> I just went through solr wiki page
> for clustering. But i am not getting what
> is the benefit of using clustering. Can anyone tell me what
> is actually
> clusering and what its use in indexing and searching.
> does it effect search results??
> Please reply

It is for search result clustering. Try the demo with the query word jaguar.  
http://search.carrot2.org/stable/search

It generates clusters and labels. (on the left)

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