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CHAPTER-III
Structural Characteristics· of Sample
Industrial Estates
3.1
Structural Characteristics
Estates in the NCR
of Sample
Industrial
3.1.1 Okhla Industrial Estate
3.1.2 NOIDA Industrial Estate
· 3.1.3 Rohtak (I.D.C.) Industrial Estate
3.1.4 Alwar (M.I.A.) Industrial Estates
3.1.5 Rozka Meo Industrial Estate
3.1.6 Loni Industrial Estate
3.2 Field Experience
3.3 Structural Characteristics of Sample Industrial Units
in the Industrial Estates
3.3.1 Distribution of Sample ndustrial Units
3.3.2 Registration and Age-Profile
3.3.3 Types of Organisation
3.3.4 Work Shifts
3.3.5 Types of Plant and l\tlachinery
3.3.6 Power Used and Working Capacity
99
3.3. 7 Profile of Entrepreneurs
3.3.8 Employment Size
3.3.9 Net Value Added
3.3.1 0 Capital Investment
3.4 Conclusions
100
CHAPTER-III
Structural Characteristics of Sample
Industrial Estates
3.1 Structural Characteristics of Sample .Industrial
Est~tes
The complex process of industrial development introduces changes
not only. in the quantitative characteristics like income, capital
accumulation, etc., but also in the organisation of production. In Chapters
1 and 2, a macro-analysis of the whole National Capital Region was
attempted. In this Chapter, the characteristics of the industrial units
functioning in the six sample industrial estates will be presented at the
micro level. The Chapter is divided into three sections. The first
section deals with the characteristics of sample industrial estates, the
second section deals with some of the problems faced in collecting data
and the last section is devoted to the analysis of the characteristics of the
units surveyed. Before we begin the estate wise discussion it would be
appropriate to give a synoptic view of these estates. This is done in Table
3.0.
3.1.0 Status of Industrial Estate in the Sample Study Area in 1994
In all the sample industrial estates, except in Lo'ni, more than 70 per cent
of the functioning industrial units are small scale. NOIDA has the largest
share in the total number ofindustrial units located in the sample industrial
estates in the NCR selected for this study. Out of the total 5580 industrial
units in the sample industrial estates, NOIDA has 78.87 per cent,i.e., 4401
industrial units out of which 94.93 per ent units are in the small scale
category. This is the highest share followed by Okhla which has 93.39 per
cent.
101
TABLE 3.0 .STATUS OF
~DUSTRIAL
ESTATES IN THE SAMPLE STUDY AREA IN 1994
Industrial Estates
OKHLA
NO IDA
ROHTAK
ALWAR
ROZKA-MEO
LON I
Year of establishment of the
Industrial Estates
1968-69
1976
1971
1971
1979
1960
Total number of plots
1083
5975
205
590
211
105
Number of plots alloted
883
5675
160
502
201
79
Number of industries
established
807
4981
155
411
70
55
740
4636
ISO
352
40
50
Number of SSI units in
operation
695
4401
130
289
30
35
Perecentag of SSI units in
operation
93.39
94.94
86.67
82.10
75.00
70.00
Percentage share of SSI
units in the Sample Estates
12.50
78.87
02.33
05.18
00.54
00.63
Number of industries in
operation
.
Source:
All Disricts Industrial Centres
ii. Commissioner of Industries (Delhi)
iii. Delhi Development Authority
iv. Delhi State Industrial Development Corporation
v. Haryana State Industrial Deveopment Corporation
vi. Haryana Urban Deveopment Authority
vii. Rajasthan State Industrial Deveopment and Investment Corporation Ltd.
viii. Rajasthan Financial Corporation
ix. Small Scale Industries
i.
0
>
Total
5580
100.00
3.1.1 Okhla Industrial Estate
The Okhla Industrial Estate is located in the south-eastern part of
Delhi and was established in 1968-69. It is considered to be one of the
biggest and the oldest of its kind in India. It is one of the twelve
industrial estates that were sanctioned in the First Five Year Plan. The total
area earmarked and developed by Delhi State Industrial
Development
Corporation was 759 acres, the average size of a plot being 0.38 acre.
The total number of sheds or plots occupied is 1996.- A wide variety of
products are manufactured here.
The surrounding industrial areas are Mohan Singh Industrial Area,
Govindpuri, Kalkaji, Tughlakabad and Badarpur Border, where more than
a thousand units are working.
Mohan Singh Industrial Area has a total
area of 65.63 acres and plots are allotted to 349 entrepreneurs. Here, all
the units are functioning and large
variety
of goods is produced.
Govindpuri and Kalkaji are specialising in Garments and Packing industry.
In the flatted factories in Okhla several facilities are being provided to
the units, like subsidised rent, water, electricity, absence of property tax,
ward and watch facilities, etc. Some basic training programmes are run
through PHD Chambers, HARDICON and
Small
Industries Service
Institutes. Loan is available at low interest rates and extra facilities are
given to
export oriented units.
Okhla industrial estate was initially
established under the Twenty Point Programme to provide the selfemployment
opportunities
to
the
unemployed
graduates. These
unemployed graduates were given several facilities ranging from training
to financial facilities. In Okhla, training facilities are being provided by
government-run
as well as private training centres.
Sometimes
government departments also organise special training programmes so
that the entrepreneurs are updated in their productive skills and thus
produce quality and competitive products.
102
3.1.2 NOIDA Industrial Estate
It is situated to the east of Delhi across the Yamuna river and is
contiguous to Delhi. NOIDA was created to provide a proper climate and
atmosphere for housing more than five thousand small scale industrial units
in
1971. The total eannarked area is 2432.95 acres, out of which only
19 15 acres have been developed so far.
The remaining area will
be
developed by 201 I. The total number of plots or sheds developed are
5975, having an average size of 0.32 acre.
At present only 5925 plots
and sheds are under occupation. Sector number sixteen in NOIDA is
called "Electronic City". Most of the 1arge and medium units are located
in Phase II. NOIDA has strong transport linkages with Delhi. National
Highway No. 24, on which it is located, links
major cities between
Ghaziabad and Calcutta and the proposed 100 metres wide Express Way
would link, via Faridabad, the other major cities, such as Bombay and
Madras.
Besides these linkages there is also scope of physical
expans1on. Proximity
to
Delhi's
market,
excellent
infrastmcture,
availability of skilled labour and backward and forward linkages of
industries are its main advantages. The setting up of the New Okhla
Inrlustrial Development Authority (NOIDA) in 1976 is an experiment in
developing a modem
township
under
the Uttar Pradesh Industrial
Development Act. This 1s a new inte!:,rrated industrial township of its
kind, accommodating both large and
medium or small scale industrial
units. The township has been set up with a strong industrial base along
with commercial, institutional, recreational, residential and
public
amenities.
In NOIDA, there are industries of all kinds covering manufacturing
and service sectors.
Ready-made
Gannents, Electrical machine
apparatus, Electric goods, Paper products, Printing, Plastic and Rubber
103
and Metal and Metal & Metal products are mainly in the small scale
sector. Electronic
products, BPL, Hotline, Videocon, Uncle
Chips,
Panprag and Food products are the major industrial units in the large and
medium sector.
The complex consists
of a combination
of small,
medium and large industries. The Export Processing Zone in Phase II
of NO IDA is also functioning very well.
