NEW INDUSTRIAL POSSIBILITIES

Industrial Development in Dharmapuri district is confined only to a few pockets like the Hosur, Dharmapuri, Krishnagiri and Bargur blocks. A lot of scope exists for starting small scale, cottage and village industries using locally available resources in other parts also. As said already, the strength of the district lies in its horticulture resources, agricultural products like paddy, cotton, sugarcane, groundnut, tapioca, millets etc., which offer scope for industrial use. Existing sugar mills provide good scope for development of industrial alcohol, mini paper mills and chocolate units.

The district is rich in granite reserves. Though these resources have been utilised partly by the existing industries, there is still scope for development of more industries on this line.

Existing large-scale units in the district offer limited scope for the development of ancillary industries as they themselves face the onslaught of competition from the international market. Still there is good scope for development of auto ancillaries, packing materials etc in the district. Service oriented industries, especially electronic communication and related industries and tourism & entertainment Industry etc offer enormous scope for development.

PRODUCT IDENTIFICATION

Resource based Industries:

Agro Based Industries

Due to the extent of agricultural operations and the products available, there is a vast potential for development of agro based and allied industries in this district.

Dairy Farming and Milk products

The district has a sizeable bovine population, which can be exploited to promote dairy farming and manufacture of milk products.

Horticulture based products

The district forms the main horticulture base in the state. The varieties and the quantity of fruits and vegetable available provide scope for the development of horticulture based industries.

Biomass based power generation

Paddy husk and other agricultural waste products available in the district can be exploited for power generation.

Mechanical

The auto ancillary sector, industrial machinery and components, Solar power based equipment and auto conversion kits are some of the areas suitable for development.

Chemical and Mineral based Industries

Existing sugar mills offer scope for developing Ethanol based industries. There is scope for drugs and pharmaceutical units, mineral water plants, plastic products like toys & packing materials, granite polishing units and other mineral-based products.

Power Generation based on solar energy.

The high temperature in the district provides good scope for the development of solar-based power generation.

Leather Goods

The sizeable cattle population provides scope for development of leather-based industries in the district.

Demand based industries :

Electronic Industry & Software Services

Electronic sector provides good opportunity for development. There is good scope for IT enabled services sector, which is expected to grow by 15 fold by the year 2008.

Textiles

Textile industry is a traditional industry in the state. There is good scope for further development as the restrictions in world trade are removed. Our expertise in the field of cotton textiles, hosiery and garments will be an advantage over the others. The district has high area under cotton. There is good scope to promote textiles industry especially the Power loom sector as well as ready-made garment units.

Tourism, Entertainment and Recreation

There are a number of important places from the point of tourism. It provides scope for development of hotel and restaurant industry. Further, there is scope for creating recreational activities like theme parks, water games, ropeways etc.

New Industrial possibilities

Industry -Suitable Location

Industry Location
Agro based Industries:
Paddy based units

Dharmapuri, Nallampalli, Palacode, Pappireddipatti, Karimangalam, Krishnagiri, Kaveripattinam
Coconut based units Dharmapuri, Hosur, Bargur, P.R. Patti, Kaveripattinam, Mathur, Uthangarai, Palacode
Other Cereals & Millet based units Pennagaram,, Karimangalam, Dharmapuri, Nallampalli, Hosur, Shoolagiri, Thally, Kelamangalam.
Pulses based units Pennagaram, Bargur, Krishnagiri, Hosur, Shoolagiri, Harur, Morappur, Dharmapuri
Horticulture based industries Krishnagiri, Karevipattinam, Mathur, Hosur, Palacode, Uthangarai, & Kelamangalam.
Other Agro based industries All blocks (based on the product selected)
Animal Husbandry Based All blocks
Textiles Dharmapuri, Hosur, Krishnagiri, Nallampalli.
Sericulture based industries Dharmapuri, Shoolagiri, Hosur, Pennagaram, Kelamangalam, Veppanapalli & Thally.
Floriculture Thally, Bargur, Hosur, Kaveripattinam & Kelamangalam.
Chemical Based Dharmapuri, Hosur, Palacode, Harur.
Mineral based industries Krishnagiri, Pennagaram, Harur, Palacode, Kelamangalam & Thally.
Mechanical Hosur, Dharmapuri.
Electronic industry & software services Hosur, Dharmapuri.
Tourism & Recreational activities Hosur, Dharmapuri, Krishnagiri.


AGRO BASED INDUSTRIES

 1.Paddy Based Industries

Paddy is an important crop cultivated in the district as shown below:

Normal Area under cultivation of paddy - 57,792 hectares

Normal Annual production of rice - 1,98,994 tonnes.

There are a number of rice mills in this district. Almost the entire paddy produced in the district is hulled locally. There is scope starting following Paddy based units in the district.

  1. Rice Bran Oil

    With the locally available paddy, the rice bran to the tune of around 20,000 tonnes could be available even at a conservative rate of 6% of the paddy hulled. This can be put to industrial use. This surplus bran available locally can be utilised for extraction of oil, which has demand for industrial purposes mainly for soap manufacturing as well as for edible purposes. Rice bran is rich in oil content. It contains around 15-20 % of oil.

