Micro, Small & Medium Enterprises plays a vital role in socio economic development of the country. It produces and supplies quality products & services utilizing various resources, satisfies the increasing need of people, creates ample employment opportunities & contributes in bringing equilibrium of regional imbalances. At the same time, it earns substantial national income for the country through by catering the needs of the domestic as well as export market. Considering ‘Globalization and Free Trade at national and International level, competitiveness is the key area of concern not only for progress but also for survival of Micro, Small and Medium enterprises (MSMEs).

Cosmetic Industry is one of the rapid growing sectors due to increasing need of cosmetic products both for beautification as well as curative purposes. People from all spheres of life & location, are consuming the cosmetic products and to cater their need, there are manufacturers of various levels comprising of Cottage Industries to Multinational Companies.

A cluster of Cosmetic & Herbal Cosmetic Industries is functioning at Vasai & Western suburbs of Mumbai, which was identified by the Ministry of MSME, Govt. of India for an in-depth study and focus on the problems & prospects and to draw an appropriate action plan for the development. The objective of this study was to form a Cluster inorder to improve the productivity, competitiveness and capacity building of the Industries functioning in Cluster.

The study has been conducted and the detailed Diagnosis Study Report was prepared. The report suggested several interventions for formation of the cluster. The diagnostic report was duly validated by the Cluster Members and an Action Plan was prepared.