major agro-based industries
TRANSCRIPT
103
CHAPTER V
MAJOR AGRO-BASED INDUSTRIES
“The subject of agro-based industries relationship being current has
drawn the attention of agronomists, industrialists, and planners and needs
to be studied sympathetically by Geographers. Ghaziabad district is
predominant agricultural. Both Geographical factor and agricultural
factor play vital role. The geographical factors like topography, climate,
soil, natural human resources, and cultural activities are essential as these
factors play a very important role in influencing, establishing and
developing both agriculture and agro-based industries.”1
‘Basic to an objective study of the role of the agro-based industries for
prosperity of an economy is an understanding of the term “agro-based
industries”. Unless the connotation of the term is clear, it will not be
possible to appreciate the true purpose and potential of agro-based
industries or assess their relevance to development”.2 Industries
manufacturing “input” for agriculture or agricultural “output” or those
industries which are supported by agricultural products are classified as
“Agro-based Industries”.3 First of all, the agro-based industries provide
the essential input and secondly they function as an outlet for agricultural
output. At present this constitutes the backbone of a developing economy
in this district.
“Urban centres within Ghaziabad district serve as collecting, distribution
and marketing center of agricultural ‘input’ and ‘output’ products and
play a significant role in the development of agro-based industries”4. Any
technological improvement in either agriculture or in agro-based
industries has a simultaneous impact on each other on one side and opens
104
up new areas of development within the area on the other. The growth of
tubewell irrigation in Ghaziabad district during first three plans is not
only agriculture which has become independent from monsoon but has
also increased the number of Sugar Industries, Rice Mills and Oil Mills.
Similarly the increases in the acreage of Wheat, Rice, Cane and fodder
crops have resulted in simultaneous growth of Flour Mills, Rice Mill,
Sugar Mill and Dairy Industry. Service centers both big and small has
played a dominant role in this achievement by providing an infra-
structure for the development of agriculture and agro-based industries.
Perhaps the prosperity of agro-based industries in this district is due to
following facts.
1. The use of rural labour in the industry.
2. Engagement of farmers themselves when free from agriculture;
3. An impetus to the farmers to grow industrial crops; and
4. Quick returns both to the farmers and industrialists.
5.1 Distribution of Major Agro-based Industries
“Ghaziabad the biggest Industrial center of upper Ganga Yamuna Doab,
which is the most prosperous and progressive agricultural region in whole
of U.P, enjoys a high reputation in respect of a few of the agro-based
industries such as Sugar Industry, Oil Mills, Flour Industry, Khandsari,
Gur and Jaggery Industry, breweries, and hand-loom”5 . There are 1604
(2006-07) registered industries in the district, in which only 560 are the
working industries at present and the yearly production of these industries
are 144294348 (Rs. in Thousand) in Ghaziabad. Out of the total
registered employment of 63070 (2006-07) persons in the district, agro-
based group of industries accounts for 34.16% share. This group of
industries constitutes the largest single group at Modi Nagar, Pilkhuwa,
Ghaziabad, Simbhaoli and Garhmukteshwar. The important agro-based
105
industries as illustrated in the table No. 1 are cotton, textile, sugar,
breweries, Flour Industry, oil mills etc. Cotton Textile and Sugar Industry
are the largest industries of this group, which dominates the scene of
industrials activity at Modi Nagar accounting for 75% of the total
registered employment of this industry in the district.
Next in importance is sugar industry which is largely concentrated at
Simbhaoli, Brijnathpur, and Modi Nagar. Other main industries of this
group such as breweries, Flour Industry, oil mills are found at Ghaziabad
but the total share of agro-based industries in the city represent only 10 %
of the district’s total as against 34% share of the district as a whole in the
total registered employment of the district.
Spatially the greatest connection of agro-based industries in the district is
found at Modi Nagar which accounts for about 59% share of these
industries in the district. Next in importance is Ghaziabad city accounting
for 28% share. Together these two centers account for more than 85%
share of agro-based industries in district Simbhaoli and Pilkhuwa jointly
account for more than 10% share and the rest is represented by Hapur,
Garhmukteshwar and Loni.
At Ghaziabad, the main mode of agro-based industries exists at Mohan
Nagar and Loni road industrial area, which together contains about 2/3rd
of the total registered employment of agro-based industries in the city.
The following table No. 5.1 explains the functional pattern of industries
& diagram No.5.1.
106
Table No. 5.1 Functional Pattern of Agro-based Industries at Ghaziabad City
S. No
Name of the Industry
No. of Regd. Units
No. of Employment
Percentage of agro-based industries with total
Employment in the district 1 Cotton Textile 15 2831 7.50
2 Breweries 1 1452 3.85
3 Fruit Products 2 235 .62
4 Hydrogenated Oil 3 781 2.07
5 Tobacco Products 2 545 1.44
6 Cereal Products 5 180 .48
7 Oil Mills and soap 1 600 1.59
8 Jute Products 1 31 .08
Total 30 6655 17.63
Source- Figures tabulated with the help of the list of factories (2001) obtained from Inspector of factories office and field survey.
“Another area where agro-based industries hold an important place is
Bulandshahr road industrial area where important agro-based unit include
M/s Hindustan Lever Ltd., M/s Amrit Vanaspati Co. Ltd., Webbing and
belting factory and M/s Kailash Textiles. On Meerut road industrial area,
there exist two important agro-based industrial units viz M/s. Jain Shudh
Vanaspati Ltd., and International Tobacco Company which employ 318
and 494 persons respectively”6. Following table No.5.2 & 5.3 shows
major agro based industries & diagram No.5.2, 5.3 and 5.4.
Table No.5.2 Major Agro-based Industries (2010-11)
Type of Industries No. of Units Sugar Industries 3 Cotton textiles 21
Flour Industries 7 Oil Industries 6
Source- District Industrial Center &Field Survey 2010-11
107
Table- 5.3 Distribution of Agro-based Industries
S. No Name of the Industrial Centre
No. of Regd.Units
No. of Employment
Percentage of agro-based industries with total
Employment in the district 1 Ghaziabad City 36 6655 28.26 2 Modi Nagar 12 13782 58.26 3 Simbhaoli 2 1647 6.99 4 Pilkhuwa 17 331 1.42 5 Hapur 7 172 .73 6 Garhmukteshwar 3 124 .53 7 Loni 5 154 .23 Total 82 22765 96.42
Source- Figures tabulated with the help of the list of factories (2001) obtained from Inspector of factories office www.justdial.com and field survey.
