The industrial possibilities in Chennai district has to be assessed not only based on the resources and demand prospects within the district but on a broad frame work of agriculture products and other resources coming to the main markets in the city from the other districts of the States where there is very limited storing and marketing facilities. While studying the new industrial possibilities wider perspective has been kept in view and efforts have been made to include items of requirements of the neighbouring districts, States, national and international markets also, rather than depending on the districts potentialities alone.

The possibility of setting up ancillary units to large/medium scale units and the possibility of utilizing bye products/industrial waste also have been examined and efforts made to suggest new industries.

It may however be mentioned here that success of any attempt to promote any industry has to be backed up with a pragmatic programme to motivate and promote entrepreneurship and follow up the same with continuous assistance programme by the agencies/departments connected with the development of small industries. To guide the prospective entrepreneurs the agencies connected with the development of small industries are given as Annexure 2, 3 and 4 of the report.

Scope for setting up industries in Tamilnadu/Chennai district has been increased tremendously because of number of steps taken by the government of India/Tamilnadu government to boost the development of industry in the State. In recent past, a number of incentives have been announced by the government and all procedures and formalities have been simplified.

Our 10th Five year plan is to commence from 1st April 2002. It is going to lay greater emphasis on the development of agriculture and allied activities as well as on infrastructure especially power, road, and rail transport and communications.

New Thrust Sectors

In the context of changing industrial climate, there are host of industries where the State is strengthening and deepening its presence, some of these are :

  • Computer Software and Hardware
  • Electronics
  • Bio-technology
  • Tourism
  • Transport Equipment and Ancillaries
  • Floriculture
  • Food processing
  • Infrastructure development

This partly reflects a gradual shift from resources-based advantages to knowledge driven competitive advantages. Giving its strong base of resources, infrastructure facilities, technical and non-technical work force, knowledge intensive industries will soon take a lead position in the State especially in Chennai district. Taking into consideration the efficient infrastructure, the physical, material and skilled and unskilled resources, local, national and international market the following new industries are suggested to be set up in Chennai district.

  1. Leather and Leather Products. The Indian leather industry occupies a place of prominence in the Indian Economy in view of its substantial export earnings, employment generation and growth. The world trade in leather products is growing in view of the increasing demand for products made of leather. The domestic demand is also expected to rise with the growing GDP, and consumption pattern particularly for products like footwear, leather goods etc. The export of Indian leather and leather products grew manifold over the past three decades and its current share in global trade is 2.35 per cent. During the year 1999-2000 leather and leather products were exported to the tune of Rs.69,52,061. During the year 2000-2001 the export of leather and leather products increased to Rs. 90,04,321. Within one year

    there was an increase of 29.52 percent in the export trade of these products. Leather sector employs 2.5 million people mostly from weaker section and women folk. India is endowed with 10 per cent of the world raw material base.

    The developed countries have lost the competitiveness and they depend on imports for meeting their requirements from developing countries like India. India’s export is expected to reach a level of US $ 3.6 billion by 2005-06 envisaging 5% share of global trade. Considering the raw-material base in the district and in the neighbouring districts , abundant availability of manpower skill required for tanning, finishing and manufacturing down stream products , competitive wage level , very high value addition within the country, high return of capital investment a few units could be set up for catering to the needs of domestic as well as international markets in each product. The following industries are suggested in leather industry.

Name of the product. Capacity Indicative Investment
1.Leather goods like
 i. Hand bags
 ii Wallets
 iii. Belts
 iv Key holders

7,500 pieces } p.a
7,500 pieces }
7,500 pieces }
9000 pieces }
Rs. 20 Lakhs
2. Industrial Hand gloves. 800 gloves per day Rs.9Lakhs
3. Leather sandals & Chappals 1,200 pairs per month Rs.15Lakhs
4. Leather luggages bags 500 pieces /month Rs.6 Lakhs
5. Leather components like
shoe uppers, and shoe bottoms
1000 pieces each/month Rs.8 Lakhs
6. Ethnic Footwear. 1,200 pair /month Rs.5 Lakhs
7. Leather garments (for exports)   Rs.95 Lakhs
8. Harness and sadling (for export)   Rs.95 Lakhs

