SMALL SCALE INDUSTRIES IN ERODE DISTRICT

Erode district is one among the industrialised district in Tamilnadu and it is fifth among the districts in Tamilnadu as far as Small Scale Industries concerned. There are 25,637 registered SSI units as on 31.3.2003 in the district. Cotton Textiles in this District dominate the district at present. It accounts for 20.2% of the registered SSI units in the district. Next comes to Hosiery & Readymade Garments industry, which is accounting for 18.7% followed by food products with 11.4%

Small Scale Industries are providing large-scale employment next to Agriculture in this district. It have played a vital role in the districts economy by providing large scale employment opportunities at relatively low capital cost, a wide entrepreneurial base, easy dispersal of industries in rural areas and concentration of certain industrial groups at specific areas.

The relative position of the district in the State in terms of Registered SSI units as on 31.3.2003 is given below.

The district stands first for the highest number of units in

  1. Beverages
  2. Jute, Hemp & Mesta Textile Products

It stands second in the following sectors.

  1. Food Products
  2. Cotton Textiles

It stands fourth in

  1. Basic Metal Products

Area of Concentration

The following table shows that different type of industries and their area of concentration. It may be seen that food products are concentrated at Erode, Perundurai & Kangayam, beverages are concentrated in all the 3 blocks of Erode Taluk namely, Modakurichi, Erode & Kodumudi. Cotton Textiles and Readymade Garments are concentrate in Erode Taluk. Erode Taluk is also having the maximum number of industries in Leather & Leather Products, Non metallic mineral products apart from Food Products. Next to Erode, Perundurai stands second in Food Products, Cotton Textiles, Chemical & Chemical Products and Transport Equipments.

 


Concentration of SSI Units in Erode District - as on 31.3.2003

Ind. Code

Name of Industry

No.of Regd SSI Units
as on 31.3.2000

Registered SSI
Units as on 31.3.2003

No. of
units

% to the
total

No. of
units

% to the
total

20-21

Food Products

2865

12.0

2933

11.4

22

Beverages

645

2.7

681

2.7

23

Cotton Textiles

4928

20.6

5156

20.2

24

Wool, Silk & Synthetic Fibre

220

0.9

242

0.9

25

Jute, Hemp and Mesta Products

118

0.5

136

0.5

26

Hosiery & Readymade Garments

4168

17.4

4799

18.7

27

Wooe and Wood Products

686

2.9

940

3.7

28

Paper & Paper Products

945

4.0

982

3.8

29

Leather & Leather Products

829

3.5

858

3.3

30

Rubber & Rubber Products

328

1.4

358

1.4

31

Chemical & Chemical Products

779

3.2

815

3.2

32

Non-Metallic/ Mineral Products

624

2.6

663

2.6

33-35

Basic Metails, Metal Products etc

1877

7.8

1893

7.4

36

Electrical Machinery & Apparatus

793

3.3

929

3.6

37

Transport Equipment & Parts

1008

4.2

1034

4.0

38

Other Mfg. Industries

3105

13.0

3218

12.6

Total

23918

100.0

25637

100.0

 

 

Small Scale Service & Business Enterprises

Like the SSI sector the SSSBE sector has also grown considerably in this district. There are 8073 SSSBE units as on 31.3.2003 in this District. Group wise number of units in this segment are given below.


SSSBE Units as on 31.03.2003

Group Code (Two Digit)

Group Name

Number of Units

 

50

 

Digging of Bore-wells

--

 

51

 

Painting & Decorating

180

 

74

 

Storage & Ware Housing

42

 

76

 

Communication

90

 

82

 

Data Processing

521

 

93

 

Medical & Health Service

--

 

96

 

Personal Services

760

 

97

 

Repair & Servicing

4537

 

99

 

Services not elsewhere classified

1943

Total

8073

 

DISPERSAL OF SSI UNITS

The notable feature of the SSI sector is its easy dispersal in wide areas. In Erode district, SSI units are spread all over the district even though concentration of the units can be seen in some of the places. While Erode Taluk alone having 41.2% share of SSI units, the surrounding taluks Perundurai, Bhavani & Kangayam is having the share of 16.7%, 10.9%, & 10.2% respectively. It can be seen that all of the above four taluks namely, Erode, Perundurai, Bhavani & Kangayam altogether having a share of 79% of the total SSI units. The remaining three taluks are having only 21%. The blocks like Thalavadi, Bhavani Sagar and Kundadam are having the SSI units less than 1% i.e 0.5%, 0.9% & 0.9% respectively.


INVESTMENT LEVEL & EMPLOYMENT LEVEL

The total investment in plant & machinery in the SSI sector in Erode District is Rs.82054.80 lakhs as on 31.3.2003. The average investment in plant & machinery per unit is estimated around 3.2 lakhs. The total employment generated directly by the registered SSI units in this district is 104483 persons, which works out an average of 4 persons, per unit during 2002 - 2003.