“Cotton textile holds the most important place accounting for a little less
than 50 % of the total registered in agro-based industries units at
Ghaziabad. It is also one of the important industries of the city holding
third place after electronics, and transport equipments. Next in
importance is a brewery for which Ghaziabad enjoys a nationwide
market. Other important industries at Ghaziabad belonging to this group
include hydrogenated oil, edible oils and soap and tobacco products
which account for 1.6 and 1.5% share in the total registered employment
of the city. Other relatively less important industries of this group are
fruits products, cereal products and jute products, all of which represent
less than 1% share in the total registered employment of the city”7.
The followings are the major Agro-based Industries remaining in the
District and will be discussed scientifically and systematically:
Sugar Industry
Cotton Textile
Oil mill
Flour Industry
108
5.1.1 Sugar Industries
“India is the home of sugarcane, and the production of Gur and Khandsari
was known to be the Indians as early as 5000 B.C”8.The industry received
an impetus after independence. Even through most of the sugar acreage is
concentrated in Ganga Plains, the majority of mills during the British rule
was uneconomic. The quality and quantity of the cane, output per acre are
much lower in the Ganga plains than in peninsular India. The problem of
low yield low sucrose contents, low percent of recovery low per capita
income and consumption and high cost of production are faced by sugar
mills. As the domestic mascot of the sugar is ever expending with the
spread of urbanization and industrialisation, the future of sugar industry
seems bright.
“In Atharva Veda, which dates back to the period 5000 B.C to 1000B.C
there are account of cane cultivation and the production of Gur and
Khandsari. The indigenous variety of cane of Ganga plains is established
on physiological and botanical evidence, to be natural hybridization
between the wild and tropical varieties”9. It is evident that in the early of
6th centaury AD the sugar cane was introduced and grown under irrigable
conditions into Iran from India. The Arabs took the sugar cane to Europe,
Europeans, to North America and thus sugar cane spread from India to
the rest of the world.
The Sugarcane area in U.P. is expected to reduce by 6% in crushing
season 2009-10. However, in spite of decrease in cane acreage, cane yield
is likely to increase by 15 to 20% in 2009-10. The sugar production in the
country is expected to be 17.5-18.5 million tons in the season 2009-10
against the production of 14.5 million tons in 2008-09. After two
109
consecutive year of decline in sugar production is said to recover in
marketing year 2009-10.
The sugar industry has been categorised as under
1. Major sugar Industries –M/s Simbhaoli Sugar Mills Ltd, M/s Brijnathpur Sugar Mills, M/s Modi Sugar Mills
2. Medium Sugar Industry- Khandsari
3. Small Sugar Industry Gur, Jaggery
M/s Simbhaoli Sugar Mills Ltd.
“The Simbhaoli Sugar Mills has an eight-decade record of producing top
quality sugars. Established in 1933 by Sardar Raghubir Sandhanwalia,
Simbhaoli Sugar Mills was amongst the first sugar plants to be set up in
North India. Today we have evolved into a professionally-run,
technology-driven 1500 cr organisation.”10 Three sugar complexes -
Simbhaoli (western Uttar Pradesh), Chilwaria (eastern Uttar Pradesh) and
Brijnathpur (western Uttar Pradesh) have an aggregate crushing capacity
of 20,100 TCD. Simbhaoli has worked hard to earn the trust of its
stakeholders for close to 80-years.
“Simbhaoli started as a partnership firm in 1933 by Sardar Raghubir
Singh Sandhanwalia, with a seed capital of Rs. 10 lakhs. The other three
partners were Col. Buta Singh, Col. Nau Nihal Singh and Joginder Singh
Mann. Sardar Raghubir Singh Sandhanwalia was the dominant partner
with an 82% share. In 1936, Simbhaoli was incorporated as a private
limited company with an authorized capital of Rs. 12 lakhs (1200 shares
of Rs. 1000 each) and a paid up capital of Rs. 9.6 lakhs. Since 1933,
Simbhaoli has played a key role in making life a little sweeter on a daily
basis.”11
110
“The Simbhaoli sugar Mills Ltd. has expanded its aggregate crushing
capacity to 20, 100 TCD, which have capability to produce 3.0 Lakhs MT
white sugar per annum. Sugar production for 2007-08 is estimated at
170.3 m mtrv, against 166 m mtrv in 2006-07. World sugar consumption
in 2007-08 is likely to grow by 2.5 %, but even with this increase, 2007-
08 production is expected to result in the edition to stocks of more than
mtrv of sugar”12.Details are given in table No. 5.4.
Table No. 5.4
Details of Simbhaoli Sugar Mills Ltd.
Unit Period Ended Simbhaoli Sugar Mills September 30, 07 March 31 2006 Sugarcane Consumed MT 14,69,776 10,69,281
Sugar Recovery % 9.34 9.27 Raw Sugar Consumed
MT 12,383 21,355
Sugar Produced (including conversion of raw sugar )
MT 1,47,405 1,13,284
Gross Season Days 196 183 Date of closure (for the season 2006-07) 15.05.2007 13.04..2006
Source- Balance Sheet of Simbhaoli Sugar Mills Ltd.
Simbhaoli Sugars is a technology company with a business mix that
spans refined (sulpherless) sugar, specialty sugars, quality liquor, co-
generated power, extra neutral alcohol (ENA), ethanol, bio-manure and
technology consultancy. “As India's largest integrated sugar refinery, the
Company has pioneered path-breaking innovations in sugar refining
(Defeco Remelt Phosphotation and Ion Exchange technology), high
value, niche products (specialty sugars) and clean energy
(ethanol)”13.Details for the year of 2009 and 2010 are discussed in table
No.5.5and 5.6.