  1. Food Processing.

    The Metro has two major markets and cold storage facilities. During the season the surplus fruit and vegetable commodities of the neighbouring districts are abundantly available in the markets. There is good scope for setting up few number of food industries in the district for domestic as well as international market. Given a vast population of 900 million people growing at 2% p.a. the food needs of the country are large. As both husband and wife work in most families, convenient and partially cooked packaged foods are in increasing demand. Food processing industry enjoys priority status for bank funds. Inspite of lower farm productivity, India has emerged as the largest producer of sugar, fish, Milk, Eggs, Vegetables, Fruits, Poultry resulting in need for their preservation, processing and export. Taking into consideration the agriculture products coming to the market the following industry could be set up in Chennai District:

    1. Minimally processed vegetable. (Onion, garlic and ginger Paste )

      India is the 2nd largest producer of onion in the world next to China, It accounts for 16 percent of the world area and 10 percent of the world production. But fruits and vegetable preservation industry is still in its infancy in this country. Tamilnadu is one of the Onion producing States in the country. A good amount of garlic and ginger is also produced in the State.

      During the harvesting seasons a large quantity of onion, garlic and ginger is coming to the Chennai markets from different parts of the State. Onion, garlic and ginger paste can be classified under the category of minimally processed foods, which is a product that has the attributes of convenience and very little alternation in quality from the basic ingredient. Ginger, and garlic can also be made as paste. This product is generally used in hotels, restaurants railway/Airlines catering services and house hold kitchens for flavouring biriyani and meat preparations. Onion paste, ginger paste and garlic paste have tremendous domestic as well as export market.

Capacity/ annum 250 M.T. Onion, Garlic and Ginger paste.
Indicative Investment Rs. 42.8 lakhs

    1. Tofu (Soya Panneer), Soya Milk.

      Tofu or soya paneer is a tasty and nutritious product made by coagulating hot soymilk using food grade organic acids (acetic acid, citric acid or lactic acid) or salts (calcium chloride, magnesium chloride, calcium sulphate). It is a versatile food that can be incorporated into a variety of food products. A typical soft tofu is characterised by a bland taste and fine texture with 84.90 percent moisture. These characteristics make tofu so versatile that it can be blended with other ingredients to prepare a variety of appealing and tasty foods.

      Soya bean is very rich in high quality protein containing all the essential amino acids that our body requires. Soya is rich in vitamins, minerals and isoflavones. Soya makes an excellent milk alternative for those who are allergic to milk or lactose intolerant. Regular intake of soya in the form of Soya paneer or soya milk reduces the cholestrol level, prevent heart diseases, it control blood sugar level also. Soya food is very safe and can be used by all age group people. There is scope for manufacturing units in this line of activity.

      The technology and other details can be obtained from Harcut Butler Technological Institute, Kanpur

                              Indicative Investment :        Rs. 10 lakhs

    2. Vegetable dehydration for domestic and export market.

      Dehydration offers a standard quality hygienic product in a concentrated form. Foods are dehydrated to preserve and perishable raw food commodity against deterioration or spoilage under the intended conditions of storage and eventual use and also to reduce the cost or difficulty of packaging, handling, storing and transporting the material by converting it to a dry solid, thus reducing its weight and also volume.

      Most of the vegetables are seasonal and dehydration makes them available through out the year in hygienic conditions at reasonable cost, yet convenient enough to be used by large scale catering establishments and in defence rations and in various expeditions /missions like mountaineering, deep sea fishing etc.

      Domestic consumption of dehydrated vegetables is very less, major portion is being exported. Principal destinations for export of dehydrated vegetables are West Germany, U.K., U.S.A., France, C.I.S (Confederation of United Independent States), Japan and gulf countries.

      Vegetables growing in neighbouring districts, due to lack of organised commodity markets and in view of inadequate warehousing and cold storage facilities, are marketed in Chennai. During vegetable harvesting seasons vegetables are abundantly available in the markets for this purpose or the vegetable dehydration units can keep tie up with the farmers of the neighbouring districts for bulk supply of raw vegetable during the season

             Capacity:                250 K.g./day

             Indicative Investment:         Rs. 15 lakhs

             CFTRI Mysore./SISI Chennai

    3. Fruit Processing Industry

      Fruit processing industry plays an important role in the conservation, effective utilisation of fruits produced reducing wastage and losses and generating employment and income. Fruit products are very much relishing and being preferred as a nutritius vitaminised food items. They are heavily demanded by people all over the country as well as global level. In modern times people are becoming more health conscious through intake of less faty materials which increases cholestrol in blood level and leading to cardiac diseases. However, they are resorting to light meals and fruit juices.

      During the fruit harvesting season fruits like mango, guava , banana, oranges and lemon are available in plenty in Chennai markets coming from the neighbouring districts. Educated unemployed is also on the rise in the district.. As the fruit processing units are labour intensive, it will augument employment opportunities both directly and indirectly, especially for women entrepreneurs who are available in plenty.