    Rice bran oil production is around 4.8 lakh tonnes in India, of which 1.5 lakh tonnes is used for industrial purpose. Rice bran oil is a perfect substitute to Palm Fatty Acid Distillate, which is being imported. Costly imported material diverts user industries to switch over to substitutes available locally. Hence, there is good market for the rice bran oil.

    The demand supply gap in the domestic market for oil seeds & edible oil would be between 12-15 lakh tonnes. To fill up the gap edible grade rice bran oil can also be promoted. At present India is the largest producer of edible grade Rice Bran Oil with 27,000 tonnes per annum against the potential of 7,50,000 tonnes.

    Hence, there is scope for more solvent extraction units for rice bran oil in Dharmapuri district especially at Krishnagiri, Kaveripattinam and Dharmapuri.

    Minimum Economic Unit size : 2 Tonne/day

    Indicative Investment : Rs. 19 lakh

    Technology Source : CFTRI, Mysore.

  2. Activated Carbon from Paddy Husk

    Paddy husk available from rice mills in the district could be utilised for manufacturing activated carbon - a catalyst for removal of colour, taste and odour in edible oils, foodstuffs and pharmaceuticals and for recovery and reclamation of various solvents. The estimated availability of paddy husk in the district is about 1.6 lakh tonnes derived @1/3 times of paddy grown in the district. Some units can be set up in the district, preferably, at Krishnagiri, Kaveripattinam, Palacode and Dharmapuri.

    Minimum Economic Unit size : 50 Tonne/month

    Indicative Investment : Rs. 3 lakh

    Technology Source : CFTRI, Mysore.


  3. Rice Husk Hydraulic Pozzolana:

    Rice husk can also be used as a hydraulic binder. It is used as plaster for soil stabilisation, load bearing concrete blocks, pressed stabilised bricks, foundation concrete in making masonry mortar and plaster for building industry. Pozzolanic material from rice husk and clay, on mixing with limestone, gives a good cementitious material.

    Crushed rice husk, clay & lime sludge are mixed and formed into balls manually. The balls are calcined in open to trench utilizing the heat of combustion of rice husk. The fired product is soft which can easily be ground to a fine powder. The hydraulic binder has a bulk density of 360 kg/cubic meter increases to 700 kg / cu.m.

    The mortar from rice husk clay pozzolana is superior in properties and cheaper than conventional mortars. All raw materials required are available locally.

    Aspiring entrepreneurs can contact the Central Building Research Institute, Roorkee for technology and other information.


  4. Household Detergents from Paddy Husk

    Paddy husk can be used for the manufacture of detergent powder. The main raw materials are paddy husk, soda ash, sodium Tripoly phosphate, borax and alkylaryl sulphonate.

    The National Research Development Corporation (NRDC), Delhi has come out with a technology for manufacturing household detergents. Aspiring entrepreneurs can contact NRDC. A unit can be set up by using this technology in this district.


  5. Rice Bran Wax (Upgraded).

    Rice bran Wax finds application in paper, candle, moulded novelties, electric insulation, polishes, cosmetics, printing ink, lubricants, adhesives, chewing gum, vegetable coating and pharmaceuticals.

    Fine grade rice bran wax can be manufactured from crude rice bran wax. The process involves selective removal of triglycerides, fatty acids, resinous matter and other undesirable components using suitable organic compounds from crude rice bran wax.

    Minimum Economic Unit size : 0.5 tonne crude rice bran wax /day

    Indicative Investment : Rs. 25 lakh

    Technology Source : Indian Institute of Chemical Technology. Hyderabad.
 2. Coconut based products

According to the Coir Board, Tamilnadu stands first in the production of brown coir fibre in the country, accounting for 43 %, but its focus on value added products is almost nil. Dharmapuri has a sizeable area, accounting for nearly 7 % of the area in the state, under coconut cultivation.

Area under Coconut cultivation - 20,472 hectares.

Total Production of coconuts - 3,741 lakh nuts

Average production per hectare - 10,204 nuts.

There is good scope for industrial activity based on coconut and waste material like husk and pith from coconut.

Coir based industry offers enormous employment opportunities. There is a vast market both domestically as well as internationally, for coconut-based products.

The Coir Board grants financial assistance upto 25 percent of the cost of equipment and infrastructure facilities with a ceiling of Rs.1 lakh for setting up new Fibre/spinning rope and Matting / Rubberised coir unit in the private sector. Interested persons can contact the Coir Board at the following addresses for technical advice/availing of various schemes.
  1. The Regional Office Coir Board, 110, Murugappa Complex, Palakkad Rd, Pollachi - 642001.


  2. The Regional Coir Training & Development Centre Coir Board Pillayarpatti, Vallam (Via), Thanjavur - 613403.
  1. Manure based on Coir Pith

    Coir pith can be converted into organic manure. The process takes a month’s time. Scientists at the Coir board, Central Coir Research Institute, Alleppey and Tamilnadu Agricultural University, Coimbatore using a formulation called “Pith Plus”, develop the technology jointly. To process one tonne of coir pith, two Kgs. of pith plus and five Kgs of urea are needed.

    The process essentially consists of repeatedly sandwiching uniform layers of pith plus, urea and coir pith in a fixed ratio of 100 Kgs of coir pith, 400 grams of pith plus and one kg of urea until the heap reaches the height of one meter. Water should be sprinkled if the moisture content of the pith falls below 200 per cent.

