT INSTITUTIONS:

• THE DINDIGUL LOCK WORKERS INDUSTRIAL CO-OPERATIVE SOCIETY

The society is a composite lock manufacturing unit and is the only one of its kind in Dindigul. It
manufactures the unique Dindigul type of locks such as Pad locks, Door locks, Furniture locks, Railway
locks, Temple locks, Excise locks and Special Purpose locks

The society was established in the 1957 for the upliftment of the village artisans under the Department of
Industries and Commerce, Government of Tamil Nadu. It was awarded an order worth Rs20 lacs, which
covered almost 90% of the security locks required in the Government departments and other public sector
undertakings of Tamil Nadu. The society has a strong infrastructural setup.

• THE DINDIGUL SMALL AND TINY INDUSTRIES ASSOCIATION

The association was started for the welfare of small and tiny units in the Dindigul district. Two years age,
the association conducted a skill upgradation training programme for lock workers in collaboration with
the National Small Industries Corporation (NSIC). But he benefits of the same were not well availed of
properly by the village artisans. Most of the village artisans and assembling units are not registered with
the association as members.

• DISTRICT INDUSTRIES CENTRE (DINDIGUL)

The DIC is responsible for the following functions:

a) Issuance of permanent SSI certificate to the industries in the cluster SME’s.

b) Implementation of the Government sponsored schemes like subsidies of Khadi and Village
Industries Commission (KVIC), Margin Money Assistance Scheme and Prime Minister's Rojgar
Yojana Scheme (PMRY) etc.
c) It acts as a nodal agency for the Development of the Dindigul Lock Cluster.

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 DINDIGUL LOCK CLUSTER

• INSTITUTE OF TOOL ENGINEERING (DINDIGUL)

The institute conducts a vocational course awarding a Diploma in Tool Engineering Technology, which
has a course-duration of 3 years. This course helps in providing skilled entrepreneurs to the lock industry.

OTHER INSTITUTIONS
• UNIDO INTERNATIONAL CENTER FOR ADVANCEMENT OF MANUFACTURING
TECHNOLOGY (ICAMT), BANGALORE

The UNIDO-ICAMT has implemented a national programme for the development of the Indian lock
industries. An agreement to this effect was made on 21.09.2001 at UNIDO head quarters in Vienna
between the Development Commissioner of Small Scale Industries, Government of India and UNIDO.

The programme's objective is to strengthen the competitiveness of the lock industry and thereby increase
its market share in the world. This will be done through enhancing the manufacturing capacities and,
strengthening the technological and market development capabilities of the SMEs involved in lock
making. The planned duration of this project is 2 years and the project cost is Rs.5.7 crores.
The partners for the project are:

Development Commissioner Small Scale Industries (DC-SSI)

Department of Industrial Policy and Promotion, Government of India
The State Governments of Uttar Pradesh and Tamil Nadu
The Lock Industries Associations like the All India Lock Manufacturers Association and Aligarh
Lock Traders and Manufacturing Association.
The Dindigul Lock worker’s Industrial Co-operative Society
The Central Manufacturing Technology Institute (CMTI), Bangalore.
Banks like SIDBI, Canara Bank and State Bank of India.

ICAMT has also identified a need for training of the Dindigul Artisans to impart new skills and generate
awareness on new technologies in lock smithy.

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 DINDIGUL LOCK CLUSTER

4. THE CLUSTER MAP

Service
UNIDO/ICAMT/NSIC

Wholesale/Retail Lock manufacturing Units

traders/customers

Assembling Component Raw

Units suppliers material
suppliers

Govt. ITI Raw Materials Testing

Dindigul
Tool Institute Regional Testing Centre,
DIC Madurai
DIST. ASSN

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 DINDIGUL LOCK CLUSTER

5. SWOT ANALYSIS
STRENGTHS WEAKNESSES

• Complete manual assembling with each • Poor market linkages

lock having it’s own unique key code • Absence of commonality of goal.
• Easily availability of skilled labour. • Using low level technology
• The Dindigul Lock Worker’s Industrial • Lack of product branding
Co-operative Society Ltd. Is a strong
actor and a nodal agency to promote
infrastructural development & skill
upgradation amongst craftsmen of the
cluster.

