Cluster Profile
1 Name Of Cluster Bangalore Machine Tool
2 Place Bangalore
3 District Bangalore
4 State Karnataka
5 No of firms (by type) 57 
6 No. of workers 26000(indirect) 10000(direct) 
7 Turnover(Rs in Million's) 5900 Million
8 Associations in cluster The Indian Machine Tool Manufacturers Association (IMTMA)
Karnataka Small Scale Industries Association (KASSIA)
Peenya Industries Association (PIA)
9 Major products Very large
Large and Medium
Small
10 Specific and relevant technical institutions (R&D, Testing Lab accredited) NA
11 Major markets Very Large Large and Medium, Small
12 Major problems/prospects It is an industry which seems to be driven by the automotive industry.
Coupled with this, imports of machine tools are expected to increase over the next 2-3 years.
This will be devastating for the cluster as well as for the industry.
There is likely to be a shake-out in the industry and in the cluster in the next 2-3 years. In the process, a consolidation will take place with MTMs and Supplier and Vendor firms either shaping up or shipping out. Many firms will not be able to survive or will try and shift to other business lines.
Weak/Inadequate linkages between MTMs and Suppliers and Vendors; the relationships do not seem to be strong and complementary by and large. This is compounded by a lack of trust among stake-holders and especially among core enterprises
Inadequate technology linkages between Technical Institutions and core enterprises and between MTMs and Suppliers and Vendors Weak and fractured Local Governance; (this is a vital ingredient for a successful and thriving cluster)
Finance appears to be a constraint both for working capital as well as for investment for R&D, technology upgrading especially for most Supplier and Vendor firms
There appears to be an absence of vitality and dynamism in the cluster
The linkages with markets and flows of market information and market intelligence appear to be weak across the cluster.
13 Data source and updated on DSR by UNIDO CDP year 1999