    At the end of 30 days, the coir pith turns into black mass of compost with carbon & nitrogen ratio of 24 : 1, which is recommended as an ideal organic manure.


  2. Coir Geo-Textile

    Soil erosion is a grave problem for the humankind. It is reported that 18% of the topsoil is being eroded every year all over the world. It has been established that coir netting is an ideal material for prevention of soil erosion through wind, rainfall and other natural calamities.

    Being a biodegradable material, coir has increasing demand as geo-textiles in European markets. Jute, which is the main substitute to coir, has comparatively lower strength. Hence, coir is preferred in long slopes and canals with high velocity of water. Other applications of geo-textile are soil stabilisation, soil reinforcement, road pavements, drainage filter etc. The global demand for geo-textiles is 1400 million square metres. Present contribution from the Indian coir sector is hardly two per cent. It was reported that 474 MTs of coir geo-textiles valued at Rs. 1.7 Crores were annually exported from India.

    As Dharmapuri district has a sizeable area under Coconut cultivation, there is good scope for geo-textile manufacturing units in the district.


  3. Polycoir

    Polycoir is an alternative to wood. It is the composite material of coir and polymer. It finds application in construction and consumer industries. It can be used for manufacture of furniture, door shutters, panelling etc. The Central Coir Research Institute of the coir Board in collaboration with the Regional Research Laboratory (RRL) Thiruvananthapuram has developed Polycoir out of brown fibers of coconut.

    The coir fibre is cut into appropriate width and coated with the desired quantity of phenol formaldehyde resin. Then it is converted into sheets by press moulding. The sheets are cut into required size and stacked one over the other. The number of layers used is decided on the requirements of thickness of the component. Then edges are trimmed and polished.
  4. The main advantages of Polycoir over plywood are:

    1. Termite Proof

    2. Water Resistant

    3. Fire Resistant

    4. Can be moulded in desired shape; and

    5. Good aesthetic appeal

    Minimum Economic Unit size : 2.5 tonnes/day

    Technology Source: Regional Research Laboratory, Trivandrum.

  5. Coconut husk particle board

    The coconut husk can be used for manufacture of particleboard, which is a substitute to plywood. It is used for partitioning, false roofing and paneling.

    The coconut husk has self-bonding property and so boards can be made using 0.5 % adhesive only. The husk is cut and the pieces beaten by a wooden mallet and shredded. The shreds are dried and coated with phenol formaldehyde resin, formed into mats and pressed at 150-Degree Centigrade at 10 Kg/sq. cm for 30 min. to get 20-mm thick boards.

    Minimum Economic Unit size : 12 tonnes/day

    Indicative Investment : Rs. 24 lakh

    Technology Source: Central Building Research Institute, Roorkee.


  6. Desiccated coconut

    Another coconut-based industry that can come up in the district is the manufacture of desiccated coconut. The coconut production in the district is estimated as 3741 lakh numbers. Viewed in this background and also the wide application of desiccated coconut in bakery, confectionery and betelnut units, there is high scope for the product. Some units can be set up at Hosur Dharmapuri and Krishnagiri blocks.

    Minimum Economic Unit size : 2000 tonnes/Annum

    Indicative Investment : Rs. 25 lakh

    Technology Source : CFTRI, Mysore.


  7. Composite unit for manufacture of Other Coconut based Products :

    The following value added products can also be manufactured using coconut products and waste in a composite unit:

    • Coconut Shell Cups as Ice cream cups


    • Coconut Shell Charcoal


    • Coir Moulded Baskets


    • Coir Bristle Fibre for brushes


    • Cut coir


    • Coir Yarn


    • Coir mats


    • Coir Matting with or without latex backing


    • Coir carpets


    • Coir rugs

    Minimum Economic Unit size : 10 tonnes/day


  8. Indicative Investment : Rs. 25 lakh

    Entrepreneurs interested can contact the coir board.
 3. Jowar based glucose and Jowar flakes

Jowar is another important crop in the district. It accounts for 5.1 % of the area under the crop and nearly 12.5 % of its output in the state during 1999-2000.

Normal Area under Jowar : 22,865 hectares.

Normal Production : 36,074 tonnes.

At present major portion of the produce is used for cattle/poultry feed. There is good scope for manufacture of glucose, which is used for the preparation of biscuits.

Minimum Economic Unit size : 3 Tonne/day

Indicative Investment : Rs. 18 lakh

Technology Source : CFTRI, Mysore.

Jowar can also be converted into Jowar flakes, which can be used in spiced mixtures and other traditional food preparations.

 4. Samai based Products.

Samai is another important crop in the district. It accounted over 50 % of the area and out turn of the crop in the state.

Normal Area under Jowar : 26,737 hectares.

Normal Production : 21,246 tonnes.

At present major portion of the produce is sent to neighbouring districts for manufacture of poultry feed. There is good scope for starting the following units :

  1. Manufacture of glucose, which is used for the preparation of biscuits.


  2. Poultry Feed


  3. Cattle Feed.
Minimum Economic Unit size : 3 Tonne/day

Indicative Investment : Rs. 18 lakh

Technology Source : CFTRI, Mysore.