111
Table 5.5 Details of Simbhaoli Sugar Mills Ltd.
Manufacturing Facilities Units Simbhaoli
Source- Balance Sheet of Simbhaoli Sugar Mills Ltd.
*Including conversion of raw and below grade white sugar, into refined sugar.
*Recoveries have been adversely affected an account of short crushing period.
Table 5.6
Business Description Operating Capacities
Factories Cane Sugar* Raw Sugar Processing
Alcohol /Ethanol (KLD)
Surplus Power
(MWH)
Manure MMT/day
Simbhaoli (Western U.P )
9500 850 90 18 17
Source- Balance Sheet of Simbhaoli Sugar Mills Ltd.
*Out of the raw processing capacities, 1450 TPD is Sulphar less refined cabakle to produce EC grade 45 ICUMSA Sugar.
M/s Brijnathpur Sugar Mills: -
This is a unit of M/s SIMBHAOLI SUGARS MILLS LTD, and has a
capacity of 4000 TCD (Tones Crushed per Day), expandable to 5000
TCD. It will have a co-generation power plant with exportable power of
3MWHr per day during crushing season and 8MWHr in the off-season.
It is supported by a distillery for greater profits and efficiency. Details of
the Mill may be seen in the following table.5.7 and 5.8.
Sugar Facilities Sept 30, 2010 Sept 30, 2009
Sugarcane Consumed MT 1,019,463 7,91,488
Sugar Recovery** % 9.23 9.14
Raw/below grade sugar refined MT 1,038,603 89,983
White Sugar Produced * MT 977,818 155,115
Surplus Power Exported KW (Lacs) 394.4 379.52
Grows Season Days 138 133
Date of Closure of Plant 09.04.2010 23.03.2009
112
Table No. 5.7 Details of Brijnathpur Sugar Mills
Manufacturing Facilities Units Brijnathpur
Source- Balance Sheet of Simbhaoli Sugar Mills Ltd.
*Including conversion of raw and below grade white sugar, into refined sugar.
*Recoveries have been adversely affected an account of short crushing period.
Table 5.8
Business Description Operating Capacities
Factories Cane
Sugar* Raw Sugar Processing
Alcohol /Ethanol (KLD)
Surplus Power (MWH)
Manure MMT/day
Brijnathpur (Western U.P )
4000 600 60 - 9
Source- Balance Sheet of Simbhaoli Sugar Mills Ltd.
*Out of the raw processing capacities, 1450 TPD is Sulphar less refined cabakle to produce EC grade 45 ICUMSA Sugar.
M/s Modi Sugar Mills:
The foundation of the Modi Empire was laid by Rai Bahadur Gujar Mal
Modi in 1932 with the opening of Modi Sugar Mills at Modi Nagar.
Located in the heart of the sugarcane belt of western Uttar Pradesh, Modi
Sugar Mills had an initial capacity of 500 tons of cane crushing per day
(TCD) to manufacture “Plantation White Sugar” or crystal sugar, as is
popularly known. The capacity of this mill stands at 5000 TCD at present.
“In 2001, a 30 ton-per-day (TPD) state-of-the-art sugar refinery was
commissioned to manufacture premium quality, Pharma grade refined
sugar conforming to Indian and British Pharmacopoeia standards. The
refinery capacity has further been enhanced to 200 TPD to cater to the
quality conscious institutional and retail markets. The company has also
Sugar Facilities Sept 30, 2010 Sept 30, 2009 Sugarcane Consumed MT 3,95,683 3,51,847
Sugar Recovery** % 9.27 8.51 Raw/below grade sugar refined MT 58,386 12,706
White Sugar Produced * MT 91,429 42,036 Surplus Power Exported KW (Lacs)
Grows Season Days 136 142 Date of Closure of Plant 07.04.2010 29.03.2009
113
established a plant to produce 'Refined Candy Sugar', the only
company in India to do so”14.
Moving ahead, Modi Sugar Mills has started producing a wide array of
new and innovative specialty sugar products. The product basket includes
Low Calorie Sugar Sweetener, Coffee Sugar, Quick Dissolve Sugar,
Pharmaceutical Grade Sugar, Candy Sugar, Sugar Cubes, Icing Sugar,
Flavoured Sugar for Tea and Flavoured Sugar for Milk.
“Renowned as one of the most efficient sugar plants in Northern India,
Modi Sugar Mills has achieved the prestigious ISO 9000:2001
certification. The plant has been completely modernized and automated,
producing 90,000 tons of plantation white sugar. Modi Sugar Mills is the
first company in India to have drug license to manufacture sugar as
per the IP standards.”15
“Since its inception in 1932, Modi Sugar has been in the business of bulk
sugar, which is “Plantation White Sugar” or crystal sugar, as it is
popularly known. The crystal sugar manufactured in Modi Sugar Mills at
Modi Nagar and SBEC Sugar Ltd. is of three grades namely, [Large (L)
Grade, Medium (M) Grade and Small (S) Grade] of 100 acumsa or less.
The sugar comes in 100 Kg gunny bags to meet varied customer
requirements The combined annual production of both the plants amounts
to 2,30,000 tone.”16 Details are given in the following table No. 5.9.
114
Table 5.9 Details of Modi Sugar Mills Ltd.
Manufacturing Facilities Units Modinagar
Source- Balance Sheet of Modi Sugar Mills Ltd.
Khandsari, Gur and Jaggery Industry
Khandsari Industries: -
Khandsari Industries are the most important agro-based industries in
Ghaziabad District. This Industry holds II position in consuming raw
sugar cane. Khandsari industry stands side by side to the sugar mills and
is subsidiary industry. Its development depends upon the supply of raw
materials and the crusting capacity of the existing sugar mills. At present
there are 130 Khandsari industries in district Ghaziabad.
Khandsari units used open pan in place of vacuum pans for concentration
and the sugar obtained is of lower quality compared to white sugar from
mills. Sugar recovery in Khandsari is much lower.
