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GENERAL INDUSTRIAL CLIMATE
Dharmapuri is one among the industrially backward districts in the state. 11 of the 18 blocks of the district have been declared as industrially backward and 2 as industrially most backward blocks. The fact that 13 out of the total of 18 blocks in the district find place in the 'Backward' / 'Most-backward' list, itself speaks of the present status of the district in terms of industrial development. However, there are a number of large-scale units, which are concentrated in and around Hosur. This makes the Hosur taluk relatively developed than other parts of the district. There is vast imbalance among the blocks in terms of industrial development. Efforts are needed to ensure balanced growth of the entire district.
LARGE & MEDIUM SCALE INDUSTRIES
There were 112 Medium and Large-Scale industrial units in Dharmapuri district. Most of the units are located in Hosur taluk. A number of Engineering, textile, auto ancillary, agro-based units are functioning in the SIPCOT industrial complex located at Hosur.
Large granite deposit available in the district has helped the growth of granite polishing units in the district.
The favourable climate prevailing in the northern and eastern part of the district coupled with the nearby international airport at Bangalore, which is located just 40 k.m. from Hosur has assisted the growth of Floriculture units in this part of the district. 13 major floriculture farms are located in Hosur and Denkanikottai taluks.
Nine textile units in the large-scale sector were functioning in Dharmapuri and Hosur area in the district. Besides these, major Textile machinery manufacturing industries like Lakshmi auto looms, Lakshmi Ring Travelers are also located at Hosur.
Auto giants like the Ashok Layland, T.V.S. Suzuki are also located at Hosur. This helped the growth of auto ancillary units both in the large scale sector and Small scale sector.
Two Sugar mills are also located in the district one at Palacode and the other at Harur blocks.
A number of major mechanical, electrical and electronic units are functioning in Hosur.
SMALL SCALE INDUSTRIES
Dharmapuri district accounted for 2.7 % of the registered SSI units in Tamilnadu as on 31.3.2001. There were 9611 registered SSI units in the manufacturing sector and 3168 units in the servicing sector (SSSBE). More than 60 % of the units are engaged in manufacture of food products.
Dharmapuri being the major horticulture belt in the state, a number of fruit processing units especially mango pulp manufacturers are functioning in Kaveripattinam and Krishnagiri blocks. Extensive coconut plantations assist the growth of tiny coir units throughout the district. Huge granite reserves resulted in the growth of granite polishing units mainly in Krishnagiri and Hosur taluks.
GROWTH OF SSI UNITS SINCE 1990-91
There has been a 212 % growth in the number of SSI industries during the last decade as shown below.
Table No 5.1
Growth in the No. of Regd. SSI Units.
| Year |
No. of SSI Units |
| 1990-91 |
3082 |
| 2000-01 |
9611 |
|
- In Dharmapuri district, there were 9611 small scale manufacturing units and 3168 service enterprises (SSSBE) as on 31-3-2001.
- Out of the 9611 small scale manufacturing units, 61.7% are engaged in Food products. There is concentration of rice mills and tamarind processing & Cold Storage units. Nearly 50 % of the food processing units are located in Hosur and Dharmapuri itself.
- 10.6% are engaged in the manufacture of wooden products.
- 8.4 % of the units are cotton textile-processing units.
- Paper & Paper products group constitute 8.5 %.
- 2.5% units engaged in Hosiery and Ready-made garments.
- Units engaged in Leather, Rubber, Mineral products, Metal Products, Transport Equipment, Electrical products etc constitute less than 1 %.
- Though most of the industry groups show an impressive growth rate during the last decade, in absolute terms it is only the food products industry, which is dominating in the district followed by cotton textiles, paper products & wood products.
- Hosur and Dharmapuri accounted for major share of almost all products.
Concentration of SSI Units in Dharmapuri
The growth of SSI units in Dharmapuri is so unbalanced. Nearly 56.1 % of the units are concentrated in Hosur, Dharmapuri and Krishnagiri blocks and the remaining 43.9 % only are located in the remaining places. Following table shows the block-wise number of registered SSI units (including servicing units) as on 31-3-2001 in Dharmapuri district.