 5. Ragi Based products.

Ragi is another important crop in the district. It accounts for nearly 53 % of the area and out turn of the crop in the state.

Normal Area under Jowar : 59,348 hectares.

Normal Production : 1,10,240 tonnes.

At present major portion of the produce is sent to neighbouring districts for manufacture of cattle feed/poultry feed.

There is good scope for the following units.

Manufacture of malted food.

Manufacture of Cattle feed.

Manufacture of Poultry feed.

Technology Source : CFTRI, Mysore.

 6. Extraction of Groundnut Oil - New process

Groundnut is cultivated in 73 thousand hectares in the district. Normal production of groundnut has been estimated at 1.17 lakh tonnes. At present there are some oil mills and power gannies in the district extracting oil from groundnut and other oil seeds like gingely.

A new process has been developed for extraction of oil from the nuts. This process does not use any chemicals like hexane, which is used in solvent extraction process. The process also produces fat-free groundnuts. It does not alter the shape of the nuts. For technology and other details, aspiring entrepreneurs may contact:

Mr. Surender Kumar Sood,
Block 36, Flat-4,
Vijaynagar Colony,
Hyderabad - 500 057.
Most of these oil mills do not have any facility for refining the oil. Refined oil is demanded more in the urban areas. Hence a unit can be started for refining of oil using latest technology wherein after extraction oil, fat free groundnut is obtained. Both oil and fat free groundnut may fetch more income than adopting traditional method. Since Palacode, Pennagaram, Nallampalli, Thally, Kelamangalam, Shoolagiri & Karimangalam blocks have sizeable area under groundnut these blocks are suitable setting up of Oil extraction unit above unit.

 7. Tapioca Based Polymer

The Indian Tuber Crop Research Institute at Kayemkulam, Tamilnadu has extracted a polymer from tapioca. The polymer is biodegradable and has the potential to replace nearly 40 % of the conventional petrochemical based polymers used in plastic packaging.

Tapioca is cropped in an area of around 12 thousand hectares in Dharmapuri District and the yield is around 85,000 tonnes. Hence, there is good scope for this industry in Dharmapuri district. Aspiring entrepreneurs can approach the Indian Tuber Crop Research Institute, Kayemkulam, Tamilnadu for technical know-how and other information.

 8. Manufacture of seeds and seedlings

The advantages of using processed seeds are well understood by the farming community. The demand for processed seeds, which are free from impurities, is increasing. The seeds are exposed to chemical treatment for control of seed-borne diseases. According to the Tamilnadu Agricultural University, Coimbatore, there is a good demand for Co.2 papaya seeds in Tamilnadu as well as in states like Andhra Pradesh, Gujarat and the Uttar Pradesh. Also, there is high demand for coconut seedlings, Cotton hybrid seeds, Tamarind seedlings and other vegetables and fruits. This offers a good opportunity for horti-technocrats for launching ventures in the production of treated seeds and seedlings. Aspiring entrepreneurs can contact the Tamilnadu Agricultural University, Coimbatore for process and other information.

 9. Neem based products

According to the 'Neem Mission', Pune, Neem seed collection alone has the potential to employ over 4 lakh persons and earn Rs 60 Crores in wages in India in addition to promoting small & Medium scale industries. The products of Neem like fertilisers, insecticides, oil, soap etc have good market potential. The district with its huge Neem trees offers scope for industrial development in this line.

 10. Bio-fertiliser and Bio control agents

According to Tamilnadu Agricultural University, a right mix of organic manure, fertiliser and bio-fertilisers can stabilise field crops by maintaining the productivity of the soil without damaging the ecology. Bio-fertilisers could save 20 to 40 kg of Nitrogen per hectare, which would otherwise have to be applied through fertilisers. Indian fertiliser usage is around 33 million tonnes out of which only 26 million tonnes have been produced indigenously. The rest is being imported at heavy prices. To save this, bio-fertiliser and bio-control agents can be produced indigenously.

Bio-fertilisers based on Rhizobium, Azospirillum, Azotobacter and Phosphate solubilisers etc can be manufactured.

Dharmapuri district, being a horticulture belt, provides good market source for bio-fertilisers and bio-control agents.

Minimum Economic Unit size : 100 Tonne/Annum

Indicative Investment : Rs. 20 lakh

Technology Source : TNAU, Coimbatore, Regional Research Lab., Jammu.

HORTICULTURE BASED PRODUCTS

Dharmapuri district is an important horticulture belt in the state. Many varieties of vegetable, fruits, spices, plantation crop and flowers are grown in this district. Area under horticulture is nearly 79,000 hectares. It offers high scope for the development of industries based on horticultural products.

 11.Mango Based Products.

Mango is a very important fruit crop of Dharmapuri district :

Area under mango in Dharmapuri : 36, 647 Hectares

Mango production : 1,37,490 Tonnes

Dharmapuri accounted for over 44 % of mango produced in the state. Following products can be manufactured from ripe mango.

  1. Canned fruit slices in Sugar syrup


  2. Canned pulp


  3. Mango Squash, Juice, Nector


  4. Jam


  5. Frozen Mango Pulp
Mango pulp is the main product exported to U.K. and other European markets and Gulf countries. India is the main exporter of mango pulp to the international market. The world demand for mango products is increasing annually particularly from temperate countries.

