CHAPTER-III
Structural Characteristics· of Sample Industrial Estates
3.1 Structural Characteristics of Sample Industrial Estates in the NCR
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. NO IDA 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
0
>
TABLE 3.0 .STATUS OF ~DUSTRIAL ESTATES IN THE SAMPLE STUDY AREA IN 1994
Industrial Estates OKHLA NO IDA
Year of establishment of the 1968-69 1976 Industrial Estates
Total number of plots 1083 5975
Number of plots alloted 883 5675
Number of industries 807 4981 established
Number of industries in .
740 4636 operation
Number of SSI units in 695 4401 operation
Perecentag of SSI units in 93.39 94.94 operation
Percentage share of SSI 12.50 78.87 units in the Sample Estates
Source: i. All Disricts Industrial Centres ii. Commissioner of Industries (Delhi) iii. Delhi Development Authority iv. Delhi State Industrial Development Corporation
ROHTAK
1971
205
160
155
ISO
130
86.67
02.33
v. Haryana State Industrial Deveopment Corporation vi. Haryana Urban Deveopment Authority
ALWAR
1971
590
502
411
352
289
82.10
05.18
vii. Rajasthan State Industrial Deveopment and Investment Corporation Ltd. viii. Rajasthan Financial Corporation ix. Small Scale Industries
ROZKA-MEO
1979
211
201
70
40
30
75.00
00.54
LON I Total
1960
105
79
55
50
35 5580
70.00
00.63 100.00
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 self-
employment 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
1 9 1 5 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. At present 150
units are functioning in the estate. 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: It is also
com1ected with a railway network. Alwar is 163 kilometer away
from Delhi, 1 41 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
acres. It contains 590 plots or sheds but only 352 plots or sheds are
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. Agencies involved in the development of M.I.A. are
Rajasthan State Industrial Development, Investment 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 Development and Investment
Corporation Limited and Rajasthan Financial 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. Total number of plots or
sheds developed are 2II. At present only 30 industrial units are
functioning. The industries are producing a wide variety of industrial
goods. 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. Total
plots or sheds are I 01 but only 35 units are 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 the
District Industrial Centre and ts 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 m
Delhi, therefore, they had to ·be approached in Delhi. Besides
administering the questionnaire, some useful infonnation about the
industrial estates and the problems of small industrial units
accommodated m the industrial estates, were also noted down
separately.
As industrial units, either under either proprietorship or
partnership genera11y do not publish their annual financial statement
(balance sheet), the data collection was a serious problem. Most of the
entrepreneurs, when convinced that the interviewer was neither
connected with Govemment nor interested m closely guarded
industrial '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. The data collected in the questionnaire were
for the accounting period ending 31st December 1994. For some
variables the period extended upto 31st March 1995. As it was not
feasible to reconstruct the accounts to suit one 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
N
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 CHE ELE GAR MEC PAC ELT PRJ PLA FOD GLC MIN TEX CEM MET MIS Estates
Okhla 10 12 10 12 10 5 12 4 2 0 0 0 0 0 2
Okhla.l 5 6 5 (i 5 5 12 4 0 0 0 0 0 0 0
Okhla.2 5 6 5 6 5 0 0 0 2 0 0 0 0 0 2
NO IDA 8 13 0 12 0 13 0 5 10 10 0 0 0 II 0
Rohtak 12 0 0 14 0 0 I 4 3 0 0 0 0 6 0
AI war 13 0 0 5 0 0 0 0 5 0 20 0 5 0 2
Rozka Meo 2 4 0 10 () 0 0 4 0 0 0 2 0 0 3
Loni 5 0 0 6 0 0 0 3 0 0 0 5 0 0 5
TOTAL 50 29 10 59 10 18 13 20 20 10 20 7 5 17 12
%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
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
I l ALL
79
48
31
82
40
50
25
24
300
100
~ ·c: ;:::)
0 ·c
1 ..& .... 0
Ill CD L. c
..c Ul
1:-e
20
18
18
14
12
10
B
8
4
Sample Industrial Units (Industry-wise)
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 1 0 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 Factory Shop& Total %Share %Share Estates Act Estb.Act of(l) of(2)
(I) (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 209 91 300 70 30 Estates
Note : Estb.=Establishment
Nature of Registration (Estate-wise)
90~-------------------------------------------------------,
Ul Q)
BO
70
B so .c Ul so
Q)
1:11 ,g 40 1: Q) e 3o Q)
0.... 20
10
Fig. 3.2
Oldlld NOOA Ro~tak Alw<:~r Re.zktl !,jee. l.ol'l AI Ett<:~ti!S
Sample Industrial E:stctes
j ~Factory Act (:·:·:·:·:-:l Shop & Eat.Act
Table 3.3 Distribution of Sample Industrial Units: Age Profile
I I A G E p R 0 F I L E I I Industrial 4-Years 6-Years 8- Years 10-Years. > JOYears Total I<:states Old Old Old Old Old
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)
Note: Figures, outside the parenthesis show number of industrial units and inside the parenthesis show the percentage shares.