TABLE No. 5.4
Block-wise No. of Registered SSI units as on 31-3-2001
| Sl.No. |
Name of the Block |
No. of Pmt. Regd. SSI Units |
% to the total |
| 1 |
Bargur |
267 |
2.8 |
| 2 |
Dharmapuri |
2642 |
27.5 |
| 3 |
Harur |
256 |
2.7 |
| 4 |
Hosur |
2236 |
23.3 |
| 5 |
Karimangalam |
358 |
3.7 |
| 6 |
Kaveripattinam |
294 |
3.1 |
| 7 |
Kelamangalam |
364 |
3.8 |
| 7 |
Krishnagiri |
603 |
6.3 |
| 8 |
Mathur |
117 |
1.2 |
| 9 |
Morappur |
150 |
1.6 |
| 10 |
Nallampalli |
197 |
2.0 |
| 11 |
Palacode |
467 |
4.9 |
| 12 |
Pappireddipatti |
236 |
2.5 |
| 13 |
Pennagaram |
489 |
5.1 |
| 14 |
Shoolagiri |
185 |
1.9 |
| 15 |
Thally |
248 |
2.6 |
| 16 |
Uthangarai |
202 |
2.1 |
| 17 |
Veppanapalli |
239 |
2.5 |
| |
Total |
9611 |
X |
- Dharmapuri & Hosur blocks together accounted for 50.8 % of the registered SSI units.
- Krishnagiri & Pennagaram blocks accounted for around 5 - 6 % of the SSI units each.
- Karimangalam, Tally, Kaveripattinam, Kelamangalam & Bargur blocks accounted for 3 to 4 % of the units.
- Mathur, Shoolagiri, Morappur blocks accounted for less than 2 % of the SSI units.
- 50 % of the food processing units are concentrated in Dharmapuri & Hosur blocks and the remaining units are spread over the remaining blocks.
- Hosiery & Garment units are concentrated in Dharmapuri, Hosur & Krishnagiri.
- Units engaged in Cotton textiles, wood products & Paper products are mainly concentrated at Dharmapuri and Hosur.
- Units manufacturing mineral products, chemicals, rubber products & electrical products are mainly located at Hosur.
Concentration of SSI units in and around urban Centres is so obvious in the district. It may be seen from the above table that majority of the units are located in Hosur and Dharmapuri and the most backward blocks viz., Mathur and Veppanapalli together accounted for a palpable 3.7 % of the total regd. SSI units in the district.
Industrial Co-operative Societies
There are 8 industrial co-operative societies functioning under the DIC in the district. Of them, one society is engaged in production of Polythene bags, another engaged in Gem cutting and polishing and the remaining 6 are engaged in the production of coir products.
Following table shows the details on the functioning of Industrial Co-op Societies in the district.
Table No 5.5
Activities & Production of Industrial Co-operatives during 2000-01
| Sl.No. |
Name of the Indl. Co-op Society |
Nature of activity |
No. of Members |
Production in 2000-01 |
| Quantity (Tonnes) |
Value (Rs. in lakhs) |
| 1 |
Dharmapuri District Polythene workers’ Indl. Co-op Society |
Production of Polythene Bags |
50 |
63.43 |
33.12 |
| 2 |
Navalai Coir workers Indl. Co-op Society |
Production of Coir |
285 |
326.11 |
36.23 |
| 3 |
Vadamangalam Coir workers’ Indl. Co-op Society |
-Do- |
110 |
231.11 |
23.16 |
| 4 |
Palavadi Coir workers Indl. Co-op Society |
-Do- |
131 |
24.70 |
2.40 |
| 5 |
Karamadia Coir workers Indl. Co-op Society |
-Do- |
144 |
101.36 |
10.09 |
| 6 |
Bargur Coir workers Indl. Co-op Society |
-Do- |
82 |
86.37 |
8.51 |
| 7 |
Chinnamanjavadi Coir Indl. Co-op Society |
-Do- |
111 |
45.50 |
2.60 |
| 8 |
Bargur Gem cutting workers Indl. Co-op Society |
Gem Polishing |
63 |
- |
2.00 |
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Khadi & Village Industries
Khadi and Village industries play an important role in the generation of employment at village level. Following table shows the production during 2000-01 effected by the Khadi and Village Industries and sales by the chain of Khadi Board Show Rooms in Dharmapuri district.
Table No. 5.6
Production & Sales of Khadi & Village Industries Sector in 2000-01
| |
Product |
Production (Rs. in lakh) |
Sales (Rs. in lakh) |
| a |
Khadi Industries:
- Cotton yarn
- Cotton Textiles
- Wool
- Silk
- Polyester
- Others
|
3.11
24.06
-
-
0.51
- |
13.72
2.66
5.80
28.35
4.54
0.29 |
| b |
Village Industries |
5.80 |
5.31 |
| |
Total |
33.48 |
60.67 |
The Khadi Board has set up Loom centres at Nathampatti, Papparapatti, Palacode, Singarapattai and Kannandahalli. One footwear manufacturing units is functioning at Vellichandai and a soap manufacturing unit at Kaveripattinam.
The Khadi and Village industries Commission provides margin money of 30 % of the project cost to the village industries. During the year 2000-01 a sum of Rs. 7 lakhs had been sanctioned as margin money by the commission.