      There is a good demand for processed fruit items in international market. During the year 98-99 processed fruits and juices worth 69 million dollar were exported accounting for 1.1.% of the total agriculture products export. In 1999-00 the export of these products increased to 113 million dollars accounting for for 2.1. per cent of total agriculture products from the country. It is estimated that there will be 15% to 20% increase in demand for these products. Squashes, Syrup, jam and jellies from oranges, lemon and mango and mango bar, mango pulp, guava pulp etc. can be made.

                Suggested Capacity             300 tonnes/annum
                 Indicative Investment              Rs. 30 lakh

    4. Fish processing.

      Fishing is an important activity which provides gainful employment and sustainable income to people living in coastal belt. The coastal length of the district is 22 k.m. During the year 1997-98 the marine fish production was 14,555 tonnes. There is good demand for dried fish, fish meal, dried shrimp and frozen shrimp in Spain, Japan, Australia, Italy, Belgium , Hongkong, U.K., U.S.A.,. Lanka, Saudi Arabia, France etc. During the year 1999-2000 total exports of marine products from the country was 1180 million dollars which accounts for 21.6% of the total agro industries products exported from the country,. It is estimated that every year there will be an increase of 5% in demand for fish products. Few units manufacturing frozen fish, fish canning, fish pickle, fish meal and fish protein concentrate could be set up near the coastal area of the district.

    5. Fish Papad.

      Fish papad are made with carbohydrate as main base and incorporating salt and several other ingredients with or withiout spices, are very popular in most part of the county. The demand of papad especially fish papad is increasing day by day due to urbanisation and improvement in the standards of living of the people especially in Metropolitan cities. There is good potential for good quality products at competitive prices in the Indian markets as well as export. It has been experienced that advertisement publicity, etc. have influenced the pattern of consumption of fish papad /flakes/wafers. At present the fish papad coming in to the market is only domestic type which can be commercialised. The demand for fish papad is increasing in foreign countries especially where the Indian immigrants have been settled. It has been reported that average annual export of fish papad is about 10% of the total processed food products.

      The Central Intittute of Fisheries Technologies , Willington Island, Matsyapuri P.O. Kochi, Pincode 682029 have standardised the process for manufacture of fish/prawn swafer/papad/flakes swith having about 2 years shelf life. Detailed technical know and process can be had from the above said Institute. Project Report is available in SISI Chennai.

               Capacity:                                 120 M.T.Per Annum

                 Indicative Investment:             Rs. 25 lakh

                 Technology:                             Central Institute of Fisheries Technologies

                             Willington Island, Matsyapuri, P.O. Kochin. Pincode - 682099

    6. Mechanised Modern Dressed Chicken Centre.

      The rate of growth of poultry industry is faster than that of other sectors of food industry. If the present trend continues, it will be the single largest source of animal food in our diet. It is anticipated that poultry products including eggs will contribute 37% of the requirement in the country by 2010 A.D. At present almost entire quantity of poultry meat is sold as fresh, unchilled meat. There continues to be an extensive trade in sale of live poultry and there is sizeable market for live and dressed meat. This scenario is now gradually giving way to organised poultry dressing operations. The most compelling reason of modernisation is to improve labour, productivity and implementation of regulatory measures to ensure hygienic products.

      At present the consumption of poultry products is based towards large cities and metropolitan. It has been estimated that about 25% of this consumption is met through dressed ready-to-cook type chicken. There is a large demand for dressed chicken by Institutional trade, especially the hotels and restaurants, which consume about 40% of the total production of dressed chicken leaving remaining for household buyers. In the Metro the trend in sale of ready-to-cook poultry is catching fast.

      The units which are engaged in poultry processing mainly producing dressed chicken are small units with no facility for mechanised dressing. 70 percent of the birds produced by the poultry farms in the neighbouring Kancheepuram and Thiruvallur district are sold to the consumers of the Chennai City. So the unit holders can procure the birds in bulk quantity from reputed farms with prior tie-up arrangements.