With its vast area under mango crop, Dharmapuri district offers good scope for starting mango fruit processing industries. The plant can be used to process other fruits like Guava, Tomato etc during the off-season period.

Indicative investment : Rs. 75 lakhs.

Economic Capacity : 20 MT / day

Technology : CFTRI, MYSORE.

 12.Tomato Based products

Tomato is cultivated extensively in the district. Area under tomato is over 6000 hectares and the yield is roughly 30,000 tonnes. Through concerted efforts, area under this crop can be further increased. It offers good scope for tomato based industries. Following products can be manufactured based on tomato:

  1. Tomato Sauce


  2. Tomato pickles


  3. Tomato Juice
 13. Papaya based products

Dharmapuri district has an area of 43 hectares papaya during 1999-2000 accounting for 20% of the area under Papaya in the state. There is good scope to bring more area under papaya in the district considering the very high fallow land available here. It offers good scope for industrial usage, which is very limited at present. Following products can be manufactured using papaya:

  1. Papaya candy (Jelly)


  2. Tutty fruity


  3. Papaya milk powder


  4. Papain or Latex


  5. Jam


  6. Pickles
There is good demand high market for the papaya milk powder in the international market.:

 14. Chilly sauce.

Dharmapuri district has got an area of 926 hectares under chilly cultivation. The total output of the crop during 1999-2000 was estimated at 1200 tonnes. There is scope to bring more area under the crop. It provides scope to start units manufacturing chilli sauce.:

Chilly sauce is used as food adjunct for use with bread and such bakery foods, Chinese foods and fast foods, etc.

Minimum Economic Unit size : 0.2 Tonne/day:

Indicative Investment : Rs. 6 lakh:

Technology Source : CFTRI, Mysore.:

 15. Spice Products, Essential Oils & Oleoresins - Export oriented

Plantation and processing of spice products including extraction of spice oil and oleoresins offer good scope for development. There is a vast demand in the international market for these products and India is already enjoying a major share in it. The export of spices targeted for the country during 1999-2000 was 2.17 lakh tonnes valued at Rs. 1780 Crores against the actual export of 2.1 lakh tonnes worth Rs. 1650.02 Crores in 1998-99. The world trade in spices in 1998-99 was 5.5 to 5.75 lakh tonnes valued at US $ 1.9 to 2.1 billion and India's share was 2.1 lakh tonnes valued at us $ 393.90 millions. :

The projected world trade in spices in 2001 is 6.25 lakh tonnes valued at US $ 3 billions.
The country also enjoys global monopoly in spice oils and oleoresins. During 1998-99, the country exported 262 tonnes of oils and oleoresins valued at Rs. 293.10 Crores against the previous year’s achievement of 2351 tonnes worth Rs.222.21 Crores. In the case of essential oil India is the 3rd largest producer accounting for 16 % of the global production in volume terms. Especially in Mint oil its share is nearly 60 %. :

Dharmapuri district with an area of over 7,200 hectares under spice and condiments besides the 926 hectares under Chilly offers good scope of industrial units manufacturing Oleoresins and other spice-based products.:

Minimum Economic Unit size : 80 Tonne/annum:

Indicative Investment : Rs. 13 lakh:

 16. Vegetable Dehydration & Cold storage

In Dharmapuri district kinds of vegetables and fruits are grown. Some of the vegetables are seasonal. During the post harvest season of crops like chillies, tamarind, mango etc., there is glut in supply in the market. It adversely affects the market price resulting in extreme down fall of procurement prices for the commodities and so the farmers are not getting remunerative prices for their produce. To avoid it, vegetables can be dehydrated for future use. This will ensure a reasonable price to the farmers also. Further, there is good market for dehydrated vegetables in gulf countries.:

Creation of good cold storage facility will save the shelf life of fruits and vegetables. At present the available cold storage facility in this district is very limited and it requires to be enhanced.:

 17. Cut Flowers

Dharmapuri has been identified as one among the areas suited for the promotion of floriculture especially Cut flower plantation, which has high export potential. The demand for cut flowers is growing at the rate of 30 %.:

The district, with an area of 1900 hectares, at present accounted for over 10 % of the area under floriculture in the state. The climate prevailing in northern & eastern blocks like Hosur, Thally, Kelamangalam, Bargur & Shoolagiri are ideally suited for setting up of floriculture farms. As the Hosur town is located just 40 Kms away from the Bangalore international airport, these block are best suited for floriculture farms as there won’t be any transportation problem for the cut flowers exporters. :

 18. Dairy Farming and Manufacture of Milk products.

Agriculture and animal husbandry are complementary to each other. Dairying being one of the important aspects of animal husbandry, it is included in the farming business. Dairy farming in large scale depends on various factors like the geographical location with reference to climate and rainfall, availability of water, availability of fodder and the pasture. Already the district possesses sizeable bovine population. Considering the availability of natural cattle feed like paddy straw etc and the scope for starting cattle feed units in the district, dairy farming and milk product manufacturing is considered to be one among the profitable ventures in this district.:

Dairy farming will give a fillip to promote milk and milk based industries. It will also give employment opportunity to the rural folk. Dairy farming is among the profitable activities with very limited risk.:

 19. HERBAL PRODUCTS - NATURAL DYES

A number of herbal plants grow spontaneously in many places in the district. They have not yet been put to industrial and commercial use. They can be converted into good medicines for curing a number of diseases. Interested persons can contact the Centre for Medicinal and Aromatic Plant, Kodaikanal or the Agricultural University, Coimbatore for necessary assistance for collection as well as cultivation and processing of valuable herbs. This will pave the way for utilisation of wasteland and create employment for the rural masses apart from producing value-added products.

