India’s micro, small and medium enterprise (MSME) sector stands at a crossroads as industries quickly undertake superior applied sciences, like robotics and automation, whereas additionally transitioning to cleaner fuels and applied sciences to chop greenhouse fuel emissions.
MSMEs, which account for 35% of the country’s manufacturing output, are a basic a part of this transition. Within the auto business, authentic gear producers (OEMs) are already encouraging their provide chain companions, significantly tier-1 and tier-2 suppliers, to undertake inexperienced manufacturing practices. These embody vitality effectivity, lean manufacturing and accountable waste administration. To stay aggressive and turn out to be most well-liked companions in low-carbon development, MSMEs should spend money on sustainable practices like upgrading to energy-efficient gear and adhering to environmental, social and governance (ESG) parameters.
MSMEs and the Low Carbon Skilling Problem
MSMEs face distinct challenges that have to be addressed to make sure a simply and equitable transition for each companies and employees. A vital requirement is the skilling of employees in low carbon applied sciences and new inexperienced alternatives. For instance, because the auto business shifts from inner combustion engine (ICE) elements, the demand for conventional foundry operations will decline. The shift to EV manufacturing requires employees to have precision expertise like machining high-grade supplies and a capability to adapt to new design parameters.
Ramesh Varadhan, Plant Head at Microtech Engineers in Chennai, aptly sums up the present challenges within the ecosystem, “Our store flooring employees principally study on the job with out formal industrial coaching. Whereas we’ve got carried out robotics, additional coaching is important to totally optimize its use.”
Limitations to Conventional Coaching
Regardless of the rising want for upskilling, typical coaching will not be all the time designed to swimsuit the particular wants of MSME employees.
Many employees, employed on short-term contracts, lack formal greater training and industrial coaching. In accordance with the Periodic Labour Pressure Survey, 71% of workers in non-agricultural sectors lack formal contracts. Job insecurity, demanding work schedules and restricted alternatives for profession development discourage employees from studying new strategies.
Certification programs are sometimes unsuitable for employees juggling 12-hour shifts. For instance, a Pc Numeric Managed (CNC) machinist course requires 510 hours of classroom coaching — a dedication that many employees can’t afford. Moreover, these packages not often embody inexperienced expertise equivalent to vitality effectivity or course of optimization, that are essential for assembly buyer calls for for low-carbon manufacturing.
Lastly, excessive employee turnover and slim revenue margins deter MSME homeowners from investing in prolonged coaching packages. It additionally makes them cautious of relieving their employees to go and attend exterior coaching.
Want for Innovation in Coaching Applications
Revolutionary coaching strategies, together with digital and interactive instruments like digital actuality (VR) may also help deal with a few of these challenges by making it simpler for employees to entry upskilling alternatives. As a part of its Resilient Inclusive and Sustainable Enterprise (RISE) initiative, WRI India helped manage a VR-based simulation coaching session within the Coimbatore auto cluster in October 2024.
The VR device simulation provided a versatile and hands-on technique to coach employees with minimal disruption of each day operations. It demonstrated how adjusting technical parameters like move, strain and frequency in industrial gear can result in important vitality financial savings. The partaking coaching train raised consciousness about normal energy-efficient practices and allowed employees to boost their expertise in a digital interactive setting.
The VR-based coaching provided experiential studying tailor-made to particular job roles and necessities. It additionally enabled employees to achieve technical information and insights into environment friendly gear operations. This system simulated real-world challenges, offering sensible expertise with out the added price of intensive infrastructure.
Over the course of a single day, contributors engaged with bite-sized modules that coated vitality conservation in key industrial utilities like motors, followers, pumps and air compressors. This coaching improved their technical information and helped them undertake normal working practices that may contribute to their organizations’ sustainability targets.
Mr. Varadhan concluded, “Equipping employees with digital expertise can considerably scale back cycle time (time taken to finish a manufacturing course of), reduce waste and improve product high quality, driving better effectivity and digitalization inside MSME operations. Digital coaching instruments like VR know-how can play a key function in attaining this.”
Scaling the Affect
To copy the success of such initiatives, collaboration between industrial associations, tutorial establishments, OEMs, and authorities and skilling companies is important. With industries evolving quickly, coaching curricula have to be tailor-made to sectoral wants and combine inexperienced expertise and superior applied sciences. It’s also important to make sure that the trainings are accessible to employees with restricted formal training.
VR-based coaching classes could be held throughout lean manufacturing seasons or off-hours at MSME premises to make sure easy accessibility for employees. Given the skinny revenue margins of MSMEs, monetary incentives equivalent to subsidies or low-interest loans may also help these enterprises implement coaching packages and encourage employees to upskill.
India is at a pivotal second in its industrial evolution and low-carbon transition. By embracing versatile and scalable options like VR-based coaching, we are able to be sure that MSME employees are geared up to thrive in a altering industrial panorama.