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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