               Capacity          300 Birds Per day

               Indicative Investment          Rs. 8 lakh

    7. Processed Milk Products.

      The lion share of the milk produced in the neighbouring states like Thiruvallur, Kancheepuram, Thiruvannamalai etc. is being marketed in Chennai district, hence raw material for processed milk products is not a constraint. Opportunities exist in all value added milk products such as milk sweets, ghee, cheese, butter and also in specialised milk foods targetted at patients, children and packed and flavoured milk for sale

                        Indicative Investment          Rs.8 lakhs

    8. Ice Plant.

      Water when made into solid mass by the action of cooling is known as ice. It is one of the essential modes for short term preservation of highly perishable commodities such as marine foods, fresh meat , poultry products, dairy products, fruits and vegetables. These goods can be stored for 2 to 3 days with ice, which facilitates the transportation of these foods to the consumer market. Ice is also used in the chemical, pharmaceutical, canning and freezing industries. It is being used for chilling synthetic fruit beverages.

      Except for upper middle class and rich house holds who own refrigerators, there is hardly any house-holds who are not using ice during summer season in one form or the other. There is also demand from tea-stalls, hoteliers, restaurant, clubs and industrial houses for storage and chilling purpose. It is also used for preservation of fish and other marine products. Ice plants have good scope in fish catching areas especially in coastal areas of the district.

              Capacity                 2M.T./day

              Indicative Investment         Rs.25 lakhs

    9. Mushroom Processing (export Oriented).

      The market for mushroom is growing at a faster rate world over. World consumption of mushroom has gone up by 10 times in the last 30 years. Indian export of mushroom is about $ 8 million in 1997 besides the increasing consumption in home market. There is a huge market in the U.S., Canada and Germany for Indian mushrooms.

      So far, countries like China, Indonesia and Chile are dominating the world market. These countries were highly subsidising the product and so it was not possible for the Indian companies to compete with them. At present, the US has imposed heavy anti dumping duties against these countries. This has brightened the prospects of Indian companies. Few units can come up in this district which can exploit the export market.
  1. Gold Jewellery.

    According to the Gem & Jewellery Export Promotion Council, India enjoys the status of world leader in this field in the international market. India had exported diamonds worth $ 6.178 billion, Gold Jewellery amounted to $ 1.123 billion and coloured gemstones to $ 6.178 billion during 2000-01. The export of gem & jewellery during 2000-01 was lower by 4.9% compared to the previous year. But the Gold Jewellery sector had maintained a growth rate of 4%. At present U.S.A. is the major importer of these items from India followed by Hong Kong, Belgium, Japan and South East Asian countries. To tap newer area, the Australian and European markets are being explored.

    Diamond exports have been accorded priority status in view of their potential. India accounted for 55% (in value terms) of the world diamond market. There is ample scope to achieve the top level in the gold jewellery sector also.

    The Government of India cut the customs duty on import of cut and polished diamonds and platinum from 40% to 15%. This would help the exporters in importing the reqired varieties of cut and polished diamonds for use as studding in gold and Platinum jewellery .

    It is estimated that the export of studded jewellery may grow by over 10 percent during this year. The growth in the demand for these products provides scope for further development in this sector in the district

  2. Textile and Textile based Industries.

    1.  Readymade Garments

    Clothing is an essential requirement of every human being and readymade garments are gaining popularity because they are fashion oriented, readily available and more economical than those traditional type of ordered to stitch garments. At present there is good demand for children garments, nighties, blouses, pants, shirts jeans, aprons churidars etc. in the domestic markets. Apart from this, there is good demand for Indian textile and readymade garments through out the world. As per AEPC reports the over all Indian garments in the international market is however a mere 2.4% only. There is good demand in Countries like Japan, Australia, Switzeland, Honkong,South Africa, Hungary, Latin America, West Asia, New Zealand, and Far Eastern Countries. Following are the main product mix:

    (i) Shirt (ii) Ladies Blouse (iii) Jersseys (iv) Pullovers (v) Gent’s shirts (vi) Ladies’ jackets (vii) pyjamas (viii) Night dresses (ix) Glouse and mittens (x) Brassiers (xi) Swi,m wear (xii)Track suits (xiii) industrial and occupational garments (xiv) Bath robes and shorts (xv) children garments etc

    2.  Woven Labels for garments.

    Since the demand for readymade garments are increasing, the demand for labels will also increase automatically. Few number of units can be established in Chennai as there is only few units in Tamilnadu manufacturing labels. There is good demand for labels also as it is a means of advertisement for tailors and garment exporters.

    Indicative Investment Rs.5 lakhs

3. Surgical dresses.

Wearing of suitable dresses in hospitals and health clubs by the Doctor and supporting staffs has been accorded a very high priority by the hospital administration in order to identify the different personnels and also to keep some decorum The great difficulty in washing and wearing the dresses after every surgical operations by the hospital administration, coupled with chances of transfering the germs from one to another has lead to usage of disposable garments.