Handloom Sector
Handloom industry is the traditional industry providing employment to over 10 lakh persons in Tamilnadu. In Dharmapuri the handloom weavers are concentrated at Pennagaram, Nallampalli and Dharmapuri,. There are 8 Handloom Co-operative Societies. Production during the year 1999-00 was estimated at 2.29 lakh metres of cloth valued at Rs.11.17 crore.
Power-loom Sector
There are two powerloom co-op societies in the district. 155 power-loom units are functioning under the co-operative fold and 1234 looms under non-cooperative fold. Powerloom weavers are concentrated mainly in Dharmapuri, followed by Nallampalli and Pennagaram blocks.
SILK REELING
There are 121 units engaged in silk reeling in the district. Following table shows the number of silk reeling units block-wise in Dharmapuri district :
Table No. 5.7
BLOCK-WISE NO. OF SILK REELING UNITS AS ON MARCH 2001
| S.No. |
Name of the Block |
No. of the Units |
No. of Charka |
No. of Basins |
No. of Multi-end reeling units |
| 1 |
Dharmapuri |
40 |
11 |
306 |
16 |
| 2 |
Nallampalli |
7 |
3 |
48 |
- |
| 3 |
Morappur |
1 |
- |
- |
10 |
| 4 |
Palacode |
22 |
38 |
171 |
- |
| 5 |
Pennagaram |
11 |
6 |
46 |
- |
| 6 |
Thally |
1 |
- |
4 |
- |
| 7 |
Hosur |
31 |
36 |
32 |
14 |
| 8 |
Krishnagiri |
8 |
6 |
23 |
- |
| Total |
121 |
100 |
630 |
40 |
| |
Source : Assistant Director of Sericulture, Dharmapuri.
Dharmapuri block is having 40 units with 306 basins and a good numbers of silk yarn twisting units are also functioning in this block. The existing units are having the semi-automatic machinery and the yarn produced from these units is not having uniform quality. Recent developments in the silk reeling industry such as Multi-end Reeling machineries were installed at Hosur and Dharmapuri. Silk yarn produced from this machinery is of very high quality and fetches higher price. Government is promoting the multi-end silk reeling units by providing a subsidy of 30% of the machinery cost. There is vast scope for silk reeling units using multi end reeling machineries.
Though this district is producing considerable silk yarn, there is no silk weaving Centre in this district. The silk yarn produced is marketed mainly at Kancheepuram. There is ample scope for silk reeling & weaving activity in the district.
Problems faced by Small Scale Industries
There is a general feeling among the industrialists that while the lending institutions are ready to extend credit facilities to big borrowers who can provide collateral security, they are very much reluctant to consider loan applications of small and tiny industrial units. The SSI units are being neglected by the banking sector and insufficient financial flow still remains unsolved.
The present attitude of the banking sector in calling for information in piecemeal results in inordinate delay in sanctioning of loan. It also results in escalation of project costs and also makes the working capital projections incorrect. The units thereby face shortage of working capital in the long run.
Another peculiar problem faced by the industrial units in this district is that while most of the industrial units are located in Hosur taluk, most of the departments are located in the District Headquarters i.e. Dharmapuri, which is situated around 90 k.m. away. The journey to Dharmapuri (and Back) takes nearly 4 - 5 hours. For every problem the entrepreneur is forced to run to Dharmapuri instead of concentrating on his production schedule and marketing.
Delay in the settlement of payments due to the small industry sector by medium and large scale industries adds to their financial problems. The Industrial Facilitation Council that has been set up in Coimbatore for the western districts including Dharmapuri under the Chairman-ship of the District Collector is expected to solve their problem to some extent even though it may not altogether wipe out the delay in the payment. There is an apprehension that recourse to the Facilitation Council may cause the small scale sector to lose "future orders" from the defaulters. So popularising the concept of factoring services like discounting of bills etc by the commercial banks may solve the problem to some extent.
The present liberalisation Policy permits import of second hand textile machinery, which is available at cheaper rates. So, the local machinery manufacturers lose their market to the imported second hand machinery. The cost of new technology is very high and the market is unsure. Hence indigenous units are reluctant to take up production of new machinery using imported technology, as it is not possible to recover the cost of technology.
More over, where as import of looms is permitted at 5 % customs duty the indigenous machinery manufacturers have to pay excise duty @ 16 % and sales tax @ 4%. The CENVAT credit facility is also of little use, since most of the cloth producers are in the power loom sector manufacturing grey cloth not attracting duty. So they find the indigenous machinery costlier than the imported looms. This in turn affect the textile machinery suppliers as well as their ancillary units.
The absence of any power project within the district is the main cause for the fluctuations and frequent power cuts experienced by the industries in this district.
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