Economy of Vellore explained

Vellore, located in Tamil Nadu, India, has a diversified economy, primarily based in leather processing, shoe manufacturing, automobile assembly, precision tool milling, explosive materials production, and the service industry.

The SIDCO and SIPCOT industrial parks, all vital in the Vellore economy, are located in Katpadi, Ranipet, Mukundarayapuram, Vannivedu, and Arakkonam. Clusters of leather factories are located in Ambur, Melvisharam, Vaniyambadi, and Ranipet.

Future developments include an electronics manufacturing cluster (EMC) and leather and information technology special economic zones.

Industrial Parks and Clusters

SIDCO

Tamil Nadu Small Industries Development Corporation, an undertaking of the government of Tamil Nadu, popularly known as SIDCO, was formed in 1972 to develop Tamil Nadu's industrial estates. This is a list of SIDCO installations in the Vellore region.^[1]

No.	Location	Area (in acres)
1	SIDCO-Katpadi	19.480
2	SIDCO-Ranipet	113.44
3	SIDCO-	86.195
4	SIDCO-Vannivedu	16.44
5	SIDCO-Arakkonam	56.240

SIPCOT

The State Industries Promotion Corporation of Tamil Nadu Limited (SIPCOT), was formed in 1971 to promote industrial growth in the state and to advance term loans to medium and large industries.^[2] The SIPCOT Industrial Complex, Ranipet Phase I, is located at Mukundarayapuram. Phase II & III are spread over an area of 730 acres and are located in Ranipet.^[1]

Leather Industry

Hundreds of leather and tannery facilities lie in and around Vellore, including nearby towns such as Ranipet, Ambur and Vaniyambadi. The Vellore district is the top exporter of processed leather goods in the country. Vellore leather accounts for more than 37% of the country's exports of leather and leather-related products (such as finished leathers, shoes, garments and gloves).^[3]

Electronics Manufacturing Clusters (EMC)

On 18 January 2014, the Brownfield Electronics Manufacturing Cluster (EMC) cluster was approved, making Vellore the first region in Tamil Nadu to develop such a cluster.^[4]

IT SEZ (Information Technology Special Economic Zone)

As per the policy directive of the Government of Tamil Nadu, ELCOT (Electronics Corporation of Tamil Nadu Limited) promotes IT Parks in Tier I and Tier II cities. Integrated information technology campuses consist of IT buildings as well as residential and social infrastructure facilities. These campuses are established with a Public-Private Partnership (PPP) in Vellore and other Tier II Cities.^[5] In December 2012, the then Chief Minister Jayalalithaa announced a feasibility study to build an IT park in Vellore.^[6]

Industries

Leather industries

The leather industry of the region contributes forms a major share of India's overall leather exports. There are several major leather factories located in Tamil Nadu, notably:

Company	Year & Founder	Plants/Factories	Employment
FARIDA Group^[7]	1957 by Haji Mecca Abdul Majid Sahib	12	7000+
KH Group^[8]	1982 by Khizar Hussain	4	7000
TAW	1949 by T. Abdul Wahid & Co	3	3400
NMZ	1972 by N M Zackriah	5	1800
Florence^[9]	1979 by Aqueel Ahmed	10^[10]	NA

Other major factories include Althaf Shoes,^[11] Bachi Shoes,^[12] Florind Shoes, IRBAZ Group,^[13] TMAR Group,^[14] Nibras Shoes and the SSC.^[15]

Automobile industries

Vellore has manufacturing units of international automobile and mechanical brands like SAME Deutz-Fahr, TVS-Brakes India, Mitsubishi, Greaves Cotton and MRF.

