MICRO,SMALL AND MEDIUM ENTERPRISES IN ERODE DISTRICT


Erode district is one among the industrialized district in Tamilnadu and it is fifth among the districts in Tamilnadu as far as MSME concerned. There are 18011 registered SSI/MSME Enterprises as on 31.03.2011 in the district. Cotton Textiles in this District dominate the district at present. It accounts for 41.9% of the registered MSME enterprises in the district. Next comes to Hosiery & Readymade Garments industry, which is accounting for 21.9% followed by food products with 17.2%

MSME’s 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.

 

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 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 MSME Enterprise Units in Erode District - as on 31.03.2011

Sl.No.

Ind. Code

Name of Industry

Registered SSI/MSME
Units as on 31.03.2011

No. of
units

% to the
total

1.

20-21

Food Products

1424

17.2

2.

22

Beverages

38

                  0.4

3.

23

Cotton Textiles

3467

41.9

4.

24

Wool, Silk & Synthetic Fibre

61

0.7

5.

25

Jute, Hemp and Mesta Products

21

0.25

6.

26

Hosiery & Readymade Garments

1814

21.9

7.

27

Wooe and Wood Products

843

                 10.2

8.

28

Paper & Paper Products

214

2.5

9.

29

Leather & Leather Products

289

3.4

10.

30

Rubber & Rubber Products

18

0.2

11.

31

Chemical & Chemical Products

6

0.07

12.

32

Non-Metallic/ Mineral Products

18

0.2

13.

33-35

Basic Metails, Metal Products etc

26

0.3

14.

36

Electrical Machinery & Apparatus

--

--

15.

37

Transport Equipment & Parts

-

--

16.

38

Other Mfg. Industries

22

0.2

Total

8261

 

 

Small Scale Service & Business Enterprises

Like the MSME Service sector has also grown considerably in this district. There are 12683 Service Enterprises as on 31.03.2011 in this District. Group wise number of enterprises in this segment is given below.

MSME Service Enterprises as on 31.03.2011

Group Code (Two Digit)

Group Name

Number of Units

 50

Digging of Bore-wells

--

 51

Painting & Decorating

848

 74

Storage & Ware Housing

6

 76

Communication

1872

 82 

Data Processing

1998

 93 

Medical & Health Service

82

 96

Personal Services

2988

 97

Repair & Servicing

4889

 99

Services not elsewhere classified

--

                                                                   Total

12683

DISPERSAL OF MSME enterprises

The notable feature of the MSME sector is its easy dispersal in wide areas. In Erode district, MSME Enterprises 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 38% share of MSME Enterprises, the surrounding taluks Perundurai, Bhavani is having the share of 19%, 11.3%, respectively. It can be seen that all of the above three taluks namely, Erode, Perundurai, Bhavani. There altogether having a share of 68% of the total MSME enterprises. The remaining three taluks are having only 32%. The blocks like Thalavadi and Bhavani Sagar are having the MSME enterprises less than 1%.

INVESTMENT LEVEL & EMPLOYMENT LEVEL

The total investment in plant & machinery in the MSME sector in Erode District is Rs.58997.54 lakhs as on 31.3.2011. The average investment in plant & machinery per Enterprises is estimated around 3.2 lakhs. The total employment generated directly by the registered MSME Enterprises in this district is 73919 persons, which works out an average of 3 persons, per unit during 2010 - 2011.

Employment Generated & Investment in MSME Sector
as on 31.03.2011 - Taluk Level

Sl.No

Name of the Taluk

Number of
E
nterprises

Investment in
Plant and
Machinery As on
31.03.2011

Rs. in lakh

Employment

% to the
total

 

1

 

Erode

8024

32131.81

32192

38%

 

2

 

Perundurai

4123

8326.80

18491

19%

 

3

 

Gobi

2234

5961.60

8932

10.6%

 

4

 

Sathyamangalam

1244

3842.14

4276

5.9%

 

5

 

Kangayam upto 17.04.2009

1044

2987.22

2912

-

 

6

 

Bhavani

2386

4263.79

4432

11.3

 

7

 

Dharapuram upto 17.04.2009

1889

1484.18

2684

-

 

Total

 

20944

58997.54

73919

 

 

From the above table it can be seen that Erode Taluk is leading among other taluks in terms of number of enterprises, investment level and employment. Erode Taluk is having 38% of registered MSME units with 54% of total investment level and 43% of employment in the district. It is due to the concentration of cotton textiles & readymade garments enterprises in this taluk and their easy accessibility to the market. Next to Erode, Perundurai Taluk is having 4123 number of registered MSME enterprises with 8326.80 lakhs in investment in plant & machinery and providing employment to18491 person. Bhavani Taluk is having 2386 enterprises, with investment of 4263.79 Lakhs and providing employment to 4432 persons.  In Gobi Taluk 2234 units are providing employment to 8932 persons with investment of 5961.60 Lakhs.   Sathyamangalam Taluk is having 1244 registered MSME enterprises, which is the lowest number of enterprises in the district.

LARGE SCALE INDUSTRIES

There are 64 Large Scale Industries in this district. Most of the Enterprises are cotton textiles. 31 enterprises are textile industries. The following table shows the number of large scale enterprises product wise.

 

No. of Large Scale Enterprises in Erode District

Sl.No

Description of Activity

No of Units

1

Textile Industries

31

2

Engineering Industries

  3

3

Machinery manufactures

--

4

Machinery & Equipment

--

5

Cement & Allied Industries

--

6

Diamond Cutting & Polishing

--

7

Electrical & Electronics

--

8

Sugar Mills

4

9

Oil Extraction

3

10

Distilleries

--

11

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

23

Total

64

          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 8 such industrial cooperatives with a total membership of 565 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 enterprises and marketing support by the industrial cooperative wing.