“There units depend on grid supply diesel generators for mechanical/
electrical power or both when grid power supply is erratic and diesel
genets are kept as standby power sources. This increases the cost of
production of Khandsari. Bagasse tops, dry leaves and molasses are by-
production.”17 Modern sugar mills with co-generation meet their entire
energy needs, both thermal and electro mechanical from these bagasse
fired boilers-steam turbine units. They feed extra power to grid or save
Sugar Facilities Sept 30, 2010 Sept 30, 2009
Sugarcane Consumed MT 8,132,542 6,41,368
Sugar Recovery** % 7.13 6.18
Raw/below grade sugar refined MT 3,038,65 269,753
White Sugar Produced * MT 90,000 78,585
Surplus Power Exported KW (Lakh) 244.4 199.72
Grows Season Days 128 129
Date of Closure of Plant 11.04.2010 2.05.2009
115
15-20% bagasse for the use as feedstock or paper making. Jaggery
promotional and regulatory measures have been taken by the government
to improve quality and production. Large number of sugar mills is using
outdated processes and equipment. Some of them not only use entire
bagasse but also use wood. Full details of Regd.units,working
units,production are given in table No.5.10
Production of Gur and Jaggery
“People in rural areas from the very beginning of agricultural practices
prepared gur from sugarcane by boiling its juice in open pans and there
by satisfied their needs for sugar. According to the district (source), there
are nearly 75 units engaged in preparation of indigenous sugar”18. Their
distribution is uniform throughout the area because the farmers consume
mainly this sugar except at ceremonial occasions. Even in the area of
sugar mills, farmers utilise a portion of their sugarcane production in the
manufacture of indigenous sugar.
The Indigenous Production from Sugarcane is Khandsari Gur and
Jaggery. At present there about 26 registered Gur making units in the
district. The total investment in this industry has been Rs. 27,45,983/-.
The total production was valued Rs. 879845 and 3658 persons are
employed. Ghaziabad district about 16 Jaggery making units are on the
record having total investment of Rs. 397236 The value of Jaggery and
1435 persons are employed. This industry is an old an indigenous. By
product such as molasses and bagasse are exported to distilleries, tobacco
manufacturing units and paper mills (Straw Board) respectively to the
inside or adjacent units of the region. Paper mills of the region gets
bagasse from sugar manufacturing units and consume them as their raw
116
materials besides other grasses. A considerable amount of bagasses is
consumed as fuel by Gur making units.
“As sugarcane is cultivated all over India. There is immense scope for the
development of the gur and Khandsari industry. The gur and Khandsari
industry under Khadi and Village Industries Commission helps to ensure
full utilization of sugarcane”.19
Gur is a product which is used as a sweet instead of sugar, mostly in rural
areas; the entrepreneur can receive 10-15% of the production value as
profit. Gur and Khandsari can be sold at local hats and shops because of
high demand in the rural area. Details are given in table No.5.10 and
diagram No. 5.5.
Table 5.10 District Ghaziabad Numbers of Units & Production of Khandsari and Gur
Year Registered
Units
Working
Units
Production of Khandsari in lakhs Quintal
Production of Gur in Lakhs
Quintal
Production of Rus
kut/Gur baddha
Production of Rab
2006-07 18 09 04 44 08 33
2007-08 18 07 02 32 07 12
2008-09 18 06 02 31 07 13
2009-10 18 07 03 24 06 12
2010-11 18 07 02 18 01 08
Source-Assistant Cane Commissioner. Meerut
Cotton Textile
As a single industry manufacture of cotton textile hold an important place
in the industrial structure of Ghaziabad city. It is the 3rd most important
industry after electronics, and transport equipments, with 7.5% share in
city’s total registered employment. However, the city’s share in the total
registered employment of this industry in the district represents only
about 20% while Modi Nagar which is one of the leading textile centers
of Northern India accounts for more than 75% share. Number of
117
registered units & employment is given in following table No. 5.11 &
diagram No. 5.6.
Table No. 5.11
Distribution of Cotton Textile units at different centers
Name of Center No. of regd. Units No. of Employment Ghaziabad 15 2831
Modi Nagar 3 12031 Pilkhuwa 15 331
Loni 2 54 Total 35 15247
Source- Figures tabulated with the help of the list of factories obtained from Inspector of factories office and field survey.
In the present context, discussion on cotton textile industry is mainly
concerned with the development and distribution of cotton textile
occurred in the decade ending in 1971 as is evident from Table 5.12. The
astounding progress of cotton textile industry in this period was only a
part of the vast industrial expansion made possible because of the
development of a number of new industrial areas under the auspices of
Ghaziabad Master Plan.
“The vast complex of Cotton Textile Units along Loni road (M/s Ajanta
Textile Pvt. Ltd, Alps Textiles Pvt. Ltd and L.N. Gadodia & Sons Pvt.
Ltd.) is the outcome of industrial expansion signifying this period. The
textile units located at site 4 industrial areas e.g. M/s Old Village
Industries Ltd, and Enter Craft Pvt. Ltd were established during the
decade ending in 1981.”20 Except during sixtees the cotton textile industry
of the city has witnessed only a moderate growth throughout. The
relatively slower rate of growth of this industry can be attributed partly to
the intense competition with the metal consuming units of the city and
partly to the external competition with the large scale textile mills of
Delhi and Ghaziabad The industry has averted its decline only by
adapting its textile manufacture to the specific needs of the area.
118
Table 5.12 Growth of Cotton Textile Industries
Year No. of regd. Units
No. of. Employment
Percentage Increase in terms of. Employment
Percentage share in the total employment
1951 1 171 6.69 1969 3 217 26.90 3.32 1971 9 1591 633.17 6.99 1981 15 2831 77.93 7.50 1991 17 3135 78.83 8.03 2001 19 3521 80.04 9.50 2011 21 3739 82.06 10.00
Source- Figures tabulated with the help of the list of factories obtained from Inspector of factories office, wwww.justdial.com and field survey.
