Major Industrial Clusters and their Specialisation in Tamil Nadu

Major Industrial Clusters and Their Specialisation in Tamil Nadu

Automotive Clusters

Chennai is nicknamed as "The Detroit of Asia" use because of its large auto industry base. Chennai is home to large number of auto assembly and component making firms. While there were a few domestic firms like TVS, TI Cycles, Ashok Leyland and Standard Motors earlier, in the post-reform period, several MNC firms like Hyundai, Ford, Daimler-Benz and Renault-Nissan have opened factories in the region. This in turn has attracted a number of component suppliers from foreign countries. Many local firms too cater to component production for all these firms.

Hosur is another auto cluster with firms like TVS and Ashok Leyland having their factories there. Coimbatore region is also developing into an auto component cluster.

Truck and Bus Body Building Industry Clusters

The Namakkal-Tiruchengode belt in western Tamil Nadu is known for its truck body building industry. Karur is another major hub with more than 50 units. Many entrepreuners were previous employees in a big firm involved in body building who came out to set up their own units.

Textile Clusters

Tamil Nadu is home to the largest textiles sector in the country. Because of the development of cotton textile industry since the colonial period, Coimbatore often referred as the "Manchester of South India". At present, most of the spinning mills have moved around the Coimbatore city. Tamil Nadu is the biggest producer of cotton yarn in the country.

Powerloom is however more widespread with Erode and Salem region too having a large number of power loom units.

Tiruppur is famous for clustering of a large number of firms producing cotton knitwear.

It accounts for nearly 80% of the country's cotton knitwear exports and generates employment in the range of over three lakh people since the late 1980s. It is also a major producer for the domestic market. Because of its success in the global market, it is seen as one of the most dynamic clusters in the Global South. While initially most firms were run by local entrepreneurs, at present, some of the leading garment exporters in India have set up factories here.1

Countries in the southern hemisphere are called Global South countries

Apart from body building, Karur is a major centre of exports of home furnishings like table cloth, curtains, bed covers and towels. Bhavani and Kumarapalayam are again major centres of production of carpets, both for the domestic and the global markets.

Apart from such modern clusters, there are also traditional artisanal clusters such as Madurai and Kanchipuram that are famous for silk and cotton handloom sarees.

Leather and Leather Goods Clusters

Tamil Nadu accounts for 60 per cent of leather tanning capacity in India and 38 per cent of all leather footwear, garments and components. Hundreds of leather and tannery facilities are located around Vellore and its nearby towns, such as Ranipet, Ambur and Vaniyambadi. The Vellore district is the top exporter of finished leather goods in the country. Chennai also has a large number of leather product making units involved in exports. There is another clustering of leather processing in Dindigul and Erode. The leather products sector too is a major employment generator.

Fireworks, Matches and Printing Cluster

Sivakasi region, once famous for its match industry has now become a major centre for printing and fireworks in the country. It is believed to contribute to 90% of India’s fireworks production, 80% of safety matches and 60% of offset printing solutions. The offset printing industry has a high degree of specialisation among firms with several of them undertaking just one operation required for printing. All these industries have their origin in the colonial period and at present offer employment to a large number of workers.

Electronics and Information Technology (IT) Clusters

After the economic reforms started in the early 1990s, the state has seen the entry of hardware and electronics manufacturers like Nokia, Foxconn, Motorola, Sony-Ericsson, Samsung and Dell making cellular handset devices, circuit boards and consumer electronics. They have all been set up in the Chennai region.

Information Technology Specific Special Economic Zones :

In order to make development more inclusive, Tier II cities such as Coimbatore, Madurai, Trichy, Tirunelveli, Hosur and Salem have been promoted as IT investment destinations apart from the Chennai region. To facilitate this, ELCOT has established ELCOSEZs (IT Specific Special Economic Zones) in the following eight locations:

• Chennai – Sholinganallur

• Coimbatore – Vilankurichi

• Madurai – Ilandhaikulam

• Madurai – Vadapalanji-Kinnimangalam

• Trichy – Navalpattu

Companies desiring to set up units in the state can avail themselves of the facilities provided in ELCOSEZs. The possibility of setting up ELCOSEZs in new locations will be explored based on demand and viability. (Map Information Communication Technology Policy - 2018–19)

• Tirunelveli – Gangaikondan

• Salem – Jagirammapalayam

• Hosur – Viswanathapuram