According to the `Director, Department of Indian system of Medicines & Herbs (ISM & H), there were around 11,000 companies in the country dealing with herbs and herbal products. The combined turnover of the Industry was approximately Rs 23,000 Crores and would touch Rs.40,000 Crores over the next 5 years.

The union Government has constituted a National Board of Medicinal Plants to regulate the herbal products industry. The Board would oversee all aspects of business from cultivation of herbs, scientific research to manufacture of the drugs, warehousing, advice to the Government, provide financial assistance, processing and packing, help in conservation of herbs and to set up herbal gardens.

Products based on herbs:
  1. Herbal Medicines


  2. Herb based cosmetics


  3. Natural Dyes
As of now, a lot of products are exported in the form of bulk raw material from the southern districts. Very little formulations are being exported. As a lot of herbal plants are available in the district and the neighbouring southern districts, the district offers good scope for the development of herbal medicinal products.

The demand for natural dyes in the western world is slowly increasing. Henna, Turmeric, Hibiscus (Sembarutty) and some other herbal plants can be used for the manufacture of natural dyes. Considering the standards imposed by importers of western countries regarding quality and their interest in linking trade with environment and labour standards the day is not for away when they may impose ban on textiles based on chemical dyes. So there is good scope for natural dyes.

However, it is suggested that aspiring entrepreneurs should go in for tie-ups with farmers for the proper cultivation of required herbal raw material to ensure continuous supply. Only collection of locally available herbs may not be sufficient for continuous supply in the long run. Investment required for setting up a dye unit is as follows.

Minimum Economic Unit size : 0.2 Tonne/day

Indicative Investment : Rs. 6 lakh

Technology Source : Central Institute Of Medicinal & Aromatic Plants, Kodaikanal.

TEXTILES

  20. Cotton Spinning & Readymade garments

According to the Cotton Textile Export Promotion Council, export of cotton yarn, fabrics and made-ups during the year 1999-2000 was estimated at US $ 3.6 billion. The target for 2000-2001 has been fixed at $4.1 billion, out of which yarn would be accounting for US $ 1.7 billion and the fabric & Made-ups together would fetch US $2.4 billion.

Textile exports registered 22 % annual growth during the period 1991 to 1997. Likewise the hosiery and readymade garment markets also provide good scope for development. There are certain varieties where even the existing quota is under utilised like structured garments for men and women, baby-wear, terry towel etc. There is good scope for expansion of market for these products. Further once the trade barriers are removed by 2005, then this industry can get impressive orders from the international markets.

Minimum Economic Unit size : 20,000 pieces /Annum

Indicative Investment : Rs. 6 lakh

 21. Jute Diversified products

There is good market for jute based products like Jute fancy bags, Chapels, Rope, handicraft items from Jute fibre fancy articles from jute. At present there are very few units engaged in this activity in the state.

 22. Silk Reeling & Weaving industries.

According to the Central Silk board, the domestic demand for mulberry silk is estimated to be around 22,000 tonnes against the indigenous supply of 15,500 tonnes. The rest of the raw silk is being met with imports mainly from China.

In Tamilnadu, Dharmapuri district ranks first in mulberry cultivation and production of cocoons. The district accounted for nearly 60 % of the state’s cocoon production and raw silk. The climate prevailing in the district is so favourable for mulberry cultivation. There is ample scope for increasing the area under mulberry cultivation and cocoon production in the district.

Present Status Sericulture operations in the district:

Area under mulberry cultivation : 16,155 Acres.

Production of Cocoons : 36.03 Tonnes.

Production of Silk yarn : 1,950 Tonnes

There are 183 silk reeling units in the district as on March 2001 and the total production of raw silk yarn stood at 1,950 tonnes. However the entire silk yarn is marketed at out side the state especially at Kancheepuram as there is no silk weaving centre in the district. Hence there is amble scope for silk weaving centres in the district at Shoolagiri, Hosur, Pennagaram, Kelamangalam and Dharmapuri blocks.

Besides this, the area under mulberry cultivation can also be increased to over 20,000 acres through concerted efforts. This provides scope for establishing number silk reeling units in the district.

MINERALS AND CHEMICALS BASED INDUSTRIES.

 23. Industrial Alcohol

The command area under sugarcane is around 18,800 hectares and the normal cane yield is nearly 1685 thousand tonnes in this district. The area is expected to grow further as during 1999-2000 sugarcane was cultivated in an area of 23,922 hectares. There are two sugar mills functioning in this district. Molasses available in these units are not completely used at present. They are being sent to neighbouring districts and even to Andhra Pradesh. This can be used for starting a unit for the manufacture of industrial alcohol.