The Uttar Pradesh State Govemment has opened Industrial Training
Institutes (I Tis) to meet the
trained man-power
requirement
of all
industries. NOIDA has a proper power sub-station of 132 KV. Single
Window System has been introduced in this township facilitating faster
decisions. Institutions like PICUP, UPFC, UPSIDC
and Projects and
Development are located in the township.
The
c~ntiguity
of NO IDA to Delhi gives tremendous encourageinent
to the industrial activities in this Estate. Being the
National Capital,
Delhi is already crowded industrially. Due to the restriction imposed by
the Delhi Development Authority on the establishment of new as well as
expansion of old industrial units, the industrialists prefer to select better
sites adjacent to Delhi.
104
3.1.3 Rohtak Industrial Estate (I.D.C.)
Industrial Development Colony (I.D.C.) in Rohtak was established
in 1971 . It is situated on the National Highway No.1 0, on Hissar Road. It
is 71 kilometers from Delhi. The total
area eannarked and developed
by the District Industrial Centre (DIC) is 63.45 acres. Total number of
plots or sheds are 205. Average plot size is 0.30 acre.
units are functioning in the estate.
At present 150
Major types of industries existing,
produce Mechanical, Chemical & Chemica] Products and Food Products.
Laksluni Precision Screws Limited is a large scale industry,
adjacent to I.D.C. It gives anciJiary work to approximately one third of
the industrial units of I.D.C.
105
3.1.4 Alwar Industrial Estate (M.I.A.)
Matsya
Industrial Area, twelve kilometer away
from Alwar is
located on Delhi-Alwar road, which is a State Highway:
com1ected with a
It is also
Alwar is 163 kilometer away
railway network.
from Delhi, 141 kilometer from Jaipur, 798 kilometer from Ahmedabad
and 1204 kilometer from Bombay. Inside M.I.A., banking, post office
and police station facilities are available.
The gross area acquired and developed by M.I.A. was 1768.25
It contains 590 plots or sheds but only 352 plots or sheds are
acres.
functioning while 502 plots or sheds are under occupation. Though the
industrial units are involved in the ,production ofa variety of products,
around
one third
industrial
units
are
producing
either Chemical
products or Mineral based products (marbles and granites).
Delhi-Alwar metre gauge railway line is being converted into broad
gauge and is being electrified.
With adequate power supply, the M.I.A.
estate can play an impor1ant role for future industrial development. In
addition, Delhi serves as an important outlet for the industrial produce
of the estate.
Rajasthan
Agencies involved in the development
State
Industrial Development,
of M.I.A.
Investment
are
Corporation
Limited (RIICO) and Rajasthan Financial Corporation(RFC).
Rajasthan
State
Industrial
Development
Corporation Limited plays a key promotional role.
and
Investment
Besides providing a
package of financial assistance to industries, it develops industrial areas
and allots land to all kinds of industrial units. Well developed land is
made available·by RIICO to entrepreneurs at very moderate prices. It also
provides a variety of technical inputs to entrepreneurs by way of technical
and managerial
services .
....
106
Rajasthan
Financial Corporation is the
other
agency
which
provides the loans at a low rate of interest. It gives a rebate of 20 per
cent on interest to new units if a project exports more than 25 per cent of
its production.
Rajasthan
State
Industrial
Corporation Limited and Rajasthan
Development
Financial
and
Investment
Corporation undertake
reconstmction programmes for reviving projects and also operate special
schemes with Industrial Reconstn1ction Bank of India (IRBI).
107
3.1.5 Rozka Meo Industrial Estate (Gurgaon)
Rozka Meo is in Sohna tehsil of Gurgaon district ofHaryana state.
It is situated on the State Highway leading to Alwar district of Rajasthan.
It is 48 kilometer from Delhi and II 0 kilometer from Alwar. Sohna is 3
kilom~ter
from Rozka Meo. It was established in 1979, originally as a
rural industrial estate like Loni. The total area earmarked by Haryana
Urban
Development
Authority
and Haryana State Industrial
Development Corporation is 642.83 acres.
sheds developed are
functioning.
goods.
2II. At
Total number of plots or
present only 30 industrial units are
The industries are producing a wide variety of industrial
Mechanical industrial units are the
largest occupants in the
estate. Rozka Meo is included affiong the 18 industrial estates where
Haryana Government is making an endeavor to provide uninterrupted
power supply to all existing units and new units having sanctioned
connected load up to 1 MW.
108
3.1.6 Loni Industrial Estate (Ghaziabad)
It is located 7 kilometer away from Shahadra and 12 kilometers
from Inter State Bus Tenninal (ISBT) of Delhi. It is situated on the major
road leading to Saharanpur. It was first established in 1960 and extended
later in 1978. The total area earmarked and developed is 25 acres.
plots
or sheds are I 01 but only 35 units are
Total
functioning. District
Industrial Centre (DIC) and Uttar Pradesh State Industrial Development
Corporation (UPSIDC) both
are engaged in 'the development of Loni
industrial estate.
Loni was originally a rural industrial estate developed under
District Industrial Centre and
ts
the
still identified as a rural industtial
estate. However, it is no longer mral in character. The industrial nnits
are producing wide varieties of products like Gannent and Chemical
and Mechanical products, etc. The present availability of power is not
sufficient to attract and feed more industrial units. Loni is a state owned
industrial estate where most of the units are declared sick due to lack of
entrepreneurial spirit and managerial caliber.
Many industrialists are
conve11ing their industrial units into commercial complexes.
109
3.2 Field Experience
A ten page questimmaire which has been provided in Appendix I
was personally administered to the entrepreneurs of the selected sample
units. I had to spend more than eight months in field investigations. If
an entrepreneur, proprietor or manager was not available for a number of
days or if he refused to respond, those industrial units were either
substituted by others
or~ dropped
altogether. The proprietors, managers
or entrepreneurs of some of the industrial units of Rozka Meo
and
Alwar industrial estates were not easily available on the estates, as many
of them visit their factory units once or twice a week. Since they were
very busy during these visits, . they preferred to be interviewed
Delhi, therefore,
they had to ·be approached in Delhi.
m
Besides
administering the questionnaire, some useful infonnation about the
industrial
estates
accommodated
and the problems of
m the industrial estates,
small
were
industrial units
also
noted down
separately.
As
industrial
units, either under either proprietorship
partnership genera11y do not publish their
annual
financial
or
statement
(balance sheet), the data collection was a serious problem. Most of the
entrepreneurs, when
convinced
connected with Govemment
industrial
that the
nor interested
interviewer was neither
m
closely
guarded
'secrets', responded well. However, some respondents even
then gave vague replies or at best -rough estimates. They were reluctant
to provide detailed statistical
infonnation
on capital,_ production and
income stmcture. Invariably, there was a tendency on the part of the
respondents to under-estimate their income and over-estimate their
expenditure
and to exaggerate their
operational
problems
and
difficulties . In some cases, there were apparent inconsistencies in the
110
data supplied by the respondents and they had to be visited again to
verify the data and to remove the inconsistencies.
In around ten
cases, the replies had to be rejected and other units were selected from
the sample industrial estates.
In the case of private limited companies and sometimes also in the
case of industrial units, the entrepreneurs, directors or managers were
reluctant to show their balance sheets. I had to then consult either the
bank from where the units had taken loan or the office where the units
had registered themselves.
for
The data collected in the questionnaire were
the accounting period ending 31st December 1994.
variables the period extended upto 31st
March
feasible to reconstruct the accounts to suit one
For some
1995. As it was not
accounting period, no
adjustments were made for differences in the accounting period.