.., ID
120
100
a ao .£; Ul
~ so 0 1: ID ~ 40 ~
20
Fig. 3.3
Age Profile of Industrial Units (Estates-wise)
Dkhlc:l NOIOA R6hlok Alw.:sr ~!kd IAao L6nl All Etolt~lu
B(Z;l4 Yra Did l!mlil 10 Yra Old
Sample Industrial Estates
t:::::::::::jt) Yra Old ~ B Yra Did fZZLl Above 10 Yra Old
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
N 0
Table 3.4 Distribution of Sample Industrial Units : Type of Organistion
TYPE OF ORGA· NISA TION
Industrial Prop. Part. Pvt.lid. Pub.lid Total %of %of %of Estates (1) (2) (3) (4) (5) (1) (2) (3)
Okhla 24 21 31 3 79 30.38 26.58 39.26
a.Okhla.l I8 13 15 2 48 37.50 27.08 31.25
h.Okhla.2 6 8 16 I 31 I9.35 25.81 51.61
NO IDA 47 l) I9 7 82 57.32 10.98 23.17
Rohtak 25 12 I 2 40 62.50 30.00 2.50
AI war 21 16 13 0 50 42.00 32.00 26.00
Rozka Meo 6 3 10 6 25 24.00 I2.00 40.00
Loni I5 4 5 0 24 62.50 I6.67 20.83
All Estates 138 65 79 18 300 46.00 21.67 23.33
Note: Prop.= Proprietorship, Part.= Partnership, Pvt.Ltd.= Private Limited, Pub.Ltd.= Public Limited, Okhla.l = Okhla Inside, Okh1a.2 = Okhla Outside.
%of Total (4)
3.78 100
4.17 100
3.23 100
8.54 100
5.00 100
0.00 100
24.00 100
0.00 100
6.00 100
so
~ 50 L.
_g Ul 40
Q)
01 .!! 30 c
Q) 0 L.
~ 20
10
Fig.
Type of Organisation (Estot-wlse)
Oknla NDIDA Ront~:~k Alw~:~r Rozktl flleo Semple Industrial E:stctes
~ ~roprierorship j.:-:;:.:-:-:1 ~CJdnership ~ ~vr.Ltd
3.4
lonl All Esl~:~les
HPub.Ltd
Table 3.5 Distribution of Sample Industrial Units According to Industrywise : Type of Organisation
Industrial Prop. Part. Pvt.Ltd. Pub.Ltd. Total Categories
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
'""'""'
Ill
E '-
L: .... 0 .... CD
..0 E ::J z
80
so
'0
30
20
Type of Organisation (Industry-wise)
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 ~ Pvt.Ltd BmmPub.Ltd
Fig. 3.5
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 OF SHIFTS
Industrial No One Two Three Total %of %of %of %of Total Estates Rsponse Shift Shifts Shifts (1) (2) (3) (4)
(1) (2) (3) (4) (5)
Okhla 1 67 9 2 79 1.27 84.81 11.39 2.53 100
NO IDA () 75 7 0 82 000 91.46 8.54 0.00 100
Rohtak 0 35 4 1 40 0.00 87.50 10.00 2.50 100
AI war () 27 16 7 50 0.00 54.00 32.00 14.00 100
Rozka Meo () 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
-.J
"
100
90
BO .... II) L
70 0
..c so (f)
II) 50 0> 0 c .4.0 II) 0 '- 30 /:.
