Tamil Nadu – Manufacturing Industries Notes

Tamil Nadu – Manufacturing Industries Notes

6. Tamil Nadu – Manufacturing Industries

Industry refers to the secondary type of occupation. It is the booming sector of Tamil Nadu. Tamil Nadu is ranked as third industrial state next to Maharastra and Gujarat. The act of converting the raw materials into finished and usable products is known as Manufacturing. A single manufacturing unit is termed as a Factory. Multiple units of same kind, which are spread over a larger area are termed as an Industry. Lakshmi Mills and Madura Coats are example of industrial units. About 34% of the state’s income comes from the industrial sector.

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Classification of Industries

Industries can be classified on the basis of:

a) Raw materials

b) Ownership

c) Capital involved and

d) Product

Classification on industries based on raw materials

An industry that uses agricultural products for manufacturing is termed Agro-based industry. Cotton textiles, sugar industry and food processing industries are Agro-based industries.

An industry that uses forest products as raw materials are known as Forest-based industry. Example: Paper and Pulp industry, Honey and Sandalwood product.

Industries using minerals for production are called as Minerals-based industry. Iron and steel industry, ceramics industry and cement industry are some of the mineral-based industries.

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Classification of industries based on ownership

A Private industry is one which is owned by an individual or a group of people. TVS Motors is one of the notable private industries of Tamil Nadu.

All Government-owned industries come under the Public sector. Tamil Nadu Newsprint Paper Limited (TNPL) is state owned public sector industry.

Co-operative sector is one which is owned by a group of co-operative members who supply the raw materials for that industry. Most of the sugar factories in Tamil Nadu are in the co-operative sector.

When and industry is functioning under the partnership of two organizations it is said to be Joint sector. The nuclear power station at Kudangulam near Thirunelveli is a joint sector between Indian Government and the Russian Government.

Classification of industries based on investment

The industry which has huge investment in terms of capital and infrastructure, along with huge labour and production are known as large scale industries. Iron and steel industry is an example for a large scale industry. A medium-scale industry is one that runs with investment of Rs. 10 million (1-crore) to Rs. 100 million (10-crore). A small-scale industry has been defined as the unit that has investment up to Rs.10 million (1-crore).

Small scale industrial units are those which are engaged in the manufacturing, processing or preservation of goods. Goods such as clothes, toys, furniture, edible oils and leather goods are produced by small scale industries.

A Cottage industry is one wherein vary little investment is involved. The family as a whole works without any paid labourers. Locally available raw materials are used to produce the handicrafts. Volume of production and cost of production are low. Mats from grasses, (Pattamadai mat) toys from wood, Palm leaf containers are unique examples of goods from cottage industries of Tamil Nadu.

Classification of industries based on products

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Consumer goods are those goods, which reach the consumers straight from the production unit. All perishable goods like food products and dairy products are examples of consumer goods.

Intermediate goods are products that are produced by another manufacturer. For instance, fabrics produced from cotton is an intermediate good, the clothing made from the fabric is a consumer good.

Basic goods are those goods which are produced on a large scale both for export and local consumption. For example: Iron and steel industry, chemicals and textiles.

Factors determining the location of Industries in Tamil Nadu

Location of industries in a particular place normally has many reasons for its localization. These reasons are the factors influencing the location of industries and are listed below:

  • Raw materials
  • Energy
  • Capital
  • Transport and
  • Market
  • Labour

Natural resources like water, minerals and energy resources determine the location of an industry. Textile industry, leather industry and paper industry require large quantities of water and so are located close to water and so are located close to water sources. Industries like the cement industry, ceramic industry, and petro-chemical industry are located very near to the source of the raw materials. Aluminium industry highly relies on electricity and are located near the power stations or places with adequate supply of energy.

Distribution of Major industries in Tamil Nadu

The Major industries of Tamil Nadu are Textile industries, Sugar industries, Paper industries, Leather industries, Cement industries, Electrical equipments, Automobiles, Information Technology, Tourism industry and soon.

Textile industry of Tamil Nadu

Tamil Nadu plays a major role in the Indian textile industry in terms of production and export of yarn, fabrics, knitwear and garments. Tamil Nadu contributes nearly 25% of India’s share in the export of cotton, yarns and fabric. Tropical climate, availability of raw materials, demand for cotton in market, power supply from numerous power projects and abundant cheap labour are favourable factors for widespread distribution of textile industries in Tamil Nadu.

Coimbatore, Pollachi, Udumalapettai, Thiruppur, Karamadai, Erode, Bhavani, Dindigul, Thirumangalam, Madurai, Palayamkottai, Papanasam and Theni are important centres for textile industry. Maximum unitsare concentrated in and around Coimbatore region. This is why Coimbatore region is known as “the Manchester of South India”.

Districts of Coimbatore, Thiruppur and Erode contribute much for the state’s economy; therefore, they are referred to as ‘Textile Valley of Tamil Nadu’. Thiruppur alone contributes 70% of export of knitwear of Tamil Nadu. Erode specializes in garments and bedspreads. The city of Karur is known as the textile Capital of Tamil Nadu.