3.3
Structural Characteristics of Sample Industrial lJnits
in the Industrial Estate
--
3.3.1 Distribution of Sample Industrial Units
The distribution of the three hundred industrial units by the major
industrial categories is given in Table 3 .I. Out of the fifteen industrial
groups which are
identified on · the basis of nature of products, the
maximum number of industrial units are in Mechanical and Chemical
industries i.e. 59 and 50 units respectively. The least number of sample
industrial units are in the Cement and Textile industry, i.e. 5 and 7
units respectively. In percentage terms Mechanical and Chemical units
together account for 35.34 per cent of the total sample units while Cement
and Textile 4 per cent only (see Figure 3.1 )..
Ill
Table 3.1 Industry-wise Distributi\on of Sample Units in the Selected Industrial Estates in 1994
I
I
I
N D
u s
T R
I A
L
C A
T E
G 0
R I
E S
lndust.-ial
Estates
CHE
ELE
GAR
MEC
PAC
ELT
PRJ
PLA
FOD
GLC
MIN
TEX
CEM
MET
MIS
ALL
Okhla
10
12
10
12
10
5
12
4
2
0
0
0
0
0
2
79
Okhla.l
5
6
5
(i
5
5
12
4
0
0
0
0
0
0
0
48
Okhla.2
5
6
5
6
5
0
0
0
2
0
0
0
0
0
2
31
NO IDA
8
13
0
12
0
13
0
5
10
10
0
0
0
II
0
82
Rohtak
12
0
0
14
0
0
I
4
3
0
0
0
0
6
0
40
AI war
13
0
0
5
0
0
0
0
5
0
20
0
5
0
2
50
Rozka Meo
2
4
0
10
()
0
0
4
0
0
0
2
0
0
3
25
Loni
5
0
0
6
0
0
0
3
0
0
0
5
0
0
5
24
TOTAL
50
29
10
59
10
18
13
20
20
10
20
7
5
17
12
300
%SHARES
16.67
9.67
3.33
19.67
3.33
6.0
4.33
6.67
6.67
3.33
6.67
2.33
1.67
5.67
4.0
100
Note: a. CHE=CHEMICAL, ELE=ELECTRICAL, MEC=MECHANICAL, PAC= PACKING, ELE=ELECTRONIC,PRI=PRINTING,
PLA=PLASTIC.. FOD=FOOD, GLC=GLASS & CERAMICS, MIN=MINERAL, TEX=TEXTILE, CEM=CEMENT,
MET=METALLURGY, MIS=MISCELLENEOUS
h. Okhla. I =Okhla inside and Okhla.2=0khla outside
.
N
l
I
Sample Industrial Units
(Industry-wise)
20
18
~ 18
·c:
;:::)
0
·c
1
14
12
..& 10
....0
Ill
CD
L.
c
..c
B
8
Ul
1:-e
4
o~==~~~~~~~~~~~~~~~~~~~~~~~==~
CHE EU: GAR t.£C PAC El.T PRI PlA F'OO GlC ~ TEX CEiol MCT loiS
Industrial Categories
Fig. 3.1
3.3.2 Registration and Age Profile
Out of 300 industrial units investigated, 91 mlits (30 per cent) i.e.
less than one third of the total tmits were registered under the Shops and
Establishment Act and the remaining 209 (70 per cent) i.e. more than
two-third of the industrial units wefe registered under the Factory Act.
Most of the unit in Okhla and NOIDA are registered tmder Factory Act,
i.e. 72 and 84 per cent respectively (Table 3.2 and Figure 3.2).
So far as age-profile is concerned, about 4 7 per cent units (140
units) were only four years old at the time of investigation. About 41 per
cent m1its were 6 to 8 years old and only II per cent of the tmits were
either I 0 or more than 10 years old. Most of the units in Alwar are just
about 4 years old and none is more than 10 years old (86 per cent i.e. 43
units out of 50 units). In Rohtak, 68 per cent of the units are only 4 years
old (see Table 3.3 and Figure 3.3).
114
Table 3.2 Distribution of Sample Industrial Units: Nature of Registration
Industrial
Estates
Factory
Act
(I)
Shop&
Estb.Act
(2)
%Share
of(l)
%Share
of(2)
(3)
Okhla
57
22
79
72
28
NO IDA
69
13
82
84
16
Rohtak
26
14
40
65
35
AI war
29
21
50
58
42
Rozka Meo
16
9
25
64
36
Loni
12
12
24
50
50
All
Estates
209
91
300
70
30
Note : Estb.=Establishment
Total
Nature of Registration
(Estate-wise)
90~-------------------------------------------------------,
BO
70
Ul
Q)
B so
.c
Ul
so
Q)
1:11
,g 40
1:
e 3o
Q)
Q)
0....
20
10
Oldlld
NOOA
Ro~tak
Alw<:~r
Re.zktl !,jee.
l.ol'l
Sample Industrial E:stctes
j ~Factory Act
Fig. 3.2
(:·:·:·:·:-:l Shop & Eat.Act
AI
Ett<:~ti!S
Table 3.3
I
Distribution of Sample Industrial Units: Age Profile
I
A
G
E
p
R
0
F
I
L
E
I
I
Industrial
I<:states
4-Years
Old
6-Years
Old
8- Years
Old
10-Years.
Old
> JOYears
Okhla
27(34.18)
21(26.58)
16(20.25) .
10(12.66)
5(6.33)
79(100)
NOJDA
22(26.83)
31(37.80)
25(30.49)
4(4.88)
0(0.00)
82(100)
Rohtak
27(67.50)
5(12.50)
0(0.00)
2(5.00)
6(15.00)
40(100)
Alwa1·
43(86.00)
1(2.00)
5(10.00)
1(2.00)
0(0.00)
50(100)
kozka Meo
11(44.00)
6(24.00)
5(20.00)
3(12.00)
0(0.00)
25(100)
Loni
10(41.67)
6(25.00)
2(8.33)
0(0.00)
6(25.00)
24(100)
All Estates
140(46,67)
70(23.33)
53( 17.67)
20(6.67)
17(5.67)
300(100)
Total
Old
Note: Figures, outside the parenthesis show number of industrial units and inside the
parenthesis show the percentage shares.
Age Profile of Industrial Units
(Estates-wise)
120
..,
100
ID
a
.£;
ao
Ul
~
0
1:
ID
~
so
40
~
20
Dkhlc:l
NOIOA
R6hlok
Alw.:sr
~!kd
IAao
L6nl
All Etolt~lu
Sample Industrial Estates
B(Z;l4 Yra Did
l!mlil 10 Yra Old
Fig. 3.3
t:::::::::::jt) Yra Old
fZZLl Above
10 Yra Old
~
B Yra Did
3.3.3 Type of Organization
A large proportion of the sample industrial units were functioning
tmder proprietorship (46 per cent of the total sample units i.e. 138 units).
Private limited and partnership units together accmmt for 48 per cent of
the industrial units. The share of private limited and partnership tmits is
26
per cent (i.e. 79 units) and 22
per
cent
tmits (i.e. 65 units)
respectively. Only 6 per cent units were operating under public limited ....
compames, i.e. just 18 units of the total sample units (Table 3.4 and
Figure 3.4 ).
In case of industrial groups, the Mechanical
industry
has the
highest number of units (i.e. 59 units). In this group, 28 tmits (i.e. 47 per
cent) are under proprietorship and 15 units
(i.e.
