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MICRO,SMALL AND MEDIUM ENTERPRISES IN ERODE DISTRICT
Erode district is one among the industrialized district
in Tamilnadu and it is fifth among the districts in
Tamilnadu as far as MSME concerned. There are 18011
registered SSI/MSME Enterprises as on 31.03.2011 in the
district. Cotton Textiles in this District dominate the
district at present. It accounts for 41.9% of the
registered MSME enterprises in the district. Next comes
to Hosiery & Readymade Garments industry, which is
accounting for 21.9% followed by food products with
17.2%
MSME’s Scale Industries are providing large-scale
employment next to Agriculture in this district. It have
played a vital role in the districts economy by
providing large scale employment opportunities at
relatively low capital cost, a wide entrepreneurial
base, easy dispersal of industries in rural areas and
concentration of certain industrial groups at specific
areas.
Area of Concentration
The following table shows that different type of
industries and their area of concentration. It may be
seen that food products are concentrated at Erode,
Perundurai beverages are concentrated in all the 3
blocks of Erode Taluk namely, Modakurichi, Erode &
Kodumudi. Cotton Textiles and Readymade Garments are
concentrate in Erode Taluk. Erode Taluk is also having
the maximum number of industries in Leather & Leather
Products, Non metallic mineral products apart from Food
Products. Next to Erode, Perundurai stands second in
Food Products, Cotton Textiles, Chemical & Chemical
Products and Transport Equipments.
Concentration of MSME
Small Scale Service & Business
Enterprises
Like the MSME Service sector has also grown considerably
in this district. There are 12683 Service Enterprises as
on 31.03.2011 in this District. Group wise number of
enterprises in this segment is given below.
MSME Service Enterprises as on
31.03.2011
DISPERSAL OF MSME
enterprises
The notable feature of the MSME sector is its
easy dispersal in wide areas. In Erode district, MSME
Enterprises are spread all over the district even though
concentration of the units can be seen in some of the
places. While Erode Taluk alone having 38% share of
MSME Enterprises, the surrounding taluks Perundurai,
Bhavani is having the share of 19%, 11.3%, respectively.
It can be seen that all of the above three taluks
namely, Erode, Perundurai, Bhavani. There altogether
having a share of 68% of the total MSME
enterprises. The remaining three taluks are having only
32%. The blocks like Thalavadi and Bhavani Sagar are
having the MSME enterprises less than 1%.
INVESTMENT LEVEL & EMPLOYMENT LEVEL
The total investment in plant & machinery in the MSME
sector in Erode District is Rs.58997.54 lakhs as on
31.3.2011. The average investment in plant & machinery
per Enterprises is estimated around 3.2 lakhs. The total
employment generated directly by the registered MSME
Enterprises in this district is 73919 persons, which
works out an average of 3 persons, per unit during 2010
- 2011.
Employment Generated & Investment in MSME Sector
From the above table it can be seen that Erode Taluk is
leading among other taluks in terms of number of
enterprises, investment level and employment. Erode
Taluk is having 38% of registered MSME units with 54% of
total investment level and 43% of employment in the
district. It is due to the concentration of cotton
textiles & readymade garments enterprises in this taluk
and their easy accessibility to the market. Next to
Erode, Perundurai Taluk is having 4123 number of
registered MSME enterprises with 8326.80 lakhs in
investment in plant & machinery and providing employment
to18491 person. Bhavani Taluk is having 2386
enterprises, with investment of 4263.79 Lakhs and
providing employment to 4432 persons.
In Gobi Taluk 2234 units are providing employment
to 8932 persons with investment of 5961.60 Lakhs.
Sathyamangalam Taluk is having 1244 registered MSME
enterprises, which is the lowest number of enterprises
in the district.
LARGE SCALE INDUSTRIES
There are 64 Large Scale Industries in this district.
Most of the Enterprises are cotton textiles. 31
enterprises are textile industries. The following table
shows the number of large scale enterprises product
wise.
No. of Large Scale Enterprises
in Erode District
Industrial Cooperative Sector
Various industrial cooperatives are promoted by the
Industries Department in this district to provide
employment and to up-left the economic condition of the
poor. At present there are 8 such industrial
cooperatives with a total membership of 565 numbers
operating in this district. Persons engaged in
particular activities are brought under one roof and
registered as cooperative societies by providing share
capital loans, procuring machineries, raw materials
required for the enterprises and marketing support by
the industrial cooperative wing.
Among 8 Industrial cooperative societies 4 are engaged
in production activities such as Engineering, Coir
products, Jute products, Textile products, Processing,
Printing and 3 are engaged in Auto Transport service
sector. One industrial cooperative society is engaged in
printing industry service sector.
COTTAGE INDUSTRIES
Cottage Industries are providing large scale employment
with low cost investment. In Erode District there is
7605
Major Cottage Industries as on 31.03.2011.
Handicraft
Units
Like cottage industries, handicrafts Enterprises are
also providing employment to the rural artisans. In
Erode District there are 5894 Enterprises providing
employment to 9734 person. The major types of activities
are furnished in the table.
Major Handicrafts Units As on 31.03.2011
MUNICIPALITY (URBAN)
BLOCK – WISE CONCENTRATION OF SSI/MSME
enterprises
IN ERODE DISTRICT AS ON 31.03.2011
BLOCK – WISE CONCENTRATION OF MSME
enterprises
IN ERODE DISTRICT AS ON
31.03.2011
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