• SAME Deutz-Fahr India, part of the SAME Deutz-Fahr group of Italy, has their plant in Ranipet, Vellore. Manufacturers of tractors, engines, and agricultural machinery entered India in 2005 with an initial investment of INR 88 crores. It exports tractors in the range of 35-70 HP as well as components for engines and transmission. Production capacity was 6,300 tractors per annum in the year 2009. In 2008, the company exported 1,500 units to the US and Europe and set a target to double the figure the following year. The facility caters to markets in Sri Lanka, Bangladesh, and African countries.^[16] SAME Deutz-Fahr (SDF) India Group is planning to introduce the premium brand, Lamborghini, tractors in India. The group is also planning to make India its global production hub for engines and will move its global tractor engine production from Italy and Germany to the plant of its Indian arm, Same Deutz-Fahr India at Ranipet, Vellore.^[17] SAME Deutz-Fahr is planning to expand its production base in this plant. The plan is to get to 30-35 HP at the lower end and 80-100 HP at the upper range. Currently, the production capacity of this plant is 15,000 tractors per year, with plans to further increase this capacity.^{[18] [19]}
• Greaves Cotton, part of the Thapar Group, manufacture automotive engine (diesel and petrol engines for three- and four-wheelers), construction equipment gensets and farm equipment has their manufacturing unit at Ranipet, Vellore. Greaves Cotton and are planning to expand their construction equipment product range. This 1,700-crore multi-product company has signed a pact with Samil of South Korea seeking technical know-how for products such as stationary concrete pumps and boom pumps. The company is also planning to expand its diesel engine manufacturing capacity at this plant.^[20]
• Bavina Cars India Limited, has been allotted a 100-acre plot at Ranipet SIPCOT's SEZ for its hybrid electric car manufacturing facility at an investment of 300 crores^[21] with a capacity to produce 40,000 cars per year with technology support from Velozzi of the United States.^[22] This will be the second battery-powered car production unit in the country after Bangalore's Reva Electric Car.^[23] There are reports that this project has been on hold due to financial issues of the firm.

Engineering & manufacturing industries

Bharat Heavy Electricals Limited (BHEL), is an Indian state-owned integrated power plant equipment manufacturing company. Its Boiler Auxiliaries Plant (BAP) is located in Ranipet, Vellore. BHEL Ranipet has performed exceedingly well according to its executive director, as it has won the 'Best Productive Unit' trophy from among all the units of BHEL in 2012. This plant has clocked a turnover of 4,210 crores, with shop production crossing the 1 lakh tonne benchmark, also registering a profit before tax of 1,260 crores for the 2012 financial year. It has so far obtained 21 patents and 46 copyrights.^[24]

BHEL-Boiler Auxiliaries Plant, Ranipet is installing a 5 MW solar power plant which will cover the entire energy needs of the plant,^[25] also entering into an agreement with Mitsubishi Heavy Industries, Japan to manufacture and supply a flue gas desulphurisation system meant for removal of sulphur dioxide from flue gases.^[26]

ArcelorMittal Dhamm Processing Private Limited is a joint venture firm between the world's largest steel producing firm ArcelorMittal and Mumbai based Dhamm Steel for manufacturing steel components at an estimated cost of 100-crores at Ranipet, Vellore. It manufactures finished steel components for earth moving equipment manufacturers, construction and power industries.^[27]

• MRF Limited (Madras Rubber Factory limited) is an India-based company engaged in manufacturing, distribution and sale of tires for various kinds of vehicles ranging from helicopters to automobiles is located at Arakkonam, Vellore.^[28]

Precision tool industries

• Mitsubishi Heavy Industries India Precision Tools Limited (MHI-IPT), a subsidiary of Mitsubishi Heavy Industries, opened its plant in Ranipet, Vellore in 2007, doubling its production capacity in gear cutting tools.^[29] Products manufactured by MHI-IPT at this plant are Hobs, Shaping cutters, Gear Shaving cutters, Master Gears, Broaches and Rotary cutter.
• KRAMSKI Stamping and Molding India Pvt Ltd, a subsidiary of KRAMSKI GmbH headquartered in Pforzheim, Germany, produces precision metal and plastic integrated-component manufacturing company with automotive, telecommunications, electronics and medical applications is located on a 10-acre site at Erayankadu, about 16 km from the Vellore city on the Chennai-Bangalore National Highway, established at the cost of Rs.15 crore which is the lone Indian plant of this Germany based firm.^{[30] [31]} KRAMSKI, which has currently located its office in the Vellore Institute of Technology-Technology Business Incubator (VIT-TBI), has signed a Memorandum of Understanding with the VIT-TBI for soft launching of the company in Vellore.^[32] This plant being one among the two plants in Asia from KRAMSKI GmbH was inaugurated by Vellore Collector in the year 2009.^[33]