Silk Textiles

Tamil Nadu occupies the fourth place in silk textile production in our country. Kancheepuram silk is unique in its quality and is known for its traditional value all over the world. Arani, Rasipuram and Thirubuvanam are other silk centres of Tamil Nadu. Sericulture Training Institute in Hosur trains farmers to adopt sericulture along with farm work to accelerate rural industrialisation. Mettur, Madurai, and Ramanathapuram are specialized areas for manufacturing synthetic clothes.

Sugar Industry

Tamil Nadu produces about 10% of total sugar in India. Suitable climate and soil, for high yielding varieties, continuous irrigation facility, good transport, marketing facility and regularized co-operative sector are favourable factors for the widespread sugar mills in the state. A majority of sugar units in Tamil Nadu are functioning under the co-operative sector. At present Tamil Nadu has 42 Sugar Mills, out of which 16 are under the co-operative sector, 3 owned by public sector and 23 as private mills.

Sugar factories are concentrated in Villupuram, Cuddalore, Vellore, Erode, Coimbatore, Thiruvannamalai, Thiruchirappalli, Thanjavur and Madurai districts. Jiggery, kandasari, and sugar are products from the sugar industry. The by-product bagasse (the crushed stem of sugarcane after extracting juice) is used as a raw material for paper industry. Tamil Nadu government has set up new integrated sugar complexes with different options of co-ethanal production, tissue culture lab, soil testing lab, fuel energy and bio-composting. Names of such units are given in the table.

Table: Distribution of integrated sugar complexes

Name of the Mills Taluk District
Kothari-Sathamangalam Ariyalur Ariyalur
Rajashree – Semmedu

Dharani – Kalaianallur



Sakthi- Modakurichi Erode Erode
Empee Sugars – Idaikal Ambasamudram Thirunelveli
Shree Ambika – Manjini Attur Salem
Dhanalakshmi Srinivasn- Udumbiyam Veppanthattai Perambalur
Bannariamman – Kolunthampattu Thandarampattu Thiruvannamalai

Food and Beverage Industry

Food and Beverage based industry flourish well in Tamil Nadu. Mango pulp is processed and exported. Instant food varieties and ingredients for cooking are manufactured and marketed locally as well as exported. Snacks items and biscuits are marketed on a large scale. Tamil Nadu with its long coastline offers opportunities for industries based on marine products.

Paper industry

Tamil Nadu stands second next to Andhra Pradesh in paper production in our country. The state produces about 12% of the paper in our country. Bamboo, grass, and Bagasse from sugarcane are raw materials for paper industry Soda, sodash, chlorine, sulphur, woodpulp, and plenty of water are other requirements for setting up of paper industries.

Pukkathurai in Kancheepuram district, Bhavanisagar, Pallipalayam, Pugalur, Paramathi, Vellore, Coimbatore, Nillakkottai, and Cheranmadevi are centres of paper mills in Tamil Nadu.

Tamil Nadu Newsprint and Paper Limited(TNPL) was set up with aid of World Bank in 1979 in Kakithapuram near Pugalur in Karur district. It is the largest producers of Bagasse based paper in the world with the annual consumption of bagasse terms 1 million tonnes per annum. It caters to the need of newsprint papers throughout Tamil Nadu. It produces 600 tonnes of newsprint paper per day. Other than newsprint, papers for telephone directory, computers, offset printing papers, copier machines are also produced and marketed by the TNPL.

Leather industry

Tamil Nadu accounts for 70% of national tanning factories and 60% export of India. Leather industry occupies an important place because of its wide dispersal, sizeable employment and export potential. Leather industry depends on cattle wealth. It is concerned with the treatment of raw pelt of animals to make them suitable for the manufacture of various articles.

The pelt of large animals and cattle are known as ‘hide’ and those of smaller ones like sheep and goats are called ‘skin’.

Tanning is a process of making leather, from the skins of animals, with the use of tannin, an acidic chemical compound. Tanning makes the skin become flexible, less water-soluble and more resistant to bacterial attack. Tannery is the term given to place where animal skins are processed.

If tanning is done with vegetative matter, it is known as vegetable tanning process. Vegetable tanned hide is flexible and is used for making furniture. If tanning is done with chemicals like chromium and fatty matter, it is known as mineral tanning process. Chrome tanning is faster than vegetable tanning and it produces stretchable leather which is excellent material for making handbags and garments.

Chennai, Vellore, Kancheepuram, Thiruvallur, Thiruchirapalli, Dindigul and Madurai districts have widespread centres for leather industry. Chennai, Vellore, Ambur, Ranipet, Vaniyambadi, Dindigul and Thiruchirappalli are the main centre’s of leather industry.

Cement industry

Tamil Nadu stands fourth in cement production. It accounts for 10% of the country’s cement production. Tamil Nadu Cements Corporation Limited(TANCEM) is wholly owned by the Government of Tamil Nadu and manufactures Ordinary Portland Cement(OPC) and Super Star Cement exceeding the requirements prescribed under the Indian standards. The new materials required for cement production are limestone, dolomite, gypsum, clay and coal. All of these are mined in Tamil Nadu. Major centres of cement industry are Sankari, Madukarai, Puliyur, Kunnam, Sendurai, Ariyalur, Dalmiapuram Manamadurai, Thulukapatti, Allankulam, Sankarnagar and Thazaiyuthu.