Surgical dresses can be made from white bleached, deep dyed cotton twill fabric and non-woven fabric of suitable quality. These are worn over the normal dresses during performing work. There is exclusive dresses meant for surgical operation which can be worn and thrown after each operation. These dresses are made from non-woven textile fabrics of suitable quality. Advantages of non-woven fabrics for the manufacture of surgical dresses are light in weight, cheaper and available in many colours etc.

Among various hospital garments, non-woven disposable garments has distinct market demand in domestic and international market due to its various advantages. Massive growth in population in developing countries and rising standard of living has helped in creating a vast potential for health care textile units. Health care textiles have well established market in the developed countries where the people are conscious of the risks posed to the health care workers, especially from blood borne diseases.

Production capacity. (per annum) Quantity (Pc)
1. Operation gown 75,000
2. Nurses gown 75,000
3. Surgeon Hood 1,50,000
4. Nurses Cap 1,00,000
5. Face Mask(3 layrred) 1,00,000
6. Face Mask(4 layrred) 1,00,000

                  Indicative Investment                              Rs. 20 lakhs

  1. Renewable sources of energy from bio-mass.

    Local renewable energy resources available at low cost utilised to generate electricity. According to a study conducted by Tamilnadu Energy Development Agency, the country produces 350 million tonnes of Biomass per year which was equal to 2 million tonnes of coal in terms of heat value. This can generate 22000 M.W. of power annually.

    25% of energy needs of the district could be obtained from waste alone and taping indigenous energy sources should become an integral part of multi-storeyed building contruction. It would make sound sense if renewable source of energy was used to generate power for the coastal activities like cold storage facilities for fish etc.

    There is good scope for setting up Biomass processing unit in in different licality of the city , harnessing the industrial and other biomass residue materials through suitable projects ranging from 100 to 1,000 K.W. capacity.

  2. Chemical and Allied Industries

    Fibre Glas Reinforced Plastics. (FRP).

    FRP in India has taken shape in 1960s with a single resin manufacturer and a lone source of fibre glass. Over the years, the industry has grown steadily, but at a slower pace. Today there are four suppliers of fibre glass apart from the imports. There are many resin manufacturers in the organised as well as unorganised sectors, mostly catering to the regional customers. Manufacturers of resins with large capacities can be promoted to popularise indigenous brands. Tax structures are to be modified to make the indigenous materials more attractive. Various units of CIPET disseminate the necessary technical information through out the countries. AIRPMA and FRP Institute are working towards the promotion of FRP. Defence applications are being explored by several laboratories. There is good scope for manufacturing FRP products.

    1.  FRP Doors and window frames.

    In our country, wood has been the preferred material form for making building products. The indiscriminate use of wood has led to serious environmental and ecological crisis, resulting in rapid reduction of forest cover. Hence there is an urgent need to develop suitable substitutes for wood-based building products. The alternative which merits attention is the manufacture of low cost GFRP (Glass Fibre Re-inforcement Products.) building materials to meet the demands of the housing and building sectors.

    The doors made of(GFRP-PUF) sandwich composites offers special advantages compared to those manufactured from traditional monolithic materials such as wood and metals as they possess unique features like waterproof, corrosion resistant, termite resistant , low cost etc.

    Market potential of this product lies in Civil Engineering activities. It is estimated that about 6 million houses would be built annually in the country taking into account the programs of the various State Housing Boards and several other private and public agencies. Such a massive scale of building activity would need over 60 million doors and door frames. At present this demand is met only by wood and timber.

    Composite Technology Centre (COMPTEC), IIT Chennai and RV-TIFAC composite Design Centre have come forward to promote the use of FRP doors as a replacement for wooden doors.

    2.  Paper Bags

    Paper bags are common packaging material being used by cloth merchants, confectioners, grocers, bakers, dry cleaners, sweet meat dealers, vegetable dealers etc. Due to banning of plastic carry bags below 20 mm micron by the Government, the consumer industries of plastic carry bags are compelled to the usage of paper bags in one form or the other. This switch over from plastic carry bags to paper carry bags has created a very good demand for these items.

Capacity/annum 13.50 lakh numbers of (size 42 cm x 60 c.m.)
Indicative Investment Rs. 15 lakhs

3.  Recycling of Paper Waste for manufacture of paper/paper boards.

Waste paper recovery rate in India is one of the lowest in the world, which implies that large quantities of used papers are wasted without productive utilization. Waste paper is a low cost regenerative source of cellulose fiber. It is a promising raw material for the paper/paper board production as the cost of manufacturing is less as compared to using the forest-based raw materials. Thus ecologically as well as economically utilizing of waste paper for paper/board making holds lot of potential.