Economic capacity : 500 M.T.

Investment : 75 lakhs

 24. Plastic Products and toys

There is a good scope for plastic goods and toys. From the Southern States Plastic goods and raw materials were exported during the year 97-98 to the extent of Rs.262.95 Crores. Exports from Tamilnadu alone amounted to Rs. 185.02 Crores. There was a slight set back in 98-99, which came down to Rs. 149.30 Crores. However, the export of some of the plastic products likes laminates, plastic moulded & extruded goods, lenses, PVC fabricated products, spectacle frames and toys has increased. Export of toys has increased from Rs. 2.54 Crores to Rs. 5.98 Crores in 98-99 and is expected to grow further.

 25. Mineral Water

Mineral water is different from ordinary potable water by its content of certain mineral salts and other constituents. Mineral water is obtained either through naturally occurring water sources or by fortifying the potable water with minerals. There has been an increasing trend in demand for mineral water because of the growing tourism industry and the regular usage of mineral water by general public due to the increasing health consciousness. The demand and supply gap is estimated to be around 7 crore litres per year.

Minimum Economic Unit size : 10,000 Lt. /day

Indicative Investment : Rs. 70 lakh

Krishnagiri and Hogennakkal are the ideal places for locating mineral water plants in the district.

 26. Drugs and Pharmaceuticals

India has the potential to emerge as a major production base for the global pharmaceutical market. It has a comparative advantage over the developed countries in this field due to the following reasons:

  1. We have a large pool of low-cost skilled professionals;


  2. the cost of setting up a plant in India is 40 % cheaper compared to the developing countries;


  3. the cost of bulk production in India is 60 % less compared to the cost in developed countries;


  4. Cheaper raw materials available for the Indian industry.
Dharmapuri district has the advantage of having large reserve of herbal products. It has the climate suitable for the cultivation of medicinal plants. The nearby international airport at Bangalore makes Hosur and Bargur suitable for starting units manufacturing drugs and Pharmaceuticals.

 27. Tartaric Acid

Dharmapuri district has vast area under tamarind. It constitutes the second highest area under tamarind after Dindigul district and accounted for 12.6 % of the out turn of Tamarind in the state.

Area under Tamarind : 2,272 Hectares.

Total Out turn of Tamarind : 8,180 Tonnes.

The tamarind pulp contains 13 % tartaric acid & Potassium bitartarate besides Pectin and fruit juice. Tartaric acid is used in the food processing industry, beverages and Pharmaceutical industry. Dharmapuri district offers scope for a unit manufacturing tartaric acid.

Technology source : National Chemical Laboratory.

MECHANICAL PRODUCTS

 28. Auto Conversion kit

Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) have been recognised as an alternative fuel for automobiles. Usage of is also under the consideration of the government. These fuels reduce air pollution. This provides good market scope for conversion kits, on-board storage cylinders, filling valve, pressure regulators, gas/air mixture etc. Cost efficiency of CNG and LPG vis-a-vis petrol is also attractive. Conversion kits for two wheelers can also be effective in view of the high vehicle population available. Aspiring entrepreneurs may have tie-up with the two-wheeler giant TVS Group for assured market.

 29.Safety Valves system for LPG-run vehicles

There is a good domestic market as well as export market from Australia for LPG cylinders with integrated safety valves for automobiles. The Government of India has approved usage of LPG as alternative fuel to automobiles. This offers a good market scope for the product in the domestic market.

LPG cylinder when used in vehicles can get warm especially when kept in the hot sun for extended periods. In such a situation the gas may expand. So, a safety valve to release the pressure formed in a controlled manner is a must. Further, a system to monitor the flow of gas from the cylinder to the engine and to cut the flow when there is excess supply of fuel should be installed to prevent any major disaster. In addition, another safety system to automatically cut off the supply of gas once the engine stops, is a must. All these provisions can also be integrated in the conversion kit.

 30. Aluminium Pressure Die Castings

Aluminium Pressure Die casting is best suited for the manufacture of parts of cars, motorcycles and scooters, electrical machinery, industrial machinery and aircraft industry. Items produced with this process are having very smooth surface and also excellent dimensional accuracy. There is good scope for industries using the process in Dharmapuri district.

Minimum Economic Unit size : 250 Kg /day

Indicative Investment : Rs. 72 lakh

 31. Textile Machinery Ancillary industries

As a Number of textile mills & machinery manufactures are located in Dharmapuri district, there is a high demand for machinery components like:

Industrial Pins like Collar Pins, Annular Pins, Roller Pins, Spring Pins, Headed Pins, Tensioning Pins, Drive Pins, Grooved Pins, Cyl. Pins, Cross Head Pins, Stepped pins & Tensioning Pins etc.

Plates like Pin plates, Guide Plates, End Plates, Switch Plates, Clamping Plates, Holding Plates, Threaded Plates etc.

Gauges Like Multipurpose Gauges, Protecter Gauges, Flat Gauges, Round gauges, Angle Jack Gauges etc.

Bushes - of different kind

Rods - of different kind

Washers - of different kind

Holders - of different kind

Needles - of different kind

Rings - of different kind

Levers - of different kind &

Gears - of different kind

Most of the above components are purchased either from other districts or from outside the state. Hence, it is felt that there is scope for stating units for the manufacture of the above components.