KRAMSKI Stamping and Molding India Pvt Ltd a leading manufacturer of electronic components has won two ELCINA-EFY (Electronic Industries Association of India-Electronics For You) awards. One award for being the Outstanding Electronics SME (Small and Medium Enterprise) of the Year Special Jury Award for its achievements by an Electronics SME in India in the medium company category for the year 2012–13, and the second prize in Excellence in Environment Management under the SME category (for a medium company) another award for the same year.^[34]

• TVS-Brakes India Sholingur's foundry division is located at Vellore-Sholingur to manufacture Permanent Mold Grey Iron castings with an installed capacity of 5,000 MTPA which later increased to 26,000 MTPA in the year 2005.^[35]

Explosives industries

• Tamil Nadu Industrial Explosives Limited (TNIE) is Asia's biggest explosives manufacturing company, located at Katpadi, Vellore. This is India's only government controlled explosives company. The company is headed by a senior Indian Administrative Service officer.^[36]

Service sector industries

Vellore is among the top medical destinations in the country due to the presence of the Christian Medical College & Hospital (CMCH). CMCH is located on Ida Scudder Road in the heart of the city and is Vellore's largest private employer, with a large floating population from other parts of India and abroad. The Government Vellore Medical College and Hospital (VMCH) is located at Adukamparai in Vellore. With the advent of hospitals such as Apollo KH Hospital in Melvisharam and Sri Narayani Hospital & Research Centre in Sripuram, medical tourism is rapidly growing.

'Naruvi Hospitals' is being built at a cost of 3300 million INR, a joint venture between vellore based 'Pearl Human Care' and Detroit-based Henry Ford Health System.^[37]

A new venture of Sri Narayani Hospital & Research Centre in Sripuram, Vellore, located in a swanky complex, Sri Narayani Aayurvedic Centre, was inaugurated by Union Minister of State for AYUSH Shripad Yesso Naik on August, 2019.^[38]