Paper and paper boards are very important to a developing nation. The different grades of boards commonly used are grey boards, mill boards, file covers and straw boards. These items are in good demand for packaging purposes. The annual production of paper and paper boards in India is estimated to be around 3.00 million M.T. per year and the actual demand is expected to cross 4.00 million M.T. Large quantities of waste paper are available in and around Chennai City. There is good scope for setting up paper/paper boards by recycling of waste paper.

Technology and support services are available with Indian Institute of Chemical Technology (IICT), Uppal Road, Hyderabad—500 007.

Indicative Investment Rs. 35 lakhs

4. Rubber Crumb

Rubber crumb or rubber powder made by grinding rubber waste is used as a cheap filler for manufacture of tyre flap, various types of industrial moulded goods, brushes, rubber door mats, rubber floor sheets, hawai chappal, micro cellular sheets etc. Use of the rubber crumb reduces the cost of product and at the same time it helps to reduce the hardness of the product, reduces the weight of the product and so the density of the product is also reduced.

Indicative Investment Rs. 10 lakhs

5.  Re-refining of used Lubrication Oil.

Lubrication oil is a petroleum based product used in automobile, machine shops, etc. After service life the oil is removed and disposed. It is a renewable resource which can be reclaimed and regenerated for reuse. Considering the ever growing demand for petroleum products and dependence on import for crude oil, India cannot afford to waste it. Various processes have been developed in India and abroad, for the reclamation of waste lubrication oil Among the processes Acid clay method is considered to be a cost effective and time tested. The process technology is indigenously available. The main raw material used is spent oil, which is available indigenously in huge quantities.

Lube oils are the life-line for industrial and automotive equipment as also various consumer appliances. Since virgin lube oils are petroleum based product, any increase in crude oil price automatically increases its cost of production. Also crude oil reserves are fast depleting. In the light of the above scenario, refining of used lube oil has gained great momentum. In India, the consumption of lube oils are ever increasing in view of consistent growth in automobile production and use. Hence the market demand for re-refined oil would not be a problem. The oil can be sold in bulk to Oil Companies and major lube oil blenders.

Indicative Investment Rs. 75 lakhs

6.  Mineral Water.

Water is consumed for drinking purposes. In India, mineral water is obtained directly from natural sources or the potable water is fortified with minerals. Mineral water is bottled under very hygenic conditions under strict quality control before being marketed . Its major use is in five star hotels, hospitals tourist places and festival places, where good quality pure water is required for potable purposes. It is marketed at places and regions where hygenic drinking water is not freely available.

The consumption of mineral water is linked with tourism industry as the concept has virtually been imported from the western countries. The necessity and hygenic nature of the product has led to an increase in its consumption in mainly the top hotels. Indias potential for tourism is limitless. As the ordinary water contains so many toxic elements, impurities some time prove fatal to human being. In urban life it is not possible to get clean water as the water contains dissolved impurities which are not visible to naked eyes. Eventhough, the poor people cannot afford to purchase mineral water for daily drinking purpose, the upper middle class and higher class people are purchasing mineral water, especially in urban areas where pure potable water is not available. So the demand for this product is increasing steadily with the increase in hotels, restaurant, travel, tourism, festivals and urbanisation etc.

Capacity 10,000 LT/day
Indicative Investment Rs. 50 lakhs

7.  Enzymes.

Development and application of modern enzymes are in a stage of infancy in the country. Enzymes has various applications. The Indian market during 1997-98 for enzymes is estimated at Rs.800 million. The major markets are today in textile, detergent, leather, pharmaceuticals and dairy industry.

Enzyme usage in textile sector can be classified into mainly five areas viz., desizing, bio-polishing, bio-washing, bleach clean and fibre modification. As for denim jeans processing, enzymes are key material. India’s textile enzyme market is expected to grow considerably. Most of the major branded jeans companies in the world have established their presence in India. India’s textile market is expected to grow considerably in future.

Enzyme usage in leather segment is also anticipated to grow considerably in volume terms. India is today the fourth largest leather producer in the world and with environmental regulations becoming increasingly stringent, Indian tanneries will be forced to use more and more enzymes partly replacing currently used chemicals for tanning, dyeing, etc. as far as possible. This is expected to result in a significant reduction in the volume of harmful effluents generated, and the cost of the treatment and disposal.