“The only handicap for cotton textile units in the city is that of district
raw material, but this is the case with many of the fast-growing industries
belonging to metal bases group as well other physical and economic
factors such as those of availability of branches of the industry. Except
M/s. Webbing and Belting Factory Pvt. Ltd. All the other important
textile units have found locations in the trans-Hindan area, a fact which
further emphasizes the nearness of large urban market as being vital for
the success of this industry. M/s. Alps Textiles Pvt. Ltd., L.N. Gadodia &
Sons, Ajanta Textile Ltd., Enter Craft Pvt. Ltd. And Old Village
Industries Ltd. Are some of the reputed cotton textile units. Not only does
the proximity to Delhi ensures large urban market for the specialized
cotton textile manufacture of the city, but it also facilitates attending to
the various formalities required in connection with the export of the
furnishing fabrics produced at Ghaziabad’s factories viz. M/s. Webbing
& Belting Factory Pvt. Ltd., and Alps Textiles Pvt. Ltd.”21
Another area where textile units appear somewhat important is the S. E.
Industrial zone which represents 9.57% share in the total registered
employment of the industry. Except M/s. Webbing & Belting Factory
Pvt. Ltd which employs 199 persons, all the other four textile units of the
area are small-scale factories employing less than 50 persons. One of
119
these four smaller factories viz. M/s Jai Prabha Textile Pvt. Ltd.
manufactures canvass cloth and the remaining three produce various
types of furnishing fabrics. Table No.5.13 explain in details the name of
units & their manufacturing products
Table No.5.13 Major Cotton Textile
S. No Name of cotton Textile Manufacturing 1. Bhavna Fabrics, Vijay Mandi, Muradnagar
(Ghaziabad) Cotton Fabric, linen Fabric, linen strips, Glace cotton Fabric.
2. Vaibhav Trading Company Sahibabad Ghaziabad Cotton 3. Shri Ram and Sons Pilakhuwa, Ghaziabad Handloom, Cotton. 4. Sai Enterprises, Loni, Ghaziabad Cotton Tape Manufacture 5. Versa Tile Enterprises Pvt. Ltd. Mohan Nagar,
Ghaziabad Textile, Fabric, Shoe Fabric
6. ALPS Industrial Ltd. Sahibabad, Ghaziabad Textile Fabric, Home Furnishing Fabric, Automotive Fabric
7. Pratap Jute Company, Bulandshahr Road, Ghaziabad Hessian Cloth, Jute Bag 8. Rafia Industrial, Bulandshahr Road, Ghaziabad Fabric, Textile 9 Unique Polycoaters, Vaishali, Ghaziabad Fabric, Textile
10. Jai Prabha Textiles, Kavi Nagar, Ghaziabad Woven Fabric, Nonwoven Fabric, Durt Collocation Bags.
11. Crepes n Cottons, Kaushmbi, Ghaziabad. Ladies Suits, Ladies Clothing Fabric, Crepes n Cottons
12. Gaurav Cotton Waste Industries, Ghaziabad Cotton Yarn, Cotton Wart, Cotton Rags
Thus while concluding my discussion on the cotton textile industry of the
city, I shall once again emphasize that this industry has not been going
through an easy period right from its beginning in 1947. It signifies an
industry which has struggled hard to grow and to maintain itself. The
adaptation of this industry to the specific needs of the area has been the
major motivating factor for its substance. It has grow from within and
sets a living example of a dynamic industry in the growing industrial
structure of the city.
Oil Industries
Mustard is a well-known oil seed and an annual crop. It has round stem
with long inter-modes, simple, alternate and very soft yellowish green
leaves. The fruit is a pod containing seeds. Dry mustard seeds are small,
round and darkish-brown or grayish-brown in colour. They have no
120
smell, but when pounded and moisture with water, they emit a peculiar
strong smell.
“Mustard oil is of vegetable origin and is obtained from seeds of the
black and white (Sinapis Alba) mustard plants. In the crude state, black
mustard oil (Brassica nigra, light color) has a spicy odor and a strong
taste. When refined it is neutral in odor and taste. White mustard oil
(yellow color) has a bitingly pungent taste due to the allyl mustard oil it
contains.” 22
India is the fourth largest oilseed producing country in the world. Mustard
seeds, rope seeds, lint seeds, soya seeds and palms are the main sources
of edible oils. Oils are extracted from these seeds. Mustard oil is a well
known oil seeds as well chief edible oil.
Mustard oil is the largest edible oil produced in the world after Soy oil
and Palm oil. At a production level of 13 - 14 million tons, it accounts for
about 12 % of the total World's edible oil production. Mustard oil is
composed mostly of the fatty acids oleic acid, linoleic acid and erucic
acid. At 5%, mustard seed oil has the lowest saturated fat content of the
edible oils. Numbers of heavy & small scale industries are given blow in
table No. 5.14 & diagram No. 5.7.
Table No. 5.14 Number of Oil Industries
Type of Industries Number of Units
Total manufacturing Industries on small & cottage scale. 138
Heavy Industries 6
Expeller 119
Source- District Industrial Center of Ghaziabad & www.justdial.com
The edible oils of vegetable origin are the most important sources of
cooking oil. The district produced nearly 2483 Mt. (2001-02) oil
121
mustard seeds. Mustard seed is the only oil seed crop and popular
cooking oil of the district. Natural unrefined mustard oil extracted
through cold process is quit pungent. The consumers of traditional
product prefer pungent oil. Till now the extraction of pungent oil
could be possible only by Rotary Ghani due to mustard seed moisture
range of 10-12 %, low temperature of extraction in wooden bowl
wherein the pungent principal- allyl isothiacyanate does not evaporate.
However, the expeller made of metallic components and high
compression ratio raises the seed temperature up to 80-100°C resulting
in loss of pungent principles. The "Modern" oil expeller provides high
pungency mustard oil by low temperature crushing through
incorporation of a water cooled chamber and processing at critical
moisture levels of oilseed. The six large scale oil industries are given
in the following table No. 5.15. Table No.5.15
Large Scale Oil Mills
Large Scale Oil Mills Manufacturing Bharat Oil Mills, Bhagwan Ganj Mandi, Modi Nagar, Ghaziabad
Soyabeen,Sesame, Mustard oil.