25 per cent) tmder
partnership. When this group is compared with all the industrial groups, it
ranks first in both proprietorship and partnership. In case of private
limited and public limited units, it is the Chemical industry which
ranks first in tenns of percentage with 21.52 per cent and 27.27 per cent
respectively (Table 3.5 and Figure 3.5). Although in tenns of total
number of units
amongst the fifteen industrial groups, the
Chemical
industry ranks second with 50 units.
119
Table 3.4
Distribution of Sample Industrial Units : Type of Organistion
TYPE
ORGA· NISA
OF
TION
Industrial
Estates
Prop.
Part.
Pvt.lid.
Pub.lid
Total
%of
%of
%of
%of
(1)
(2)
(3)
(4)
(5)
(1)
(2)
(3)
(4)
Okhla
24
21
31
3
79
30.38
26.58
39.26
3.78
100
a.Okhla.l
I8
13
15
2
48
37.50
27.08
31.25
4.17
100
h.Okhla.2
6
8
16
I
31
I9.35
25.81
51.61
3.23
100
NO IDA
47
l)
I9
7
82
57.32
10.98
23.17
8.54
100
Rohtak
25
12
I
2
40
62.50
30.00
2.50
5.00
100
AI war
21
16
13
0
50
42.00
32.00
26.00
0.00
100
Rozka Meo
6
3
10
6
25
24.00
I2.00
40.00
24.00
100
Loni
I5
4
5
0
24
62.50
I6.67
20.83
0.00
100
All Estates
138
65
79
18
300
46.00
21.67
23.33
6.00
100
Note: Prop.= Proprietorship, Part.= Partnership, Pvt.Ltd.= Private Limited, Pub.Ltd.= Public Limited,
Okhla.l = Okhla Inside, Okh1a.2 = Okhla Outside.
N
0
Total
Type of Organisation
(Estot-wlse)
so
~ 50
L.
_g
Ul 40
Q)
01
.!!c
30
Q)
0
L.
~ 20
10
Oknla
NDIDA
Ront~:~k
Alw~:~r
Rozktl flleo
lonl
All
Esl~:~les
Semple Industrial E:stctes
~ ~roprierorship j.:-:;:.:-:-:1 ~CJdnership
Fig. 3.4
~ ~vr.Ltd
HPub.Ltd
Table 3.5 Distribution of Sample Industrial Units According to Industrywise : Type of Organisation
Industrial
Categories
Prop.
Part.
Pvt.Ltd.
Pub.Ltd.
Total
Chemical
15
12
17
6
50
Electrical
14
2
10
3
29
Garment
0
4
5
1
10
Mechanical
28
15
11
5
59
Packing
8
1
1
0
10
Electronic
6
2
10
0
18
Printing
6
3
4
0
13
Plastic
9
6
5
0
20
Food
6
6
5
3
20
Glass & Cer.
<)
1
()
0
10
Mineral
10
9
I
()
20
Textile
2
()
4
I
7
Cement
5
()
()
()
5
i\ldallurgy
10
3
2
2
17
i\'liscellenious
6
I
4
I
12
All Industry
134
65
79
22
300
% Share
44.67
21.67
26.33
7.33
100.00
iote : Prnr.=Prorrietorship, Part.=Partncrship, Pvt.!Jd.=Privalc Ltd.
Puh.Ltd.=Puhlic Limited, Ccr.=Ccramics
'""'""'
Type of Organisation
(Industry-wise)
80
so
Ill
E
'-
'0
L:
....0
....
CD
30
..0
E
::J
z
20
C~£
EU:
GA.Ft
M£C
PAC
El.T
PRI
PLA
F'OQ
GU:
MIN
TO:
C£M
ME:T
MIS
Industrial Categories
I~ Proprietorship 1·:-:;:-:·:;:1 Partnership
Fig.
3.5
~ Pvt.Ltd
BmmPub.Ltd
3.3.4 Work Shifts
Almost all the sample units were perennial in nature. Out of 300
units surveyed, 246 (82 per cent) units operated one shift only, 41 units
(13.67 per cent) two shifts and only 12 units (4 per cent) operated three
shifts. One unit did not give a clear picture of its shift pattern.
The number of shifts operated in the different industrial estates and
industrial groups, is given in Table
3. 6
and 3. 7.
All
Packing,
Electronic and Metallurgical based industrial units work under one shift
only. AIJ other types of industria) categories worked more than one shift
except five Cement, three Chemical and one each of Plastic, Mineral and
Miscellaneous based units which were operating three shifts. Only the ·
Cement industry nms round the clock i.e. all the three shifts (see Figure
3.6 and 3.7).
124
Table 3.6
Distribution of Sample Industrial Units : Number of Shifts
NUMBER
"
SHIFTS
%of
%of
%of
%of
(1)
(2)
(3)
(4)
79
1.27
84.81
11.39
2.53
100
0
82
000
91.46
8.54
0.00
100
4
1
40
0.00
87.50
10.00
2.50
100
27
16
7
50
0.00
54.00
32.00
14.00
100
()
22
2
I
25
0.00
88.00
8.00
4.00
100
Loni
()
20
3
I
24
0.00
83.33
12.50
4.17
100
Total
1
246
41
12
300
0.33
82.00
13.67
4.00
100
No
Rsponse
One
Shift
Two
Shifts
Three
Shifts
Total
(1)
(2)
(3)
(4)
(5)
Okhla
1
67
9
2
NO IDA
()
75
7
Rohtak
0
35
AI war
()
Rozka Meo
Industrial
Estates
-.J
OF
Total
Number of Shifts
(E!tClte-wl!e)
100
90
···························
BO
....
II)
L
70
..c
(f)
so
II)
50
0
0>
0
c
II)
.4.0
0
'-
/:.
30
20
,0
0
DkhltJ
NDIOA
Rl)hl<»:
Alwor
Ro!ko
~
LM'
Tr.l"'
Sample Industrial E:statas
I[2ZI No Response 1-::::-::-:j One Sl-ift
Fig. 3.6
~ Two Shift-s
Bm!B Three
Shifts
Table 3.7
Distribution of Sample Industrial Units
Number of Shifts
%of
%of
%of
%of
(1)
(2)
(3)
(4)
50
0.00
72.00
22.00
6.00
100
0
29
0.00
100.0
0.00
0.00
100
5
0
10
0.00
50.00
50.00
0.00
100
52
6
I
59
0.00
88.14
10.17
1.69
100
()
10
0
()
10
0.00
100
0.00
0.00
I(X)
Electronic
I
17
0
0
18
5.56
94.44
0.00
0.00
100
Printing
0
12
1
0
13
0.00
92.31
7.69
0.00
I (X)
Plastic
0
17
2
I
20
0.00
85.00
10.00
5.00
I (X)
Food
0
13
7
0
20
0.00
65.00
35.00
0.00
100
(;Jass & Cer.
0
10
0
0
10
0.00
1(X)
0.00
0.00
I (X)
Mineral
0
14
5
I
20
0.00
70.00
25.00
5.00
100
Textile
0
6
I
0
7
0.00
85.71
14.29
0.00
I(X)
Cement
0
0
0
5
5
0.00
0.00
0.00
1(X)
I (X)
Metallurgy
0
14
3
0
17
0.00
82.35
17.65
0.00
I (X)
Miscen.