20
, 0
0
···························
DkhltJ
Number of Shifts (E!tClte-wl!e)
NDIOA Rl)hl<»: Alwor Ro!ko ~ LM' Tr.l"' Sample Industrial E:statas
I [2ZI No Response 1-::::-::-:j One Sl-ift ~ Two Shift-s Bm!B Three Shifts
Fig. 3.6
Table 3.7 Distribution of Sample Industrial Units Number of Shifts
Industrial No One Two Three Total %of %of %of %of Total Categories Re!>pon!>e Shift Shift!> Shifts (1) (2) (3) (4)
(1) (2) (3) (4) (5)
Chemical 0 36 II 3 50 0.00 72.00 22.00 6.00 100
Electrical 0 29 0 0 29 0.00 100.0 0.00 0.00 100
Garment 0 5 5 0 10 0.00 50.00 50.00 0.00 100
Mechanical 0 52 6 I 59 0.00 88.14 10.17 1.69 100
Packin~ () 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
Note: Ccr.= Ceramic, Miscen.= Miscelleneous
t-.J 00
120
100
Ill CD 1... BO c
L (/1
CD 80 Ol 0 c CD (.)
4.0 1... CD
a.
20
Fig. 3.7
Number of Shifts (Industry-wise)
CHE EJ...[ C:AR ~EI: PAC El.T PR1 PL.A roo C:U:: loiN TO: CW ~ET t.15 AU.
Industrial Categories
I ~ No Response 1:·••:·:·:1 One Sl-ift ~Two Shifts !11mB Three 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
Industrial No First Second F&S Total % of %of %of % of Total Estates Response Hand Hand Hand (1) (2) (3) (4)
(1) (2) (3) (4) (5)
Okhla I 70 I 7 79 1.27 88.60 1.27 8.86 100
NO IDA () 54 () 28 82 0.00 65.85 0.00 34.15 100
Rohtak I 36 () 3 40 2.50 90.00 0.00 7.50 100
AI war () 49 I () 50 0.00 98.00 2.00 0.00 100
Rozka Meo () 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
Note : F & S = First and Second
120
100
.... II) L. BO 0
.£: Ul II) so 0> c c ~ LO L. II)
Cl...
20
0
Fig. 3.8
vJ
Type of Plant and Machinery (Estate-wise)
I~ No Response (:·-::1 F'irst Hood ~ 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 Electric Ele & Gen Total % of %of Total Eatates (1) (2) (3) (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
Nature of Power Used (Estate-wise)
·.·.·.·.·.·.·:.·.·.·.·.·.·.·.·.·.·.·.·.·.·. All Estates K2~tZ:!!:ti~F:.:.:.:.:..:.:.:.:.:~:.:.:.:.:.:.:.;.:.7'"'.:.:.:.:..~~:.;.;.:.:.""fo:..:.:.:."'""'"f'"'""':.;.;.:.:.f"
R<)~!ak ......... ·.·.·.·.·.·.·.· ... ·.·.·.·.·.·.·.·.·.· ... ·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.-.·.·.·.·.·.·.-.· ·.·.·.·.·:.·.·.·.·.·.-.- ·.·.·.·.·.-.·.-..................... ·.·.·.· ... ·.·.·.·.·.·.·.·.·.·:.·.·.· ... ·::u
NOIOA ~·::· ,.,..,.,. ............... ,. ........ :· .. · ..... . · ........ ,. .. ,.,.,. ........ ,. . .-.·· ............................................ ·. · ............ ,. ................ .