M.R. Oil Mills Pvt. Ltd, Lower Market, Main Market Modi Nagar Ghaziabad
Soyabeen, Mustard oil
Bunge India Pvt. Ltd. B-16, Site I, Bulandshahr Road, Industrial Area Ghaziabad
Mustard oil manufactures
N.M Agro Pvt. Ltd. 2nd A 17 Nahru Nagar, Near Jain Mandir Phatk Bulandshahr Road Ghaziabad
Mustard oil manufactures
Ch. Ishwar DAS & Co. 132, Ramte Ram Road Ghaziabad. Mustard oil manufactures Shyama Trading Company 376, Kriana Mandi, Ram Nagar, Ghaziabad.
Mustard oil manufactures
Source: Office of Oil Mills, Ghaziabad
Flour Industry
Wheat is a major crop of the district Ghaziabad. In year 2001-02 the
district produced 24885 M.Ton wheat, in 2002-03 255201 M. Ton that
increased 2.55 % while in the year 2008-09 the production was 306071
M.Ton. The district has emerged as the second largest producer of this
cereal crop that is 53.02 % (2009-10) of the total cultivation. Wheat
122
contains 12 % bran, 3% embryo and 85% flour. It is mainly processed for
flour, Maida, suji and Dalia. In last 50 years, harvest and post harvest
technology of wheat has advanced substantially. The most significant
development has been the use of self propelled harvester combines used
for harvesting and threshing of wheat. Several factors are currently
slowing the rate of district expansion of wheat production. Population
growth rates are falling while wheat yields continue to rise and the better
economic profitability of other crops such as sugarcane, linked with
investment genetic technologies, has promoted shifted to other crops.
The industry could grow on account of R &D input starting from the
design and development of a Varity of threshing machines. Mud pins,
wooden plank and mud plastered bins, gunny bags and metal bins have
been in use by farmers for storage of wheat for food and for seed
purposes. The traders and government agencies use gunny bags and go
down type structures for storage of wheat. A number of commercial
organizations have been offering processing units for handling, cleaning,
grading, drying, storage, treatment and bagging of wheat for seed and
food applications. Wheat is now increasingly being used in the form of
bread, biscuits, suji and atta. Wheat is flakes and puffed wheat as
breakfast cereals has been gradually picking up. Traditionally used
smaller size atta chakkis may face problems of declining clientele. Better
mechanized chakkis (with lower pollution level and better energy
efficiency) are likely to increase in number. The number of roller flour
mills is also likely to increase steadily, however majority of the mills may
continue facing the problems of low capacity utilization and working
capital constraints. These units would need to function through vertical
integration of operations for sustaining profitability and achieve cost
reduction through appropriate automation and computerization. Increase
123
in demand is also expected in grain handling machinery, soil systems in
grain markets and seed processing machinery.
In the year 2001-02 there were about 1689 Atta Chakkis and 7 roller flour
mills in the district. See the following table No.5.16 & diagram No. 5.8.
Table 5.16 Flour Mills in District: Ghaziabad
Name & Address of Unit Products
1. Delhi Floor Mill Company, C-40, Meerut Road, Ghaziabad. Atta, Maida, Suji, Bran.
2. Bhawani Roller Floor Mill, 1/A, Ghaziabad. Atta, Maida, Suji, Bran.
3. Reliance Foods & Proteins Pvt. Ltd. C-231, Bulandshr Road, Ghaziabad
Atta, Maida, Suji, Bran.
4. Maheshwari Floor Mill Pvt. Ltd. A-3, Bulandshr Road Ghaziabad. Atta, Maida, Suji, Bran.
5. Ambey Floor Mills Pvt. Ltd. C-240, Bulandshr Road, Ghaziabad. Atta, Maida, Suji, Bran.
6. Goyal Food Industry, Hapur. Atta, Maida, Suji, Bran.
7. Jassu Pandit Flour Mill, E-1522 Rama Park extent Nanda Colony Sunday Bazar Futa Road Loni,(Ghaziabad)
Atta, Maida, Suji, Bran.
Source-District Industrial Center & www.justdial.com
5.2 -Growth of Major Agro- based Industries
“The Indian economy is predominantly agricultural and agricultural
products account for nearly 43% of the national product. Agriculture
plays a vital role in the industrialization of the country which can lead to
capital formation, higher per capita income and employment
generation.”23
Keeping in view the importance of agro- based industry; the government
of India has announced several policy measures including creation of a
full-fledged Agro- Based industry department. The fact that district
Ghaziabad produces a wide range of sugarcane, oilseeds, cotton, range of
fruits etc. Among the various types of industries, Textile, Sugar Mill,
Flour Mill, Rice Mill, edible oil and fats vegetables oil pressing etc., are
some of the industries that have grown faster in comparison to other
industries.
124
The nature of growth of agro-based industries in district Ghaziabad has
been similar to other region of Uttar Pradesh. Till 1932 agro-based
industries were few and did not utilize the resource base fully. After the
construction of upper Ganga Canal (with the provision of electricity and
transport facilities). Some spurt in the growth of agro-based industries
was witnessed. In 1933 the two large scale units established in
Ghaziabad district was The Simbhaoli Sugar Mills Ltd. And The Modi
Sugar Mills Ltd.
Most of the part of the district Ghaziabad is covered by fertile alluvium
soil. Agriculture provides the main sources of livelihood to rural areas but
n urban areas industrial development has rapidly taken place since
independence Agro-based industries like sugar have also developed on
account rich agricultural produce within the district. After 1932 a sudden
growth in the number of industries has been noticed. Growth of agro-
based industries in the district may be divided in to the following heads.
The Growth of Agro- based Industries before independence
There were only cottage industries in the district up to nineteenth century.
In the beginning of the twentieth century few crushers and Khandsari
units were established at the small scale in the district. Oil expellers and
ban making was also down on scale units in the villages and towns. The
cottage industries, however, dominated the industrial landscape of the
district up to 1932 before the establishment of the sugar mills in the
district. Before we take up the history of setting up of large scale or big
agro-based industries in the district, let us first the discuss the factors for
these units.