0
11
0
1
12
0.00
91.67
0.00
8.33
100
All Industry
1
246
41
12
300
0.33
82.00
13.67
4.00
100
No
Re!>pon!>e
One
Two
Shift!>
Three
Shifts
Total
Shift
(1)
(2)
(3)
(4)
(5)
Chemical
0
36
II
3
Electrical
0
29
0
Garment
0
5
Mechanical
0
Packin~
Industrial
Categories
Note: Ccr.= Ceramic, Miscen.= Miscelleneous
Total
Number of Shifts
(Industry-wise)
120
100
Ill
CD
1...
c
L
BO
(/1
CD
Ol
0
80
c
CD
(.)
1...
4.0
CD
a.
20
CHE
EJ...[
I~ No
Fig. 3.7
t-.J
00
C:AR ~EI:
Response
PR1 PL.A roo C:U:: loiN
Industrial Categories
PAC El.T
1:·••:·:·:1 One Sl-ift
TO:
~Two Shifts
CW
~ET
t.15
!11mB Three
AU.
Sl-ifta
3.3.5 Type of Plant and Machinery
Out of 300 sample- units, 242 units had acquired exclusively
first hand plant and machinery (i.e. 80.67 per cent), six tmits (2 per cent)
had obtained second hand and 50 units ( 16.67 per cent) had both first hand
and second
hand plant
and machinery.
Alwar, Rohtak and Okhla
generally had first hand plant and machinery (98, 90 and 88 per cent
respectively).
There were two sample units which did
not provide
infonnation on this score. The detail is given in Table 3.8 and Figure 3.8.
In case of source of acquisition of plant
and machinery, it is
found that almost all had purchased it within India and very few tmits had
imported their machinery.
Some units
had purchased their plant and
machinery both from indigenous as weJl as from foreign markets.
1'10
Table 3.8
Distribution of Sample Industrial Units : Type of Plant & Machinery Used
First
Hand
Second
Hand
F&S
Hand
Total
(1)
(2)
(3)
(4)
(5)
Okhla
I
70
I
7
NO IDA
()
54
()
Rohtak
I
36
AI war
()
Rozka Meo
Total
% of
%of
%of
% of
(1)
(2)
(3)
(4)
79
1.27
88.60
1.27
8.86
100
28
82
0.00
65.85
0.00
34.15
100
()
3
40
2.50
90.00
0.00
7.50
100
49
I
()
50
0.00
98.00
2.00
0.00
100
()
19
()
6
25
0.00
76.00
0.00
24.00
100
Loni
()
14
4
6
24
0.00
58.33
16.67
25.00
100
All Estates
2
242
6
50
300
0.67
80.67
2.00
16.67
100
Industrial
Estates
No
Response
Note : F & S = First and Second
Type of Plant and Machinery
(Estate-wise)
120
100
....
II)
L.
0
BO
.£:
Ul
II)
0>
c
so
c
~
L.
LO
II)
Cl...
20
0
I~ No Response (:·-::1 F'irst Hood
Fig.
vJ
3.8
~ Second Hood
mmJ Both
3.3.6 Power Used and Working Capacity
As many as 248 units (82.67 per cent) out of 300 sample
industrial units were using electricity as well as generators as a source of
power supply.
Only
52
units (17.33 per cent) were dependent on
electricity alone (Table 3.9 and Figure 3.9).
In NOIDA and Okhla, almost all the units kept generators as
an emergency source of power (i.e.
98
per cent
and
96 per cent
respectively). Alwar is the only industrial estate where 60 per cent of
the industrial units were totally dependent on electricity as a source of
power supply and 40 per cent used generators as captive power.
In tenns of working capacity, quite a number of industrial units
(233 units i.e. 77.67 per cent) were utilizing 50 to 70 per cent of the
total installed capacity. There were 33 units (i.e. 11 per cent) which had
utilized
more
than
70 per cent of
their
total
installed capacity
Remaining 34 units (i.e. 11.33 per cent) were working below 50 per cent
of the total working capacity. In Okhla 23 per cent units ( 18 units) were
utilising more than 70 per cent of the installed capacity.
(Table 3.10
and Figure 3.1 0).
132
Table 3.9 Distribution of Sample Industrial Units : Nature of Power Used
POWER
USED
Industrial
Eatates
Electric
Ele & Gen
Total
(1)
(2)
(3)
% of
(1)
(2)
Okhla
3
76
79
3.80
96.20
100
NO IDA
2
RO
82
2.44
97.56
100
Rohtak
7
33
40
17.50
82.50
100
AI war
30
20
50
60.00
40.00
100
Rozka Meo
5
20
25
20.00
80.00
100
Loni
5
19
24
20.83
79.17
100
All Estates
52
248
300
17.33
82.67
100
Note : Elc
= Electric, Gen = Generator
%of
Total
Nature of Power Used
(Estate-wise)
·.·.·.·.·.·.·:.·.·.·.·.·.·.·.·.·.·.·.·.·.·.
All Estates K2~tZ:!!:ti~F:.:.:.:.:..:.:.:.:.:~:.:.:.:.:.:.:.;.:.7'"'.:.:.:.:..~~:.;.;.:.:.""fo:..:.:.:."'""'"f'"'""':.;.;.:.:.f"
......... ·.·.·.·.·.·.·.·...·.·.·.·.·.·.·.·.·.· ... ·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.-.·.·.·.·.·.·.-.· ·.·.·.·.·:.·.·.·.·.·.-.- ·.·.·.·.·.-.·.-.....................·.·.·.·... ·.·.·.·.·.·.·.·.·.·:.·.·.·... ·::u
R<)~!ak
NOIOA
Ql(hla
~·::·
~
0
,.,..,.,................,. ........ :· .. ·..... . ·........ ,. .. ,.,.,.........,. . .-.·· ............................................·. ·............,. .................
.................................................................................................................................................................................................................................
,0
20
30
.iO
SO
SO
70
80
PsrcsntaQ& Shares
\00 Electricity
Fig.
3.9
\::··::·~ E:ledy & Generator
90
100
Table 3.10
Distribution of Sample Industrial Units : Working Capacity Utilisation
WORK
lNG
50-70
(3)
CAPA
CITY
Above-70
(4)
Total
(5)
%of
UTILI
SATION
%of
(3)
%of
(4)
Total
(1)
% of
(2)
Industrial
Estates
Below-30
(1)
30-50
(2)
Okhla
7
4
50
18
79
8.86
5.07
63.29
22.78
100
NO IDA
0
2
70
10
82
0.00
2.44
85.37
12.20
100
Rohtak
2
3
35
0
40
5.00
7.50
87.50
0.00
100
AI war
0
8
39
3
50
0.00
16.00
78.00
6.00
100
Rozka
Meo
()
3
20
2
25
0.00
12.00
80.00
8.00
100
Loni
0
5
19
()
24
0.00
20.83
79.17
0.00
100
All Estates
9
25
233
33
300
3.00
8.33
77.67
11.00
100
2.31
10.64
78.89
8.16
100
Average
Shares
Working Capacity Utilisation
(Estcte-wlse)
90-------------------------------------------------------~
BO
··································
70
................................. .
Ill
01)
L.
so
U'l
so
.E
01)
0
., 40
c
01)
~ :30
If
20
1:
·········-········
·············~.
Old'lld
NOOA
Rontc:lk
Alwc:~r
Rozka Meo
Lonl
AU Eltc:~te•
Sample Industrial E:stales
I~ Balow
Fig. 3.10
:so
%
c:J :50-50
%
~ 50-70 %
amm Above
70 %
3.3. 7 Profile of Entrepreneurs
The profile of entrepreneurs in the sample industrial estates will
now
be
examined
in tenns of their educational qualifications
and
technical or managerial experience. Table 3.11 and Figure 3.11 presents
the distribution of entrepreneurs
by
their educational
qualifications.