Automobile industry

Tamil Nadu earns 8% of its GDP from automobile industry. This industry contributes for about 21% of passenger cars, 33% of commercial vehicles produced in India. Chennai city is the base for 30% of India’s automobile industry and 35% of its auto components. This industrial supremacy has resulted in Chennai being known as the “Detroit of Southern Asia”.

Chemical industry

Chemical industry includes, production of chemicals, drugs, fertilizers, petrochemicals, soaps, detergents, cosmetics, medicines, synthetic rubber and plastics. Most of the chemical industries are clustered around Chennai(Manali), Cuddalore, Panangudi(Nagapattinam) and Thuthukudi. The notable chemical industries of Tamil Nadu are SPIC (Southern Petrochemical Industries Corporation Ltd) and Manali Petrochemicals Limited. SPIC is the largest producer of fertilizers in India and covers 12 states and caters to the customers through 4000 outlets. It produces around 2 million tons of fertilizers annually.

Pfizer pharmaceutical company and Dow Chemicals are important chemical units which have research and development facility in Chennai.

Electrical and Electronics Industry

Electronics is a growing industry in Tamil Nadu. Many major global telecommunications like the Nokia, Flextronics, Motorola, Sony-Ericsson, Foxcon, Samsung, Cisco, Moser Baer and Dell have chosen Chennai as their South Asian manufacturing hub. Products manufactured include circuit boards and cellular phone handsets.

Bharat Heavy Electricals Limited located at Thiruchirappalli is one among the six large units of India. It produces boilers generators and turbines used in the production of hydro-electricity.

Software Industry Infosys’ campus at Mahindra World City near Chennai

Tamil Nadu is the second largest software exporter (by value) in India. It has the leading BPO sector in the country next to Karnataka. Major national and global IT companies such as Verizon , Hewlett-Packed, IBM, Accenture, Ramco systems, Computer Sciences Corporation, Cognizant Technology Solutions, Tata Consultancy Services, Infosys, Wipro, HCL, Tech Mahindra, Polaris, Aricent, Mphasis Acme Technology Pvt Ltd., Convansys, Ford Information Technology, Xansa, iSoft, iNautix, Electronic Data System, Bally and many others have established their branches in Chennai.

India’s largest IT Park is in Chennai, jointly constructed and maintained by Ascendas India Ltd, a Singapore-based company engaged in providing business space solutions, with Tamil Nadu Industrial Development Corporation(TIDCO).

Other notable industries of Tamil Nadu

Perambur Integral Coach Factory (ICF) is the largest in Asia to produce railway coaches in Tamil Nadu. “Armoured Vehicles and Ammunition Depot of India”(Avadi) is about 23km northwest of Chennai. The Heavy Vehicles Factory produces battle tanks. Salem Steel Plant is a Public Sector company undertaken by the Government of India. Sivakasi is a big industrial centre in Virudhunagar district. It is world famous for its fireworks and safety match boxes. Sivakasi produces 90% of India’s fireworks. It is also known for offset printing. Sivaksi is known as ;Little Japan’. Neyveli, apart from the production of thermal power, has a fertilizer unit and a ceramic united attached to it. Thanjavur and Kumbakonam are specialized in the production of bronze statues and musical instruments.

“Tamil Nadu is the first State in the country to develop a well-defined Biotechnology Policy and to set up an All Women Biotechnology Park.

Chennai is second to Mumbai for its vibrant and innovative film industry.

Tourism industry

Tourism is considered as an industry because of its enormous potential in creating employment for a large number of people and for its substantial foreign exchange. Tamil Nadu’s tourism industry is the second largest in India, with an annual growth rate of 16%. Presence of ancient monuments, pilgrim centres, hill stations, a variety of natural landscapes, long coastline, along with rich culture and heritage makes Tamil Nadu the best destination for tour lovers.

Tourism in Tamil Nadu is promoted by Tamil Nadu Tourism Development Corporation(TTDC), a Government of Tamil Nadu undertaking. Health/Medical tourism which is part of tourism industry is hosted by the leading health care centres in Chennai.

State Industries Promotion Corporation of Tamil Nadu(SIPCOT) Limited, a fully government owned premier institution, established in the year 1972, has been a catalyst in the development of small, medium and large scale industries in Tamil Nadu.

In order to promote an industrial base for export, the state government has setup special regions as Special Economic Zones(SEZ). These regions have ample facilities for manufacturing. They are capable of attracting foreign investor, and aim at promoting trade at the international level. Tamil Nadu has set up SEZ in the following places: Sriperumpudur Industrial Park, Irungattukottai Footwear SEZ and Orgadam Industrial Growth Centre in Kancheepuram district, Ranioet Leather Sector SEZ, Perundurai Engineering products SEZ, Cheyyar Automobile/Auto Ancillary SEZ, and Gangaikondan Transport Engineering Goods SEZ.

Tamil Nadu Major Industrial Centres and Special Economic zones

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