An industry is established in a particular area because of the two main
factors. These are the availability of raw material and that of cheap
125
labour. The district Ghaziabad fully satisfied these two main conditions
for the location of spinning mills in the district. Cheap skilled labour,
transport facilities and very large market for cotton yarn attracted the
entrepreneur to establish this unit in the district The district being a part
of sugarcane cultivation tract, has encouraged the industry in the district
Ghaziabad. The district till 1932 had no modern factory. But after the
protection given by Indian Tarrif Board in 1932, the industry was able to
locate itself in the Ghaziabad district with a rich harvest of sugarcane in
countryside. The year 1933 i.e. within a period of one year two large
scale industries were established namely, The Simbhaoli Sugar Mills Ltd.
(Simbhaoli) and The Modi Sugar Mills Ltd.(Modinagar) The third
important Sugar factory in the district is Brijnathpur Sugar Mills
(Brijnathpur), established in 2004. This is a unit of The Simbhaoli Sugar
Mills Ltd
The Growth of Agro-based Industries after Independence
“The first five year plane of U.P. was launched on April 1951. The planed
aimed to provide larger irrigation facilities to increase the agricultural
production therefore the generation of power by Ganga grid system were
extended. During the second plan of the second plan of the state, the
emphasis was given to the industrialization.”24 The growth of perennial
agro-based industrial units was significant in district Ghaziabad during
this period. The blow table No.5.17 shows that in 1950 there were two
sugar factories in Ghaziabad and provided employment 2647.
Table No. 5.17
Growth of Sugar Industries
(1950)
No. of units
workers (1991)
No. of units
Workers (2004)
No. of units
Workers % of
Growth
2 2647 2 2456 3 3213 50%
Source: Balance Sheet of Simbhaoli Sugar Mills Ltd.
126
In 1975 there were 32 agro-based industries. Rest of 20 factories is
operating on small scale and manufacture Gur and Khandsari. In 1975
there was few plants were found in the newly created district Ghaziabad.
Four edible oil units, one flower mill, and four cold storage units are set
up during 1970-80 period in Ghaziabad.
The growth of agro-based industries at large scale was stagnant in
Ghaziabad during the period 1970-80. A large scale unit of vegetable oil,
vanaspati ghee and solvent extraction plant was established in private
sector which encouraged the oil seeds growers in the district. The raw
material availability in large amount nearby state Haryana, Ghaziabad has
a leading position in vegetable ghee and vanaspati Production in U.P. one
edible oil unit , three spinning and weaving units, two cold storage units
and dozens of Dal and Flour units were established in Ghaziabad district
during eight decades. The growth of large scale units was significantly
high during this period in Ghaziabad district. See the following table No.
5.18 & diagram No. 5.9.
Table 5.18 Number of Industries in District Ghaziabad
Name of
industrial center No. of units
(1991)
No. of Employment
No. of units
(2008-09)
No. of Employment
%Growth of industries
Ghaziabad city 21 3452 30 6655 42.85% Modinagar 5 11654 8 13782 60% Simbhaoli 2 1265 2 1647 0% Pilkhuwa 11 213 15 331 36.36%
Hapur 3 132 4 172 33.33% Garhmukteshwar 2 118 2 124 0
Loni 2 60 2 54 0 Source- District Industrial Center Ghaziabad.
127
5.3- Impact of Major Agro-based Industries on Socio-economic
Development on society
For an all around economic development of the district a balanced
development of natural resources is essential only one means of
occupation neither can provide satisfactory employment conditions nor
can ensure a sound economic background to a district. “Along with
agriculture and some other industrial activities, utilizing, as far as
possible, the local natural resources have also to be developed. One of the
means of utilizing natural resources and releasing the pressure from
agrarian economy is industry.”25 Industries provide employment to
technical as well as non-technical labour. Thus on the one hand they help
in the solution of employment problem while, on the other they provide
opportunity for the utilization of human as well as natural resources both
from within and outside the district. This way, the industries from a part
of the much broader process of economic development which involve the
raising of standard of living through steady increases in the efficiency of
factors of production. The pattern of living is considerably changed
through the actual process of industrialization. For planning new and
balanced socio-economic development of agro resource in future, a
critical study of industrial situation is thus essential.
“The economic development of an area is a complex task. Being an
agriculture district, it has vast potentialities for economic development
through agro- based industries which is a process of building up the
capacity of the area to process the agro- based raw materials and then to
manufacture goods either for consumption or for future production.”26
Today agro-based industries constitute the backbone of developing
economy. The agro-based industries have become an invaluable weapon
in bringing into existence a harmoniously balanced integrated socio-
128
economic order. “The role of agro-based industries is most significant
both in respect of employment and value added by manufacture, not only
in the developing economies but also in the highly developed economies
of the world.”27
Friedrich List 28 in the 19th century postulated a process of development
proceeding from an agricultural stage through an agricultural stage to an
agricultural-industrial-commercial stage. “Without industrial
development economic progress has a relatively low ceiling. A consensus
has arisen among development theorists and planners that for most
countries, economic development must be viewed primarily in terms of
industrialization.”29
Broadly defined, industrialsation is, “a process in which changes of a
series of strategical production functions are taking place. It involves
those basic changes that accompany the mechanisation of an enterprise,
the building of new industry, the opening of new market and the
exploitation of new territory. This is, in a way, process of ‘deepening’ as
well as ‘widening’ of capital”.30 Industrialisation is a basis of
transformation. This transformation results in a series of interactions
between the pre-existing agricultural society and the compulsions of
industrialisation process. It touches upon behavior patterns, value
systems, religious beliefs, structure of social groupings and economic
arrangements”.31The productivity of workers in industry tends to be
considerably greater than in agriculture.
“Agro-based industries generate the possibilities of co-operative societies.
Development of agro-based industries in the co-operative sector is
important. They help to strengthen other co-operative services such as
supply of agricultural credit, marketing etc. In a subsistence economy of
129
Ghaziabad district, integration of co-operative services with agro-bases
industries is vitally important, if the farmers have to grow vigorously and
steadily important, The agriculturists and the processing units have
mutual interests in more and better production of agricultural produce.