More than 32 per cent of the entrepreneurs who had set up industrial
concen1s in the industrial estates in the sample had degrees, 32 per cent
had technical training, 26.33 per cent had diplomas and only 9 per cent
had passed their Senior School Certificate (S.S.C.). If we
look at
individual estates then we find that in case of Alwar 54 per cent of the
entrepreneurs had degrees which is 21
average for all Estates (i.e. 33o/o).
per cent more than the overall
In case of those with technical
training, the percentage is highest for Rozka Meo i.e. 56 per cent.
From
this distribution one can deduce
that
educated
were attracted to industrial estates in order to establish ·small
persons
industrial
concems. The distribution of the entrepreneurs by the professional
experience in the sample industrial estates is given in Table 3.12 and
Figure 3 .12. About one half of the industrial entrepreneurs i.e. 152 (50.67
per cent) had an experience of less than
3 years and 65 entrepreneurs
(2 I .6 7 per cent)· had prior experience of 3 to 7 years before opening
their units. Only 35 entrepreneurs ( 11.6 7 per cent) had experience of
more than 7 years at the
time
of starting
their
units.
Forty eight
entrepreneurs (6 per cent) had either no experience or did not respond.
NOIDA industrial estate had 56 units (68.29 per cent) where the
experience of the entrepreneurs was less than 3 years and there were
only 4 units (5 per cent) where the experience of the entrepreneurs was
137
Table 3.11
Distribution of Sample Industrial Units : Educational Qualification of Entrepreneur
EDUCA
TIONAL
QUAL I
TION
Industrial
Estates
s.s.c.
Degree
Diploma
Tech.
Total
% of
% of
% of
%of
(1)
(2)
(3)
(4)
(5)
(1)
(2)
(3)
(4)
Okhla
7
26
19
27
79
10.42
31.25
25.00
33.33
100
NO IDA
6
18
28
'30
82
7.32
21.95
34.15
36.59
lOO
Rohtak
3
15
8
14
40
7.50
37.50
20.00
35.00
100
AI war
8
27
11
4
50
16.00
54.00
22.00
8.00
100
Rozka Meo
0
5
6
14
25
0.00
20.00
24.00
56.00
lOO
Loni
3
7
7
7
24
12.50
29.17
29.17
29.17
100
All Estates
27
98
79
96
300
9.00
32.67
26.33
32.00
100
Note : S.S.C.= Senior Secondary School Certificate , Tech.=Technicl
\..J
00
FICA
Total
Qualification of Entrepreneurs
(Estote-wlse)
50~-------------------------------------------------------,
50
1·--·--·---·--·--·· f-·--··--·--·---·--·--··--·--·--·····--··--·--··
Ill
OJ)
;:; 4.0
..r:::
Ul
---------~
~
~ 30
0
c
e 20
....
OJ)
,__ ,
....
1----...... ........
.. ..
~
~-
..
....... .
1-- ..........
.....
1--"
OJ)
0..
10
.......
-------~
~
Ok~lcl
NOOA
......
]
~
Ro~tak
l
Alwor
1---
~:·
J::::
Rozko ~eo
Lon!
AI Estoll!ls
Sample Industrial E:states
I~ S.S.C
Fig. 3.11
;)
0
c:::J Degree ~ Diploma mmJ Techrical
Table 3.12 Distribution of Sample Industrial Units : Professional Qualification of Entrepreneur
PROF
ESS
IONAL
<3
Years
>7
Years
Total
(4)
(5)
No
Exp.
(1)
(2)
3-7
Years
(3)
Okhla
8
35
21
15
NO IDA
2
56
20
Rohtak
II
16
9
Industrial
Estates
QUAL I
FICA
TION
%of
%of
(1)
(2)
o/oof
(3)
(4)
79
10.13
44.30
26.58
18.99
100
4
82
2.44
68.29
24.39
4.88
100
4
40
27.50
40.00
22.50
--
··-
%of
--
10.00
.
Total
..
100
AI war
20
24
3
3
50
40.00
48.00
6.00
6.00
100
Rozka Meo
2
12
7
4
25
8.00
48.00
28.00
16.00
100
Loni
5
9
5
5
24
20.83
37.50
20.83
20.83
100
All Estates
48
152
65
35
300
16.00
50.67
21.67
11.67
100
Note : Exp. = Experience
Experience of Entrepreneures
(Estate-wise)
70~------------~-------------------------------------------.
so
································
~ !iO
6
.£
Ul 40
.,
IJ)
.Ec
30
IJ)
0
L
rf
20
, 0
t·············
·············~
0
Okhlo
NOOA
Roh!ok
Alwor
So~le
IKXX;l No Experience EZJ Below 3
Fig. 3.12
Ro:OOI !.leo
AI Et+at.~t
Lori
Industrial E:sloles
Years ~ 3-7 Years
H
Above 7 Yeara
more than 7 years.
It is only in the Okhla industrial estate that 15 units
i.e. 44 per cent had entrepreneurs with experience of more than 7 years.
From the above observation one can infer that quite
number of entrepreneurs seemed to have established
a
good
their industrial
units after gaining some professional experience.
L1'"J
3.3.8 Employment Size
On an average one industrial unit provided employment to
skilled workers,
8 tmskilled workers
and
11
3 administrative staff
(managerial, supervisor, clerical and other staff), making altogether 22
workers.
As per the Half Yearly Progress .Report for the Industrial
Estates in India62 for the period ending 31st March, 1972, the average
nwnber of persons employed per industrial unit was 18.
Table 3.13 &3.14andFigure3.13& 3.14 show theestate-wise
and industry-wise average employment figures of sample tmits in 1994 in
tenns of three
maJor
categories, namely, skilled workers, unskilled
workers and administrative staff.
In quite a few cases, the respondents, it is feared,
failed
to
distinguish
~ight
between skilled and unskilled workers.
have
The
category of semi-skilled workers also created a problem as it is quite
ambi_guous.
Taking employment as the criterion of size, it could be
inferred from the above Table that Okhla has the largest number of
persons employed per industrial unit i.e. 27. Rozka Meo, though, a ntral
estate in character, employed 24 persons per unit while Loni only 18. In
case of NO IDA and Alwar, the number of persons per unit was 21 each.
Among different industrial groups, the
Printing industrial w1its
were relatively small sized, employing on an average only 12 employees
per unit. It was the Cement industrial units which were employing on an
average the maximum number of workers i.e. 72 persons per unit. Next
stood
62
the
Gannent industrial units with
53
persons
per unit.
Ministry oflndustry ( 1973 ), "Industrial Estates in India" Development
Commissioner, Small Scale Industries (Economic Investigation Division),
Ministry of Industry), Nirman Bhawan, New Delhi.
143
Table 3.13
Industrial
Estates
Average Employment Size Per Sample Unit : Type of Workers
Skid.
(I)
WORK
ERS
Unskld.
Admi.