Among 8 Industrial cooperative societies 4 are engaged in production activities such as Engineering, Coir products, Jute products, Textile products, Processing, Printing and 3 are engaged in Auto Transport service sector. One industrial cooperative society is engaged in printing industry service sector.

COTTAGE INDUSTRIES

Cottage Industries are providing large scale employment with low cost investment. In Erode District there is 7605 Enterprise registered under cottage industries as on 31.03.2011 and they are providing employment to 12974 persons. Among them the major type of industries are given below.

Major Cottage Industries as on 31.03.2011.

Sl.No

Name of the Cottage Industries

No. of Units

Employment

1

Tailoring units

2629

4714

2

Weaving of Cotton, Wool, Jute and Silk

1875

2875

3

Leather Products

200

217

4

Coir & Coir Products

864

866

5

Gem cutting

314

326

6

Pickle and Mixture making

407

1412

7

Coconut leaf Thatching

420

430

8

Puffed Rice

206

662

9

Wood Industry

216

848

10

Dehydrated / Dried fruits & vegetables

184

242

11

Pottery

126

185

12

Bamboo Baskets

164

197

 

TOTAL

7605

12974

 Handicraft Units

Like cottage industries, handicrafts Enterprises are also providing employment to the rural artisans. In Erode District there are 5894 Enterprises providing employment to 9734 person. The major types of activities are furnished in the table.

 

Major Handicrafts Units As on 31.03.2011

 

Sl.No

Name of the Handicrafts
Activity

No.of Units

Employment

1

Readymade Garments

2393

2433

2

Handloom Cloth

1301

2132

3

Leather

212

939

4

Agarbathi

214

421

5

Carpets

1201

1657

6

Palm Leaf Articles

104

275

7

Increase Perfumery

117

206

8

Artistic Printing

24

142

9

Jewellary

15

124

10

Bamboo, Cane etc.

92

198

11

Hand Printing

19

247

12

Wood Work

98

196

13

Embroidering Works

104

764

 

TOTAL

5894

9734

 

MUNICIPALITY (URBAN)

BLOCK – WISE CONCENTRATION OF SSI/MSME enterprises IN ERODE DISTRICT AS ON 31.03.2011

Sl. No.

Name of Industry

Erode (M)

Bhavani (M)

Gobi (M)

Sathy (M)

Bhavani Sagar (M)

TOTAL

20

- 21

Food Products

826

384

132

82

-

1424

22

Beverages

22

8

6

2

-

38

23

Cotton Textiles

2188

689

365

106

116

3464

24

Wool, Silk & Synthetic Fibre

16

5

12

18

5

61

25

Jute, Hemp and Mesta Products.

9

6

3

-

3

21

26

Hosiery & Readymade Garments

806

481

379

134

14

1814

27

Wood & Wood Products

312

314

74

2

12

843

28

Paper & Paper Products

102

86

9

12

5

214

29

Leather & Leather Products

124

87

28

36

14

289

30

Rubber & Rubber Products

9

2

3

2

2

18

31

Chemical & Chemical Products

5

1

-

-

-

6

32

Non-Metallic / Mineral Products

8

3

3

2

2

18

33-35

Basic Metals, Metal Products etc

16

4

2

2

2

26

36

Electrical Machinery & Apparatus

-

-

-

-

--

-

37

Transport Equipment & Parts

-

-

-

-

-

-

38

Other Mfg. Industries

16

2

2

2

-

22

  


BLOCK – WISE CONCENTRATION OF MSME enterprises IN ERODE DISTRICT AS ON 31.03.2011

Sl.

No.

Name of the Industry

Erode

Moda Kurichi

Kodu Mudi

Perundurai

Chennimalai

Gobi

 

Nambiyur

 

T.N. Palayam

Sathy

 

Bhavani Sagar

Thalavadi

 

Bhavani

 

Ammapet

 

Anthiyur

 

TOTAL

20-21

Food Products

262

173

102

312

318

315

121

129

124

162

42

37

32

83

2212

22

Beverages

26

6

2

4

8

12

5

7

9

12

2

21

18

6

138

23

Cotton Textiles

507

21

12

802

88

116

9

27

8

12

3

106

209

106

2026

24

Wool, Silk & Synthetic Fibre

31

0

0

0

0

12

0

0

0

0

0

23

0

0

66

25

Jute, Hemp and Mesta Products.

28

2

4

19

2

6

0

3

8

0

0

11

0

8

91

26

Hosiery & Readymade Garments

431

6

0

750

3

8

3

3

8

4

2

96

82

73

1469

27

Wood & Wood Products

269

8

4

262

12

18

8

2

4

3

4

9

12

15

630

28

Paper & Paper Products

462

24

19

12

28

42

19

22

11

87

19

22

35

412

1214

29

Leather & Leather Products

 

194

12

13

33

8

14

21

18

7

16

15

150

3

12

516

30

Rubber & Rubber Products

6

2

6

2

8

4

3

2

1

4

12

11

4

18

83

31

Chemical & Chemical Products

3

6

2

1

1

3

2

12

14

0

0

0

0

0

44

32

Non-Metallic / Mineral Products

6

3

1

3

2

1

1

0

0

0

0

4

0

0

21

33-35

Basic Metals, Metal Products etc

6

2

1

1

1

1

1

1

1

0

0

2

1

1

19

36

Electrical Machinery & Apparatus

684

75

4

250

50

75

20

55

65

25

15

498

75

26

1917

37

Transport Equipment & Parts

56

2

4

55

17

46

2

6

5

4

2

30

24

20

273

38

Other Mfg. Industries

389

265

57

298

75

158

85

55

125

26

17

279

127

67

2023