The agro-based industries have created not only the economic
opportunity but also the much needed self confidence in the community
of farmers. It has provided a good integration and combination of rural
and urban economics”.32 Agriculture and agro-based industrial
development are mutually interdependent and the development of the one
can hardly be conceived without the development of the other. But in the
scheme the agricultural development should precede agro-industrial
development so that the surplus income secured in agriculture could find
investment channels in agro-based industries.
As it has been said earlier that the role of agro-based industries in the
economic development of Ghaziabad district is very vital. It generates the
possibility and prosperity of socio-economic and cultural development. It
is the agro-based industries, mainly sugar industry which provides a great
potential of sugar cane and other agricultural raw materials. If the sugar
manufacturing industries were not established in the district, the
cultivation of sugar cane cannot be placed at first rank. This is the case
with wheat cultivation which ranks second. Sugar cane is the chief cash
crop of the area. It has been found that the agro-based industries are
serving the area in its economic development in the following ways:
1. Introduction of latest means of science and technology and
agricultural implements;
2. Establishment of Educational and recreational centres;
3. Provide employment;
4. Improvement in purchasing capacity;
130
5. Mutual Cultural exchange
6. Good yield in quality and quantity both;
7. Development of means of transport and communication.
Before the introduction and establishment of agro-based industries in
Ghaziabad district, the people were bound to draw their livelihood from
the agriculture only which was not sufficient. Some of them were
compelled to run outside in search of livelihood to feed their families. But
now a day, the area is in commanding position to employ their own
people as well as to attract other skilled and unskilled people from the
neighbouring areas and elsewhere. Agro-based industries have generated
double employment (i) agricultural labour, and (ii) industrial labour. The
crops producing raw to agro-based industries, require maximum amount
of manual labour for their cultivation. The cultivation of sugar cane and
rice pioneer among cultivation. The cultivation of sugar cane and rice
pioneer among them require maximum labour for their sowing, weeding,
irrigation and harvesting. A considerable amount of labour is involved in
transportation of produce from field to respective mills, and crushes.
Besides, sugar mills, cotton Textiles, flour industries have provided much
employment.
Table No.5.19
No. of Employment except Agricultural Labour and Individual Weavers
S. No Units No. of Employment
1. Sugar Mills 3456
2. Cane Crushers 2435
3. Flour Mills 776
4. Rice Mills 536
5. Cotton Textile 4257
6. Oil Mills 567
Source- District Industrial Centre & Field Survey.
131
Secondly, the agro-based industries led the farmers to increase their
yields in quality and quantity both. In sugar cane yield quantity dominates
over quality because it is sold on weight basis instead of percentage of
sucrose contents. The farmers have adopted the latest techniques to grow
improved and disease resistant varieties of seeds. They have learnt the
latest means of cultivation, developed and improved means of irrigation,
use of chemical manures as per requirement, chemical examination of
soil etc. “Now farmers are in a position to enjoy latest researches, and
advice aired through mass media and agricultural universities i.e.
Pantnagar and I.A.R.I. New Delhi. The protection and prevention of
crops from insects and pests and the use of insecticides and pesticides to
improve yield are very common. All these above methods have improved
the yield in the area, mainly producing raw materials and hence
developed the socio-economic condition.”33
A suitable cultural exchange of tradition and customs is the fruitful result
of agro-industrialisation in Ghaziabad district. The multi-cornered people
with different tradition, customs and religion and belief, are enjoying the
benefits secured from agro-industries, mainly sugar mills, cotton textiles,
distillery, infant milk food factory, flour and other mills. The full culture
diversity has firmly established itself as a way of life in this plain.
Besides above, the agro-industrial development has put multi-
dimensional development in the economy of the district. Agro-industries
have been a boon to this plain. The inertia and conservatives of the
farmers have dwindled. Farmers of Ghaziabad district are much more
enlightened. The development of tubeweels, tubeweel irrigation, the
growth and availability of more hydro-thermal power, the intensification
of agriculture, the introduction of new service and marketing centres, the
use of mass-media (Radio and T.V) and the generation of transport
132
activity and infra-structure, the availability of capital (finance and
machinery) through banks, the introduction of farm insurance facilities,
the growth of truck farming, have all given a new life to Ghaziabad plain.
This is a process through which we can transform the simple farmer from
an unskilled worker to a highly skilled technical worker fit for absorption
into high sophisticated industries (which is need of hour) through this
means we prepare him mentally and physically to bear the responsibility
of highly developed machine age-the way of life given by modern
civilization.
133
REFRENCES
1. Singh, R.L.(Ed.1971), India: A Regional Geography, NGSI, Varanasi, p.181.
2. Iqbal, B.A. (1981), Agro – based Industries:: Performance and prospects, Alighar, p.1.
3. Ibid., p.1.
4. Mishra, P.L (1994) “Agro Industrial Development in India”, Mohit Publication New Delhi p.
203
5. Books.google.com.in
6. Ibid.
7. Ibid
8. Sinha,op.cit.,p.2
9. .Ibid p.96.
10. http://www.simbhaolisugars.com.
11. Ibid
12. Ibid
13. Ibid
14. http://www.Modiisugars.com
15. Ibid
16. Ibid
17. http://www. agricoop.nic.in.
18. Singh R.P, “Regional Planning in India” p.140
19. http://www.wikimapia.orggur/khandsari.nic.in
20. Books.google.com.in
21. Ibid
22. http://www.en.wikipedia.org/wiki/mustard oil
23. Draft outline of Govt. of India, 1988-89.
24. “Industrial Landscape within National Capital Region of UP”. (1991) By Bimlesh Kumari.
25. Op. cit. Ref.18p.129-130.
26. Kaur, K(1981), “Structure of Industries in India”, New Delhi,p.18
27. . Op. cit. Ref.1p.1
28. Op. cit. Ref.25p.17.
29. Ibid.,p.17
30. Pei-kang change, “Agriculture and Industrialisation”, Cambridge, Massachusets, Harverd University Press, 1849,p 69.
31. Op. cit. Ref.25p.18.
32. Op. cit. Ref.4p.268..
33. Ibid., p. 271.