Ql(hla ~ ............................................................................................................................................................................................................................... ..
0 , 0 20 30 .iO SO SO 70 80 90 PsrcsntaQ& Shares
\ 00 Electricity \::··::·~ E:ledy & Generator
Fig. 3.9
100
Table 3.10 Distribution of Sample Industrial Units : Working Capacity Utilisation
WORK lNG CAPA CITY UTILI SATION
Industrial Below-30 30-50 50-70 Above-70 Total %of % of %of %of Total Estates (1) (2) (3) (4) (5) (1) (2) (3) (4)
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 () 3 20 2 25 0.00 12.00 80.00 8.00 100 Meo
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
Average 2.31 10.64 78.89 8.16 100 Shares
Working Capacity Utilisation (Estcte-wlse)
90-------------------------------------------------------~
Ill 01)
BO ··································
70 ................................. .
L. so .E U'l so
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 :so % c:J :50-50 % ~ 50-70 % amm Above 70 %
Fig. 3.10
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 per cent more than the overall
average for all Estates (i.e. 33o/o). 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 persons
were attracted to industrial estates in order to establish ·small 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
\..J 00
Table 3.11 Distribution of Sample Industrial Units : Educational Qualification of Entrepreneur
EDUCA TIONAL QUAL I FICA TION
Industrial s.s.c. Degree Diploma Tech. Total % of % of % of %of Estates (1) (2) (3) (4) (5) (1) (2) (3) (4)
Okhla 7 26 19 27 79 10.42 31.25 25.00 33.33
NO IDA 6 18 28 '30 82 7.32 21.95 34.15 36.59
Rohtak 3 15 8 14 40 7.50 37.50 20.00 35.00
AI war 8 27 11 4 50 16.00 54.00 22.00 8.00
Rozka Meo 0 5 6 14 25 0.00 20.00 24.00 56.00
Loni 3 7 7 7 24 12.50 29.17 29.17 29.17
All Estates 27 98 79 96 300 9.00 32.67 26.33 32.00
Note : S.S.C.= Senior Secondary School Certificate , Tech.=Technicl
Total
100
lOO
100
100
lOO
100
100
;)
0
Qualification of Entrepreneurs (Estote-wlse)
50~-------------------------------------------------------,
Ill OJ)
50
;:; 4.0 ..r::: Ul
~ 30 0 c OJ) e 20 OJ)
0..
10 -------~
Ok~lcl
---------~ , __ , .... ~
.... .. ..
.......
~ ] ~ NOOA Ro~tak
......
1·--·--·---·--·--·· f-·--··--·--·---·--·--··--·--·--·····--··--·--··
1----...... ........ ~- .. 1-- ..........
~ ....... . ..... 1--"
l J::::
1--- ~:· Alwor Rozko ~eo Lon! AI Estoll!ls
Sample Industrial E:states
I ~ S.S.C c:::J Degree ~ Diploma mmJ Techrical
Fig. 3.11
Table 3.12 Distribution of Sample Industrial Units : Professional Qualification of Entrepreneur
PROF ESS IONAL QUAL I FICA TION
Industrial No <3 3-7 >7 Total %of %of o/oof %of Total Estates Exp. Years Years Years (1) (2) (3) (4)
(1) (2) (3) (4) (5)
Okhla 8 35 21 15 79 10.13 44.30 26.58 18.99 100
NO IDA 2 56 20 4 82 2.44 68.29 24.39 4.88 100
Rohtak II 16 9 4 40 27.50 40.00 22.50 10.00 100 -- ··- -- . ..
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) ., .E 30 c
IJ) 0 L
rf 20
, 0 ·············~
0
t············· Okhlo NOOA Roh!ok Alwor Ro:OOI !.leo Lori AI Et+at.~t
So~le Industrial E:sloles
I KXX;l No Experience EZJ Below 3 Years ~ 3-7 Years H Above 7 Yeara
Fig. 3.12
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 a good
number of entrepreneurs seemed to have established their industrial
units after gaining some professional experience.