Enzyme usage in detergent Sector is also a major sector where the usage of enzymes is expected to grow rapidly in the near future. Detergent enzymes have the largest market of Rs.14 crore and accounts for nearly 33 percent of total market. Household laundry, household dish-washing and industrial laundry are the three segments of the market for enzyme-based detergents. Proteases, amylases, lipases and cellulases are the main enzymes used here.

Currently very few companies like Procter and Gamble (Ariel), Hindustan Lever (Surf) and Henkel (Henko) are using detergent enzymes but lots of other small detergent manufacturers in India have started using enzymes and the detergent enzymes market is expected to grow very soon.

Enzymes are also used in starch, food and beverages industries to modify carbohydrates like starch, sucrose, glucose, fructose etc. Enzymes modifying proteins, like rennet used in manufacturing of cheese and protease used in tenderisation of meat or production of protein hydrolysates.

Enzymes modifying lipids for hydrolysis of oils and fats to give monoglycerides, diglycerides and free fatty acids.

The market for starch conversion and use in beverages is also likely to grow very fast. The growth of baked confectionery segment has been very high in India. There is good scope for setting up of enzyme manufacturing units.

8. Silver Extraction from waste solution.

Silver is a precious and important metal. It is mainly used in Photography, X-ray films, jewellery etc. In our country the share of mines in silver production is just two third of the total silver requirement. Rest one third is recovered from waste chemicals. The main raw material sources of silver extraction are the waste solution received from studios, computerised colour labs, manual colour labs, x-ray centres, scan centres, block makers, lithographers, offset printers, news paper printing presses, screen printers, Industrial x-ray, aerial photography, cine studios etc.

With the development of science and technology and increasing population, their facilities are also increasing and the raw material for extraction of silver will be also increasing continuously. There will be good scope for setting up silver extraction units in this district. The process of extraction is very simple and this industry can be set up with small investment.

9. Disposable Syringes.

Disposable syringes are made of plastic material and are used in the field of medical and veterinary sciences. Due to their availability in sterilised condition, ready to use and cost effectiveness, disposable syringes are fast replacing the age old glass syringes. Glass syringes were generally heat resistant and were to be sterilized after each usage. The only disposable component was the needle. The whole syringe had to be sterilized to enable reuse. The use of glass syringe was subjected to spreading of infectious diseases. To overcome these implications it was felt necessary to introduce the concept of disposable syringes. This concept came to India in the year 1974 after WHO issued a directive to the Third World countries regarding the merits of its use

The advent of AIDS and other viral diseases further added to the increase in the use of disposable syringes. It is learnt that the concept of disposable syringes use is bound to increase in the three States (South Zone) where the usage is relatively higher as compared to the other States.

Disposable syringes are mostly injection moulded from polypropylene. In view of the expanding domestic and international markets, there is good scope for setting up industries in this line of activity.

Indicative Investment Rs. 20 lakhs

10.  U.F./Nylon buttons.

Buttons are the essential requirements for all the dresses and garments used by every society. To day, due to certain inherent advantages, buttons made of plastic materials have completely replaced the other conventional materials like wood, metal etc. Availability in attractive colours ease of fabrication to designed shape and size, light weight, anti-corrosive characteristics have made plastic buttons a favourite choice of garment designers. Ease in matching the shade of buttons with the textiles, versatility in designs to meet the requirements of changing fashion and comparatively lower cost have further added to the popularity of plastic buttons Plastic buttons are mainly manufactured from polyster sheets or acrylic sheets by die punching technique and from Urea formaldehyde moulding powder by compression moulding technique. Garment manufacturers for export and tailors are the main users of buttons. There is always a ready demand for buttons as once used they are not reused. It has been found that tailors are generally not brand –conscious and they buy buttons regardless of brand name. It is found that at times there is a shortage of buttons supplied in the market. This is mainly because there are very few buttons manufacturers in Chennai city. The future demand for buttons will be increasing in the State/country, since the demand for readymade garments is increasing in domestic as well as international markets. There is good scope for setting up plastic button manufacturing units in the district depending on the tailors and garments manufacturers in and around the districts.

Indicative Investment Rs. 25 lakhs

Chemical Used in Pharmaceutical Industries.

11. Casein

Casein is a phospho- prorotein occuring in milk and cheese and contains 80-90% protein. Casein finds application in a number of industries such as leather, paper, matches, plywood and pharmaceutical industries. Casein finds application in the manufacture of casein blue which is used in paper and textile industry. It is used as nutrient in food and pharmaceutical industry. Present demand for this item is 250 tons per annum and the estimated demand by 2005 A.D. would be around 10,000 tons. Global demand for this product would be around 2 lakh tons per annum. Growth rate for this product is about 5% per annum.