 

Employment Generated & Investment in SSI Sector
As on 31.3.2003 - Taluk Level

 

Sl.No

Name of the Taluk

Number of
Units

Investment in
Plant and
Machinery As on
31.3.2003

Rs.in lakh

Employment

 

1

 

Erode

10563

36139.83

42293

 

2

 

Perundurai

4280

11320.60

21305

 

3

 

Gobi

2173

5564.60

8628

 

4

 

Sathyamangalam

1336

3415.11

4971

 

5

 

Kangayam

2617

16750.19

13207

 

6

 

Bhavani

2785

4878.46

3808

 

7

 

Dharapuram

1883

3986.01

10271

 

Total

 

25637

82054.80

104483

 


 

From the above table it can be seen that Erode Taluk is leading among other taluks in terms of number of units, investment level and employment. Erode Taluk is having 41.2% of registered SSI units with 44% of total investment level and 40.5% of employment in the district. It is due to the concentration of cotton textiles & readymade garments units in this taluk and their easy accessibility to the market. Next to Erode, Perundurai Taluk is having 4280 number of registered SSI units with 11320.60 lakhs in investment in plant & machinery and providing employment to 21305 person. Bhavani Taluk is having 2785 units, with investment of 4878.46 Lakhs and providing employment to 3808 persons. Kangayam Taluk ishaving 2617 Units and the average investment in plant & machinery is about 6.4 lakhs per unit which is the highest among the other taluks in the district. In Gobi Taluk 2173 units are providing employment to 8628 persons with investment of 5564.60 Lakhs.  In Dharapuram taluk 1883 SSI Units are providing employment to 10271 persons at an average of 5 persons per unit which is highest among other taluks. Sathyamangalam Taluk is having 1336 registered SSI units, which represents 5.2% of the district, is the lowest number of units in the district.

LARGE SCALE INDUSTRIES

There are 70 Large Scale Industries in this district. Most of the units are cotton textiles. 57 units are textile industries. The following table shows the number of large scale units product wise.

No.of Large Scale Units in Erode District

Sl.No

Description of Activity

No of Units

1

Textile Industries

57

2

Engineering Industries

3

3

Machinery manufactures

--

4

Machinery & Equipment

--

5

Cement & Allied Industries

--

6

Diamond Cutting & Polishing

--

7

Electrical & Electronics

--

8

Sugar Mills

2

9

Oil Extraction

1

10

Distilleries

--

11

Others (Food-2, Chem-3, Paper-2)

7

Total

70

 

 


Among the Large Scale units, the Textile Industry is the traditional one. It is mostly spinning oriented. Out of the 57 units, 38 units are spinning oriented, one unit is a composite unit. 7 units are engaged in Textile processing and two units are coming under knitting activities. The remaining industries are chemical product 3 Nos, Engineering Industries 3 Nos, Sugar mills 2 Nos, Food Products Industry 3 Nos and Paper Products 2 No.

Industrial Cooperative Sector

Various industrial cooperatives are promoted by the Industries department in this district to provide employment and to up-left the economic condition of the poor. At present there are 15 such industrial cooperatives with a total membership of 1690 numbers operating in this district. Persons engaged in particular activities are brought under one roof and registered as cooperative societies by providing share capital loans, procuring machineries, raw materials required for the units and marketing support by the industrial cooperative wing.

Among the 15 Industrial cooperative societies 12 are engaged in production activities such as Engineering, Coir products, Jute products, Textile products, Processing, Printing & Chamber Bricks and 2 are engaged in Auto Transport service sector. One industrial cooperative society is engaged in Polymer industry service sector.

COTTAGE INDUSTRIES

Cottage Industries are providing large scale employment with low cost investment. In Erode District there are 5915 units registered under cottage industries as on 31.03.2003 and they are providing employment to 6018 persons. Among them the major type of industries are given below.

Major Cottage Industries as on 31.03.2003.

 

Sl.No

Name of the Cottage Industries

No.of Units

Employment

1

Tailoring units

2284

2288

2

Weaving of Cotton, Wool, Jute and Silk

963

963

3

Leather Products

809

810

4

Coir & Coir Products

302

303

5

Gem cutting

218

281

6

Pickle and Mixture making

317

320

7

Bidi Manufacturing

121

135

8

Coconut leaf Thatching

319

320

9

Puffed Rice

110

120

10

Wood Industry

209

213

11

Dehydrated / Dried fruits & vegetables

88

90

12

Pottery

107

107

13

Bamboo Baskets

68

68

 


 

Handicraft Units

Like cottage industries, handicraft units are also providing employment to the rural artisans. In Erode District there are 8222 units providing employment to 8300 person. The major types of activities are furnished in the table.

Major Handicrafts Units As on 31.3.2003

 

Sl.No

Name of the Handicrafts
Activity

No.of Units

Employment

1

Readymade Garments

1993

1999

2

Handloom Cloth

1128

1132

3

Leather

913

940

4

Agarbathi

401

420

5

Carpets

1659

1659

6

Palm Leaf Articles

273

273

7

Incease Perfumery

201

201

8

Artistic Printing

147

147

9

Jewellary

124

124

10

Bamboo, Cane etc.

196

198

11

Hand Printing

240

247

12

Wood Work

196

196

13

Emboroiding Works

751

764

 


MUNICIPALITY (URBAN)

BLOCK – WISE CONCENTRATION OF SSI UNITS IN ERODE DISTRICT

AS ON 31.03.2003

             

Sl.