OPPORTUNITIES THREATS

• Sub contraction job from large units • Entry of multinational in domestic

• Big scope in manufacturing of special market e.g. (China Locks)
purpose locks • There is no separate R&D institution for
• Huge Untapped markets potential introducing new models & types.

6. VISION FOR THE CLUSTER

"The Dindigul lock cluster will provide high quality locks to cater to the domestic and export markets by
adopting the latest art of technology by 2003"

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 DINDIGUL LOCK CLUSTER

7. ACTION PLAN
ACTION PLAN IMPLEMENTING DURATION
AGENCY
Labour skill up gradation training UNIDO/ICAMT/NSIC/DICO 27/12/2001 TO 27/02/2002 (2 months)
programme

Participation in the trade fair UNIDO/ICAMT/DICO 7 Days Rs.50000.

INTEC 02 at Kovai

To conduct awareness meetings DICO/CDA 3/2002 to 4/2002

for the formation of cluster
Rs.2000
Formation of working committee CDA/DICO 5/2002 TO 6/2002 2 (2months)
amongst the cluster actors

Formation of a review committee CDA/DICO 7/2002 TO 8/2002 (2 months)

Conduct Market Survey DICO/CED/SIPPO 9/2002 (One month)

ICAMT/UNIDO
Rs.50, 000
Technology up gradation for the ICAMT/DICO/CDA/UNIDO 10/2002 TO 12/2002
locks of existing type/ models
and skill up gradation for the Rs10 lacs
workers.

Common facility center tool UNIDO/ICAMT/DICO/CDA 1/2003 TO 6/2003 (6 Months)

room dies & equipments for new
types of locks Rs25 lacs
.
Documentation of the ICAMT/DICO 7/2003 TO 8/2003 (2 months)
manufacturing process.
Rs50, 000
R&D for new types of locks. ICAMT/DICO 9/2003 TO 12/03

Rs10 lacs

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 DINDIGUL LOCK CLUSTER

A Three Level Training Programme

Level-I: Hands on training on existing Lock-smithy practices at Dindigul

Expected Period: 26 days from 27th December 2001 to 26th January 2002.

Level-II: Hands on training on key coding techniques. Initiating operation of key milling machine
at Dindigul
Expected Period:5 days from 1st to 6th February 2002.

Level-III: Theoretical and hands on training in advanced lock making processes through NSIC,
Aligarh and Lock Manufacturing Units at Aligarh
Expected Period: 12 days from 11th – 26th February 2002.

Marketing Efforts

The marketing for Dindigul locks needs a greater thrust. The Dindigul Lock Worker’s Industrial Co-
operative Society Ltd. has its own website named www.dicolock.com. The website contains products
catalogues and contact details.

The society is also participating in seminars and exhibitions, but there is a need to give more publicity to
the Dindigul brand so that a bigger market share is realised. UNIDO -ICAMT is sponsoring the DICO in
the INTEC 2002 Industrial Trade Fair, which is to be held at Coimbatore from 21-27 January 2002 so that
they can attract more customers and publicity.

More vigorous marketing strategy is also under consideration to tap on the export potential of Dindigul
locks by the various marketing channels and participation in international exhibitions.

Technology Upgradation under Consideration for the Dindigul Lock Sector

• Required Assembly fixtures of padlocks which are fast moving in design and supply

• Small size CNC milling machine for cast components – design and supply

• Sheet-metal bending fixture-design and supply

• Documentation for the existing locks useful for manufacturing through using CAD/CAM hardware
and software

• Standardisation of products and components

• Improved finishing process and set up 9

 DINDIGUL LOCK CLUSTER

• Shackle bending machine and fixture – design and supply

• Training gadgets and materials, CD ROMS etc

• Computerised system for stores, inventory, sales and accounting

• Standard work-room facilities

• Material testing facilities

• Automatic technology for removing sharp corners from the pressure die cast components.

• Heavy duty milling machine for providing longitudinal grooves on more than one key at a time

10