Notes and References

1. Web site: Industrial Parks in Vellore . District Industries Centre . 9 Feb 2014 . https://web.archive.org/web/20140223050030/http://www.dicvlr.in/estates.php . 23 February 2014 . dead .
2. News: SIPCOT History. tn.gov.in. 2012-10-30.
3. Web site: Activities and schemes operated by District Industries Centre, Vellore district. Vellore District Administration . 2013-07-07.
4. News: Brown Field Electronics Cluster approved . 18 January 2014. The Hindu.
5. Web site: IT Specific SEZ in Tier II Cities. Electronics Corporation of Tamil Nadu Limited (ELCOT) . 2013-07-07.
6. News: Jayalilathaa revives IT park plan in Vellore . https://web.archive.org/web/20140303165924/http://www.newindianexpress.com/states/tamil_nadu/article1388057.ece#.Uvig2NL7C8A. dead. 3 March 2014. 21 Dec 2012. Indian Express.
7. Web site: About Farida Group. Farida Group. 2014-02-10. https://web.archive.org/web/20140316104611/http://www.farida.co.in/faridagroup.php. 16 March 2014. dead.
8. Web site: About KH Group. KH Group. 2014-02-10. https://web.archive.org/web/20140209091159/http://khshoes.net/Aboutus.aspx. 9 February 2014. dead.
9. Web site: About Florence Shoes. https://web.archive.org/web/20140222024204/http://business.highbeam.com/665/article-1G1-100047009/italian-standardmade-india-florence-shoe-company-have . dead . 2014-02-22 . 2014-02-10.
10. Web site: Members Directory - Florence Shoes. Indian Shoe Federation. 2014-02-10.
11. Web site: Members Directory - Althaf Shoes. Indian Shoe Federation. 2014-02-10.
12. Web site: Members Directory - Bachi Shoes. Indian Shoe Federation. 2014-02-10.
13. Web site: Members Directory - IRBAZ Group of Companies. Indian Shoe Federation. 2014-02-10.
14. Web site: Members Directory - TMAR & Sons. Indian Shoe Federation. 2014-02-10.
15. Web site: Members Directory - SSC Shoes. Indian Shoe Federation. 2014-02-10.
16. News: SAME Deutz-Fahr to make Ranipet, Vellore its export hub . 5 March 2009. Business Standard.
17. News: Lamborghini tractors to soon roar in Indian fields . 21 April 2013. The Economic Times.
18. News: SDF to widen tractor range offering in India,to hike capacity . 8 Feb 2014. Business Standard.
19. News: Same Deutz-Fahr group to expand India facility. 5 March 2009. The Hindu.
20. News: Greaves Cotton mulls expansion of construction equipment products . 2 May 2012. The Hindu.
21. News: SIPCOT’s SEZ at Ranipet will play host to Bavina Cars India . 11 July 2009. The Hindu.
22. News: Bavina Cars India investing 300 crores at Ranipet SIPCOT's SEZ . 14 July 2009. The Hindu.
23. News: India to get second electric car plant. 7 Oct 2009. Thai Indian.
24. News: BHEL Ranipet is best productive unit. https://web.archive.org/web/20140222174737/http://ibnlive.in.com/news/bhel-ranipet-is-best-productive-unit/246253-60.html. dead. 22 February 2014. 7 April 2012. IBN Live.
25. News: Solar Plant in BHEL. https://web.archive.org/web/20140131071130/http://www.newindianexpress.com/states/tamil_nadu/Solar-Plant-in-BHEL-to-be-Commissioned-in-2-Months/2014/01/28/article2023965.ece#.UvjrYtL7C8A. dead. 31 January 2014. 28 January 2014. Indian Express.
26. News: BHEL-Ranipet unit in tech tie-up with Mitsubishi. 12 April 2013. Business Standard.
27. News: ArcelorMittal and Dhamm Steel form steel unit JV in Vellore. 25 Sep 2008. Steel Guru.
28. News: MRF unit to reach full capacity soon. 30 May 2009. The Hindu.
29. News: Mitsubishi opens news Plant in Ranipet. 9 August 2007. UNI. United News of India. Oneindia.in. https://web.archive.org/web/20200506213830/https://www.oneindia.com/2007/08/09/mitsubishi-opens-new-plant-in-ranipet-1186668188.html. 6 May 2020. live.
30. News: German company’s first Indian subsidiary coming up near Vellore. https://web.archive.org/web/20140223014638/http://www.hindu.com/2009/02/23/stories/2009022353100300.htm. dead. 23 February 2014. 23 Feb 2009. The Hindu.
31. Web site: KRAMSKI India, Vellore Plant.
32. News: German multinational firm to set up plant near Vellore. 20 Sep 2008. The Hindu.
33. News: German company unit inaugurated in Vellore. 7 July 2009. The Hindu.
34. News: Vellore-based firm bags two ELCINA awards. 25 Sep 2013. The Hindu.
35. Web site: Brakes India Foundry Division Official Website. Brakes India Limited. 2013-07-07.
36. Web site: Welcome to TNIEL. TNIEL. 2013-07-07. https://web.archive.org/web/20130611000734/http://www.tniel.net/inner.php?pagesv=contact. 11 June 2013. dead.
37. News: VNaruvi Hospitals’ in Vellore to give world-class health facility . Deccan Chronicle . 13 September 2016 .
38. News: VNaruvi Hospitals’ in Vellore to give world-class health facility . The Hindu . 13 August 2019 .