(3)
(2)
TYPE
Total
Avg
Avg
(4)
(~l
(~l
Avg
of
Avg
of"
(I)
(2)
(3)
(4)
Okhla
793
991
3X2
2166
10
13
5
27
NO IDA
72X
713
259
1700
9
9
3
21
Rohtak
146
385
78
609
4
10
2
15
AI war
320
59 X
112
1030
6
12
2
21
I ?X
319
95
592
7
13
4
24
Loni
!28
26X
44
440
5
11
2
18
All
Estates
2293
3274
970
6537
8
11
3
22
Rozka
M~o
Note: Skid.= Skilled, Unskld.= Unskilled, Admi.= Administrative
Avg = Av~ragc
Average Employment Size
(Estate-wise)
30~----------------------------------------------------------,
..-..
~
25
II)
.:Y.
'0
~ 20
.....0
0
315
II)
N
1/i
II)
10
.............."16ii'.;~- .••••••••••••••...
01
0
''-',
'-
II)
>
~
5
...... ,....... ._..._,
-._
_,,,. .
--
••••••••J!f4•.::,::~•o•oooooooooooooo••ooooooooo!...., , . , ,• •. ,•• ,.,. . . . . . f.~o~ooooooooooooooooooooooooooooooooooo~~~A-J!!.,,,,,,,,,,,,uoooooooooooo
~-----
•
Mol---~---~ -~o~~-------- -loH- ~- ~-
~-~-*-~-~
-~-~----- ------Mol
0~--.--------.-------,--------~-------r------~--------r-~
NOIOA
Rollldk
Alwdr
Rozkd ~
LonI
AI Esldtu
So~la Industrial E:stotas
~-· Sk111ed
Fig. 3.13
-•- A.dmiriatrativs -e- Total
Table 3.14
Distribution of Sample Industrial Units :Type of Workers
TYPE
OF
WOR
KERS
Industrial
Categories
Skid.
Unskld.
Adm.
Total
Avg
Avg
Avg
(1)
(2)
(3)
(4)
of(l)
of(2)
of(3)
Chemical
316
499
166
981
6
11
3
20
Electrical
225
260
99
584
8
9
3
20
Garment
193
260
105
528
19
23
11
53
Mechanical
438
714
175
1327
7
12
3
22
Packing
40
58
27
125
4
6
3
13
Electronic
135
168
79
382
8
9
4
21
Printing
70
66
23
159
5
5
2
12
Plastic
103
226
45
374
5
11
2
19
Food
11 I
223
59
393
6
11
3
20
Glass & Cer.
152
122
36
310
15
12
4
31
Mineral
86
153
32
271
4
8
2
14
Textile
53
100
18
171
8
14
3
24
Cement
Ill
225
26
362
22
45
5
72
Metallurgy
173
132
49
354
10
8
3
21
Miscelleneous
87
98
31
216
7
8
3
18
All Industry
2293
3274
970
6537
8
11
3
22
Total
Note: Skld.=Skilled, Unskld.=Unskilled, Adm.=Administrative, Avg=Average,Cer=Ceramics
Average Employment Size
(Industry-wise)
~
80,-----------------------------------------------------------,
~ 70
....
0
~
._ so
(!
~ !!.0
.......,
1i
40
~
30
E
>.
~
w 20
..
CD
0>
~ 10
~
CHE
ElE
CAR
~
PAC
ELT
PRI
PlA
roo
GLC
IAN
TEX
COA
Industrial Categories
i·• •Sk111ed
Fig. 3.14
-u-mkiled
-ME--
Admiriatrative -a- Total
~
Maximum number of skilled and unskilled labourers were also
employed by Cement industry followed by Garment industry. So far
as Administrative workers are concerned, it was Garment industrial units
which had employed the maximum, i.e. 11 persons per industrial unit.
Such figures have also been observed in other similar studies. 63
From Table 3.15 and Figure 3.15, it is observed that there were 70
per cent industrial units which had employed upto 20 workers and 23 per
cent units which had employed between 21 to 50 workers.
It is also
observed that only 7 per cent units had employed more than 50 workers.
If we look at the different industrial groups, 54 per cent (32 units)
of Mechanical industry had employed II to 20 workers per unit and 30
per cent (6 units) had employed more than 50 workers.
In
case of
Chemical industry, 26 per cent units ( 13 units) had employed upto I 0
workers and 30 per cent ( 15 units) had employed between 21
to 50
\Yorkers.
It had
Most
labour intensive was the
Cement industry.
employed more than 50 workers per unit in 80 per cent of the units.
63
AK. Jain ( 1982), "Industrial Estate in Uttar Pradesh" with Special Reference
to Meerut Region, Meerut University. Meerut, p.l38.
148
Table 3.15
Distribution of Sample Industrial Units : Employment Size
EMPLOY
< 10
Industrial
Categories
MENT
SIZE
11-20
21-50
>50
Total
Chemical
13
21
15
1
50
Electrical
3
19
6
1
29
Garment
0
2
6
2
10
Mechanical
11
32
10
6
59
Packing
2
8
0
0
10
Electronic
5
11
0
2
18
Printing
6
5
2
0
13
Plastic
5
10
4
I
20
Food
5
7
7
I
20
Glass & Ceramics
I
4
4
I
10
Mineral
6
13
I
0
20
Textile
2
2
2
1
7
Cement
0
0
I
4
5
Metallurgy
I
7
t)
()
17
Miscelleneous
6
4
2
0
12
All Industry
66
145
69
20
300
Percentage Shares
22.00
48.33
23.00
6.67
100.00
Note: Integers indicate nurnher of workers.
149
Size of Employment
(Nunnber of Persons)
0 (22.0%)
21-50 (23.0%)
Fig.
VI
0
3. 15
3.3.9 Net Value Added
The average net value added per industrial enterprise is given in
Table 3.16 andFigure3.16&3.17).
The average netvalue addedin
all the industrial estates is 29.27 · lakhs per year per unit. The average
net value added
is
the highest in the Okhla units (i.e. 50.42 lakhs)
followed by NOIDA with an average of 30.21 lakhs.
The least is
observed in Rohtak (11.55 lakhs).
If an inter-industry analysis is made, then the Cement industry is
on the top with an average net value added of Rs. 69.80 lakhs per year.
The next two in sequence are
Garment industry (3 7.45
(88.60 lakhs).
the Metal industry (44.16 lakhs) and
lakhs) besides the Miscellaneous category
The least value was observed the in case of Printing
industry i.e. only 6.99 lakhs. An abnonnal situation was observed in the
case of Miscellaneous industry, which account for more than three times
of the average value of all the industrial estates.
151
Table 3.16
Average Fixed Capital Investment and Net Value Added
per Sample Unit (in Rupees)
INDL.CAT.
p & M
PM & LB
NVA
INDL.EST.
p & M
PM & LB
NVA
CHE
1536493
2423617
3052778
Okhla
1875143
3004550
504188
ELE
1291198
1851159
3015462
Okhla.1
1274779
2208131
3475763
GAR
2010000
3720000
3744780
Okhla.2
2475506
3800968
6608013
MEC
1576354
2370247
2132114
NO IDA
1461971
2116539
3021581
PAC
1273248
1887019
2002649
Rohtak
1638250
2583250
1155199
ELT
1395481
1986404
3207423
Alwar
1919140
4258380
2449885
PRI
718787
1655838
699928
Rozka Meo
1750000
2598200
2262190
PLA
1960230
2699180
2105767
Loni
1106875
1625542
1390377
FOD
1999362
3409562
2649263
All Estates
1632046
2725311
2926936
GLC
1281050
1881050
2433010
MIN
2044300
2748850
1964888
TEX
1085714
1689714
1837552
CEM
4053000
20496400
6982626
MET
2484865
3605453
4416908
MIS
1004000
1497333
8859149
Total
1632046
2725311
2926936
Note: CHE=CHEMICAL, ELE=ELECTRICAL, GAR=GARMENT, MEC=MECHANICAL, PAC=PACKING, ELT=ELECTRONIC
PRI=PRINTING, PLA=PLASTIC, FOD=FOOD, GLC=GLASS & CERAMICS, MIN=MINERAL, TEX=TEXTILE,
CEM=CEMENT MET=METALLURGY MIS=MISCELLENEOUS PM= PLANT & MACHINERY LB=LAND & B'()ILDINGS
NVA=NET VALUE ADDED,INDL.EST.=INDUSTRIAL ESTATES, INDL.CAT.=INDUSTRIAL CATEGORY,
Okhla.1=0khla inside, Okhla.2=0khla Outside.