L1'"J
3.3.8 Employment Size
On an average one industrial unit provided employment to 11
skilled workers, 8 tmskilled workers and 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, ~ight have
failed to distinguish between skilled and unskilled workers. 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 the Gannent industrial units with 53 persons per unit.
62 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 Average Employment Size Per Sample Unit : Type of Workers
WORK ERS TYPE
Industrial Skid. Unskld. Admi. Total Avg Estates (I) (2) (3) (4) (~l
(I)
Okhla 793 991 3X2 2166 10
NO IDA 72X 713 259 1700 9
Rohtak 146 385 78 609 4
AI war 320 59 X 112 1030 6
Rozka M~o I ?X 319 95 592 7
Loni !28 26X 44 440 5
All 2293 3274 970 6537 8 Estates
Note: Skid.= Skilled, Unskld.= Unskilled, Admi.= Administrative Avg = Av~ragc
Avg (~l
(2)
13
9
10
12
13
1 1
11
Avg Avg of of" (3) (4)
5 27
3 21
2 15
2 21
4 24
2 18
3 22
Average Employment Size (Estate-wise)
30~----------------------------------------------------------,
..-.. ~ 25 II)
.:Y. '-0 ~ 20 ..... 0 0 315
II) N
1/i II)
10 01 0 '-II)
> 5 ~
.............. "16ii'.;~- .••••••••••••••...
''-', .. ---._ ...... , ....... ._ . .._, _,,,. ••••••••J!f4•.::,::~•o•oooooooooooooo••ooooooooo! .... ,,.,, •• ., •• ,.,. ..... f.~o~ooooooooooooooooooooooooooooooooooo~~~A-J!!.,,,,,,,,,,,,uoooooooooooo
~----- • ~-~-*-~-~ Mol---~---~ -~o~~-------- -loH- ~- ~- -~-~----- ------Mol
0~--.--------.-------,--------~-------r------~--------r-~ NOIOA Rollldk Alwdr Rozkd ~ Lon I AI Esldtu
So~la Industrial E:stotas
~-· Sk111ed -•- A.dmiriatrativs -e- Total
Fig. 3.13
-
Table 3.14 Distribution of Sample Industrial Units :Type of Workers
TYPE OF WOR KERS
Industrial Skid. Unskld. Adm. Total Avg Avg Avg Total Categories (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
Note: Skld.=Skilled, Unskld.=Unskilled, Adm.=Administrative, Avg=Average,Cer=Ceramics
Average Employment Size (Industry-wise)
80,-----------------------------------------------------------, ~ ~ 70 .... 0 ~ so ._ (! ~ !!.0 .......,
1i 40 E >. ~ 30
~ w 20 ..
CD 0>
~ 10
~ CHE ElE CAR ~ PAC EL T PRI PlA roo GLC IAN TEX COA ~
Industrial Categories
i·• • Sk111ed -u-mkiled -ME-- Admiriatrative -a- Total
Fig. 3.14
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. Most labour intensive was the Cement industry. It had
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 MENT SIZE
Industrial < 10 11-20 21-50 >50 Total Categories
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
VI 0
Fig. 3. 15
21-50 (23.0%)
Size of Employment (Nunnber of Persons)
0 (22.0%)
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 the Metal industry ( 44.16 lakhs) and
Garment industry (3 7.45 lakhs) besides the Miscellaneous category
(88.60 lakhs). 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
INDL.CAT.
