Economy of Vellore

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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.[ citation needed ]

Contents

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.[ citation needed ]

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

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.LocationArea (in acres)
1SIDCO-Katpadi 19.480
2SIDCO-Ranipet 113.44
3SIDCO-BHEL 86.195
4SIDCO-Vannivedu16.44
5SIDCO-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. [ citation needed ] 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:

CompanyYear & FounderPlants/FactoriesEmployment
FARIDA Group [7] 1957 by Haji Mecca Abdul Majid Sahib127000+
KH Group [8] 1982 by Khizar Hussain47000
TAW1949 by T. Abdul Wahid & Co33400
NMZ1972 by N M Zackriah51800
Florence [9] 1979 by Aqueel Ahmed10 [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 tractors Trattori Same.jpg
SAME Deutz-Fahr tractors

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]

Precision tool industries

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]

Explosives industries

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]

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