I
I
I
I
Average Net Value Added Per Unit
(Estate-wise)
All Ettotet
Ill
Q)
L.onr
"E
~
w
~
Ro~ka !Aeo
15
·c
~
"'0
AIWIS~
Q)
Roi'ltak
N>Mt
_!;
0..
E
0
(fl
NDIDA
Dki'lla
0
2
3
.4.
Net Value Added (in Rs.)
(~.jlllons)
Fig.
Vl
vJ
3.16
s
6
Average Net Value Added Per Unit
(industry-wise)
All IMd.
MIS
MET
~ ~
[~EM
C/1
01)
·;:
0
0>
"G)
0
u
0
·;:
1;
::::J
"C
£
rEx
MIN
GLC
ex.
)Ill:
FDD
PLA
PRI
ELT
PAC
IAEC
GAR
~
~
OCA.~
D0<::~'-"2\Jii
ELE
CHE
~
cx.
0
2
3
~
!!i
6
Net Value Added (in Rs.)
(MIII'OI'I~)
Fig. 3.17
7
8
9
3.3.10 Capital Investment
The average expenditure on the plant and machinery per unit is
16.32 lakhs.
The highest average was observed for Alwar and
the
lowest for Loni i.e. 19.9 and 11.07 lakhs respectively. If the cost of land
and buil'tlings is also added with plant and machinery, then the overall
average investment by the individual entrepreneur goes to 27.25 lakhs.
The highest investment per unit is once again in Alwar industrial units
and minimum in Loni industriaJ units
( 42.58 lakhs and 16.26 lakhs
respectively).
Industry-wise,
inve~tment
it
is in the
Cement
industry
where average
on plant and machinery as well as on land and buildings is
the highest i.e. 40.53 lakhs and 204.96 lakhs respectively. The lowest
is observed in Printing industry i.e. 7.18 lakhs on plant and machinery
and 16.56 lakhs on combined plant and machinery and land and building
(Table 3.16 and Figure 3.18 & 3.19).
All the cement industrial units of Alwar fall in the small scale category
because their investment limit is within 60 lakhs on plant and machinery.
This investment figure is supplied by the DIC, Alwar which is given in
Appendix 3.1 along with the names of these units.
155
Average Investment Per Unit
(Estote-wlse)
4.5
....
.-...
~
0::
3.5
c
:.:::-
c .....
r:::
II)
.E
Ill
II)
>
.s;
11
·o..
:;
Jii
2. 2.5
2
0
u
, .5
.... -....
-
............... .....
,.-·· .
----_,.
-...
.........................k.,.~ .. •·······················································"'"························r~·-···········
'-.. 'L ,. t~'-
..
,.
~
t-.OIDA
Rohi<:lk
Alwtlr
R6zktl
~e6
L6nl
Sampls Industrial E:stctss
I••• Flkrlt & Modinery
Fig. 3.18
-
.....
FI.M & Lond&Bu1din1J
AI Estates
Average Investment Per Unit
·
(Industry-wise)
::s
-
20
IIi
,.
..............................................................................................................."1'............................. .
I\
0!
c:
c
c
<I)
1S
<.J
\
.
J
'\
I
I
\
r
,
··································································································r········T························
10
J
]
·o.
0
I
,
1
E
t;;<I) ~
>
.&
I
I
r •'-···························
..................................................................................................................
'I
I
'
I
I
I
r
1
········································································································;·············l······················
.......
....
It'
--~~~-J
~
~
........
J
~~...
.... '---~~!.~!~-:~:::~
. •--... --~1!.,..-• '~~="'
....
~
~
~
~
~
-
illfrt
~
···-
~
~
I
"'
m
Industrial Categories
1-•Fig. 3.19
Plant & Macl-inery
••• P.M & Land&Buildin~
.. .-
.......... ..
/
....
~
~
\
~~~~
~
...
~
3.4 Conclusions
( 1). All the sample industrial estates are within a distance of
163 kilometres from Delhi and ,except for Rozka Meo, are well connected
with roads and railways with each other as well as with other economic
and conunercial centres of the country.
(2). In the National Capital Region almost all types of industries
are located. However, the largest share is of Mechanical and Chemical
industries which together account for 35.34 per cent of total sample units.
(3).
Two-thirds
of the sample industrial units
are
either
functioning under proprietorship or under partnership.
(4). Most of the industrial units (80 per cent)
have installed
brand new plants and machinery. There are a few units which have even
purchased their machineries from outside the country.
(5). About 70 per cent of the industrial units are registered under
the Factory Act and the rest under Shops
and Establishment Act.
More than 90 per cent of the industrial units are less than II years old
and 80 per cent units nm just one shift throughout the year.
(6). More than 80 per cent of the entrepreneurs had opened the
industria! units with
entrepreneurs
prior experience and more than 90 per
cent
had either degrees or diplomas or some technical
qualification. Thus, it is evident that educated persons were attracted by
the industrial estates to venture into small scale industrial production ..
(7).
Average
investment
per
industrial
unit on plant and
machinery and lands and buildings is the highest in Alwar (42.58 lakhs).
This is due to the Cement industry as in this industry land costs include
the cost of the mining land also.
158
•
(8). The average net value added was the highest in the industrial
w1its fimctioning outside the industrial estates (66.08
lakhs per year).
Among the estates NOIDA. had the highest average net value added
(30.21 lakhs).
In tenns of the industrial categories, the Printing industry had the
lowest net value added (6.99 lakhs) and the
Miscellaneous group of
industries had the highest average net value added (88.59 lakhs).
(9).
Each industrial unit in the sample industrial
estates
has
provided on an average, employment opportunities to 22 workers. The
two extremes were observed in the case of Printing and Cement units.
While Printing units were absorbing , on an average, just 13 workers, the
Cement units were absorbing 72 workers.
159
CHAPTER-IV
AGGLOMERATION AND
EXTERNAL ECONOMIES
4.1 Theoretical and Methodological Issues
4.2 Comparative Analysis of Estate Block and Nonestate Block.
4.2.1 Rate of Profit of Industrial Units.
4.2.2 Rate of Profit Based on Fixed Investment on Plant and
1\tlachinery.
4.2.3 Rate of Profit Based on Fixed Investment on Plant &
!VIachinery and Land & Building.
4.2.4 Rate of Profit of Industrial Groups.
4.2.5 Size of Firms and Rate of Profit.
4.3 Rate of Profit of Individual Industrial Estates.
4.3.1 Rate of Profit of Industrial Units
4.3.2 Investment on Fixed Capital.
4.3.3 Employment Size and Rate of Pt·ofit.
4.4 Conclusions.
160