CHE
ELE
GAR
MEC
PAC
ELT
PRI
PLA
FOD
GLC
MIN
TEX
CEM
MET
MIS
Total
Average Fixed Capital Investment and Net Value Added per Sample Unit (in Rupees)
p & M PM & LB NVA INDL.EST. p & M
1536493 2423617 3052778 Okhla 1875143
1291198 1851159 3015462 Okhla.1 1274779
2010000 3720000 3744780 Okhla.2 2475506
1576354 2370247 2132114 NO IDA 1461971
1273248 1887019 2002649 Rohtak 1638250
1395481 1986404 3207423 Alwar 1919140
718787 1655838 699928 Rozka Meo 1750000
1960230 2699180 2105767 Loni 1106875
1999362 3409562 2649263 All Estates 1632046
1281050 1881050 2433010
2044300 2748850 1964888
1085714 1689714 1837552
4053000 20496400 6982626
2484865 3605453 4416908
1004000 1497333 8859149
1632046 2725311 2926936
PM & LB NVA
3004550 504188
2208131 3475763
3800968 6608013
2116539 3021581
2583250 1155199
4258380 2449885
2598200 2262190
1625542 1390377
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 I MET=METALLURGY I MIS=MISCELLENEOUS I PM= PLANT & MACHINERY I LB=LAND & B'()ILDINGS NVA=NET VALUE ADDED,INDL.EST.=INDUSTRIAL ESTATES, INDL.CAT.=INDUSTRIAL CATEGORY, Okhla.1=0khla inside, Okhla.2=0khla Outside.
Vl vJ
All Ettotet
Ill L.onr Q)
"E ~
Ro~ka !Aeo w 15 ·c ~ AIWIS~
"'0 _!;
Q) Roi'ltak 0.. E 0 NDIDA (fl
Dki'lla
Fig. 3.16
~
N>Mt
0
Average Net Value Added Per Unit (Estate-wise)
2 3 .4.
Net Value Added (in Rs.) (~.jlllons)
s 6
C/1 01)
·;: 0 0>
"G)
0 u 0 ·;: 1;
::::J "C £
Fig.
All IMd.
MIS
MET [~EM
rEx
MIN
GLC FDD PLA
PRI
ELT PAC
IAEC GAR
ELE
CHE
0
Average Net Value Added Per Unit (industry-wise)
~ ~
ex. )Ill:
~
~
OCA.~
D0<::~'-"2\Jii
~
cx. 2 3 ~ !!i 6 7
Net Value Added (in Rs.) (MIII'OI'I~)
3.17
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, it is in the Cement industry where average
inve~tment 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
.-... ~
0::
c :.:::-c
II)
.E Ill II) > .s;
11 ·o.. 0
u
4.5
....
3.5
..... :; r:::
Jii 2. 2.5
2
Average Investment Per Unit (Estote-wlse)
.... .. ............... . -.... ,.-·· .... , .5 ----- _,. .. - -... ,. ......................... k.,.~ .. •·······················································"'"························r~·-···········
'-.. t~'-'L ,. ~ .....
t-.OIDA Rohi<:lk Alwtlr R6zktl ~e6 L6nl AI Estates
Sampls Industrial E:stctss
I••• Flkrlt & Modinery - FI.M & Lond&Bu1din1J
Fig. 3.18
::s
- 20 IIi
0! c:
c c 1S
<I) 1 E t;; ~ <I)
> 10 .&
] ·o. 0
<.J
Average Investment Per Unit · (Industry-wise)
............................................................................................................... "1' ............................. . ,. I\ I I I \
r • .................................................................................................................. '-··························· J ' I \ , .
I \ r , ··································································································r········T························
J ' I I I ' I I r 1 ········································································································;·············l······················
....... ........ J "' .......... .. .... It' ~~... .... illfrt ···- I / .... \ ... --~~~-J .... '---~~!.~!~-:~:::~ .. •-- ... --~1!.,..-• '~~="' ...... ~~~~ .. -~ ~ ~ ~ ~ ~ ~ - ~ ~ ~ m ~ ~ ~ ~
Industrial Categories
1-•- Plant & Macl-inery ••• P.M & Land&Buildin~
Fig. 3.19
3.4 Conclusions
( 1 ). All the sample industrial estates are within a distance of
1 63 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 prior experience and more than 90 per cent
entrepreneurs 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.
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(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.
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CHAPTER-IV
AGGLOMERATION AND EXTERNAL ECONOMIES
4.1 Theoretical and Methodological Issues
4.2 Comparative Analysis of Estate Block and Non
estate 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.
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