ELECTRONIC PRODUCTS & SOFTWARE INDUSTRY

 32. Electronic Toys

Electronic toy sector offers massive market potential. The industry is experiencing a revolution. According to the Electronics and Computer software Export Promotion Council (ESC) export of toys during 1998-99 was an impressive Rs.75 Crores compared to Rs. 1.57 Crores in 1991. Still, the share of India in the Global trade of toys is just 1 % only compared to the giant 50 % share held by China. Global trade in toys has increased by 66 % in the last six years and is currently estimated at over US $ 100 billion. The industry offers very high potential for development in the district. The district with its vast skilled manpower in electronic & software professional can reap the fruits in this sector.

 33. Software / IT Enabled services

Software / IT Enabled services offer wide scope for development with very high employment potential. According to a report released by Mckinsey-Nasscom groups the software market is expected to grow by 2008 to $ 87 billions with export market estimated at US $ 50 billion and the domestic market at US $ 37 billion. In 1998-99, export markets in these services provided employment to around 1000 people, which is expected to grow to 23,000 by the year 2008. These services include processing of credit card transactions, medical claims, loans, payrolls answering customer queries, providing information systems such as data centres, networks, medical transcription, legal database services etc. The industry is lucrative at the outset but needs utmost quality.

Even though the growth of this industry has fallen down considerably after the destruction of World Trade Centre in the U.S. A., the current slackness is considered to be temporary only. The Software and IT Enabled services industry is expected to pick up shortly.

Investment requirement for some of the services are given blow:

  1. Call Centres:

    Indicative Investment : Rs. 13 lakhs

    Rate of Return : 70 %


  2. b E-Commerce:

    Indicative Investment : Rs. 15 lakhs

    Rate of Return : 58 %


  3. Cyber Marketing:

    Indicative Investment : Rs. 15 lakhs

    Rate of Return : 52 %


  4. Medical Transcription:

    Indicative Investment : Rs. 56 lakhs

    Rate of Return : 100 %

OTHER INDUSTRIAL OPPORTUNITIES

 34. Granite Polishing - Export Oriented

Polished granite offers good market potential in the international market. Countries like Japan, Germany, United Kingdom, U.S.A. etc are the main markets for the product. Export of granite was to the tune of Rs. 1800 Crores in 97-98 against Rs. 1349.3 Crores in 1996-97 showing an increase of 33.4 %. Export to the U.S.A alone was around 24,000 tonnes.

Dharmapuri district has got high deposits of granite. High quality black granite is available at Pennagaram, Harur, and Palacode blocks. Grey granite is available at Krishnagiri and Pochampalli. Multi-colour granite is available at Denkanikottai.

Considering the availability of granite reserves and profitability in this industry it is felt that it is one among the suitable projects for this district.

 35. Gold Jewellery - Export Oriented.

According to the Gem & Jewellery export promotion council, India ENJOYS THE STATUS OF World leader in this field in the international market. India had exported diamonds worth $ 6.178 billion, Gold Jewellery amounted to $ 1.123 billion and coloured gemstones to $ 203.35 million during 2000-01. The export of Gem & Jewellery during 2000-01 was lower by 4.9 % compared to the previous year. But the Gold Jewellery sector had maintained a growth rate of 4 %. At present U.S.A is the major importer of these items from India followed by Hong Kong, Belgium, Japan and South East Asian countries. To tap newer area the Australian and European markets are being explored.

Diamond exports have been accorded a priority status in view of their potential. India accounted for 55 % (in value terms) of the world diamond market. There is ample scope to achieve the top level in the gold Jewellery sector also.

The Govt. of India has cut the customs duty on import of cut & Polished diamonds and Platinum from 40 % to 15 %. This would help the exporters in importing the required varieties of cut and polished diamonds for use as studding in Gold and Platinum jewellery.

It is estimated that the export of studded Jewellery may grow by over 10 %. during this year. The growth in the demand for these products provides scope for further development in this sector in the district.

The nearby international airport at Bangalore make the Hosur block ideally suitable for stating export oriented Gem & Gold Jewellery manufacturing units in this district. The district has skilled artisans whose services can be fully exploited. There is an industrial co-op society for Gem cutting and polishing at Bargur, which can ensure continuous supply of Polished stones to the Industry.

 36. Tourism based and Recreational Activities

Tourism and Recreational activities have not been provided the attention they deserve in this district so far. There are a number of important places in terms of tourism as well as worship in this district. These places not only offer entertainment and mental peace to the visiting public but also provide livelihood to the people engaged in trade and industry in these places. Tourism is a booming industry. It has good scope for assured returns. Prospective entrepreneurs, however, are yet to realise it’s full potential.

There is enormous scope for the development of tourism-based activities as well as recreational activities. Some of the activities suitable are providing for water games, rope-ways, theme parks, regular transport services to group of tourist places, hotel and restaurants etc. Places suitable for promoting such activities are Hogennakkal, Krishnagiri Dam and Dharmapuri.

Note: Detailed project reports for the above products are available at Small Industries Service Institute, Chennai. Aspiring entrepreneurs may contact SISI, Chennai.