No.

Name of Industry

Erode (M)

Bhavani (M)

Dharapuram (M)

Gobi (M)

Sathy (M)

Bhavani Sagar (M)

20

- 21

Food Products

359

113

67

47

93

6

22

Beverages

21

15

10

7

3

-

23

Cotton Textiles

1334

87

166

28

13

3

24

Wool, Silk & Synthetic Fibre

9

5

6

4

6

-

25

Jute, Hemp and Mesta Products.

8

6

2

5

3

-

26

Hosiery & Readymade Garments

611

203

182

134

39

6

27

Wood & Wood Products

10

98

17

41

43

8

28

Paper & Paper Products

24

31

31

9

35

3

29

Leather & Leather Products

84

27

27

15

25

5

30

Rubber & Rubber Products

12

13

6

5

5

-

31

Chemical & Chemical Products

63

28

19

22

15

3

32

Non-Metallic / Mineral Products

98

24

37

21

29

3

33-35

Basic Metals, Metal Products etc

36

35

29

19

39

5

36

Electrical Machinery & Apparatus

33

23

21

18

20

5

37

Transport Equipment & Parts

86

37

26

23

25

6

38

Other Mfg. Industries

401

69

169

66

46

9

 

Total

 

3189

814

815

464

439

62

  


BLOCK – WISE CONCENTRATION OF SSI UNITS IN ERODE DISTRICT AS ON 31.03.2003

 

Sl.

No.

Name of the Industry

Erode

Moda

Kurichi

Kodu

Mudi

Perun

Durai

Chenni

malai

Uthu

kuli

Gobi

Nambiyur

T.N.

Palayam

Sathy

20-21

Food Products

332

212

207

304

99

163

85

23

70

47

22

Beverages

59

139

69

57

13

5

21

13

-

18

23

Cotton Textiles

981

303

283

481

316

141

69

142

90

33

24

Wool, Silk & Synthetic Fibre

33

3

5

6

9

8

22

18

8

10

25

Jute, Hemp and Mesta Products.

2

5

8

9

-

3

6

3

11

-

26

Hosiery & Readymade Garments

402

806

748

112

114

228

178

19

28

144

27

Wood & Wood Products

12

29

30

29

19

26

30

20

26

22

28

Paper & Paper Products

57

121

62

61

63

61

23

10

29

16

29

Leather & Leather Products

64

29

17

73

39

66

15

41

30

13

30

Rubber & Rubber Products

9

42

25

13

29

16

6

27

35

5

31

Chemical & Chemical Products

49

23

19

73

113

91

10

18

17

19

32

Non-Metallic / Mineral Products

19

48

65

23

18

21

17

13

30

32

33-35

Basic Metals, Metal Products etc

151

208

251

204

54

104

20

34

16

37

36

Electrical Machinery & Apparatus

40

77

73

91

56

37

15

27

50

10

37

Transport Equipment & Parts

23

23

55

161

51

86

18

36

70

29

38

Other Mfg. Industries

312

586

258

254

158

122

24

99

97

38

TOTAL

2545

2654

2175

1951

1151

1178

543

543

607

473

 

 

                                                                                                                                                                                                                                                                      

BLOCK – WISE CONCENTRATION OF SSI UNITS IN ERODE DISTRICT AS ON 31.03.2003

 

Sl.

No.

Name of the Industry

Bhavani

Sagar

Thala

Vadi

Bhavani

Amma

pet

Anthi-

yur

Dhara-

puram

Kund-

Dam

Mulanur

Kanga-

yam

Vella-

koil

20-21

Food Products

36

20

78

39

92

24

30

33

233

121

22

Beverages

6

-

14

15

29

29

19

21

60

38

23

Cotton Textiles

48

13

163

142

148

14

24

29

69

36

24

Wool, Silk & Synthetic Fibre

5

9

4

15

17

13

-

-

27

-

25

Jute, Hemp and Mesta Products.

-

-

13

15

15

7

-

-

15

-

26

Hosiery & Readymade Garments

64

15

107

110

100

152

17

79

113

88

27

Wood & Wood Products

10

3

150

27

17

15

5

23

124

106

28

Paper & Paper Products

3

3

22

19

12

15

9

29

138

96

29

Leather & Leather Products

4

4

33

18

15

8

8

11

107

80

30

Rubber & Rubber Products

3

5

40

14

3

9

-

7

8

21

31

Chemical & Chemical Products

3

3

28

16

15

9

6

15

88

50

32

Non-Metallic / Mineral Products

2

3

25

9

13

12

8

17

25

51

33-35

Basic Metals, Metal Products etc

5

17

45

18

35

10

21

52

265

183

36

Electrical Machinery & Apparatus

4

6

39

10

11

25

13

42

117

66

37

Transport Equipment & Parts

13

12

45

19

27

20

31

26

59

27

38

Other Mfg. Industries

16

27

82

33

15

60

42

29

115

91

TOTAL

222

140

888

519

564

422

233

413

1563

1054