12. Sodium Lauryl Sulphate.

It is used extensively in the manufacture of toilet soaps, cosmetic preparations, synthetic shampoo, shaving cream and tooth paste. It is used as dispersing agent in the pharmaceutical industry for the preparation of tablets and syrups. Present Indian demand for this product is 4000 tons per annum. SLS is considered to be a superior non-ionic surfactant due to its several important characteristics that it can impart to the finished products. There is good potential for this product.

13.  Dicalcium Phosphate IP Grade.

Pharmaceutical grade Di-calcium phosphate is used as an excepient in the manufacture of tablets. It is also used as a protective base for vitamins, vitamin and mineral premixes. Dentrifice grade is used as a stabilizer in the manufacture of tooth powder and tooth paste. Present demand for IP Grade DCP is 6000 tons and Dentrifice grade DCP is 5500 tons per annum in the country. There is a good demand for this item in the export market also.

Chemical Used in Miscellaneous Industries.

14. Dioctyl Phthalate (DP).

Dioctyl phthalate is used as plasticizer in the manufacture of PVC compounds like cable, sheets, tubings, PVC paste, moulded articles, upholstery, etc. About 65 producers of phthalate plasticizers exist in the country. Present Indian demand is 63,00 tons per annum.

Global demand for this item is 2.5 million tons per annum. Due to urbanisation there is increase in the demand for this item Further there is a good export demand for this product.

Molasses and Alcohol-based Chemicals:

15. Oxalic Acid.

It is widely used in industries like leather, tanning dyestuff manufacturing , textile processing, metal polishing, antibiotics, paints and varnishes, electroplating, automobile industries rubber and paper processing. It is also used in the manufacture of diethyl oxalate, which is used in the manufacture of bulk drug-sulpha methoxazole. The indigenous suppliers include Excel Industries Bombay and Punjab Chemical and Pharmaceuticals Lt., Punjab.

The domestic demand is established to be 14,700 tons per annum. Export potential estimated to be around 2,100 tons per annum. The growth in demand is expected to be around 10-12% per annum. But there is stiff competition from China and Thailand.

16. Yeast.

Yeast is the most suitable fermenting agent. The commercial grades of yeast include Baker’s yeast and distiller’s yeast, fodder yeast, food yeast and active dry yeast. Of the various grades, Baker’s yeast is the most important. The entire domestic demand is met by indigenous production. The domestic demand is estimated to be around 2,100 tons per annum

  1. Mechanical Engineering Products

    1.  Automobile Components.

    The small scale industries in India in the auto ancillary sector have mastered the art of manufacturing automobile components suiting Indian conditions, particularly the roads. As the automobile demand has grown over the years in small numbers, these units have developed economies of scale even in small numbers.

    Based on the major automobile units like Ashok leyland, Standard Motors, Hindustan Motors, Simpson Group, Enfield India Ltd. which manufacture heavy vehicles, light vehicle, motor vehicles, earth moving equipments and two wheelers, as well as the demand amanating from the automobile repairing and servicing stations in and around the city , a few units can come up in this line of activity. Apart from the above domestic demand, there is good scope for export of automobile components. Export of auto components from Tamilnadu accounts for around 50% of the country. Ashok leyland in collaboration with Iveco is setting up another production facility for trucks. Amalgamation is expanding its tractors manufacturing capacity for trucks. In this setting, auto components industry in Tamilnadu is on the threshold of rapid expansion. Given the competitive advantages of Tamilnadu in auto components industry, government has identified this sector as a major thrust area. It is estimated that the export would grow at the rate of 20% per annum in the next five years. The nature of customers in the export market has under gone considerable change and most SSIs are now graduating to principal suppliers rather than cater to the after markets. According to ACMA the following automobile components have good scope:

    Automobile components having scope

S.No. Items Investment in P&M Rs.Lakhs Working Capital Rs.lakhs
1 Distributor 10.00 3.0
2 Gears 40.00 15.0
3 Starter Motors 8.72 4.00
4 Cylinder Liners 10.54 3.50
5 Radiator 35.00 15.00
6 Spark plug 10.00 4.00
7 Carburettors 45.00 15.00
8 Wheel ring gear 8.00 3.00
9 Fuel Pump Nozle Holders 5.00 2.00
10 Fuel Pump Nozle 5.00 2.00
11 Fuel Pump ELEMENTS 5.00 2.00
12 Fuel pump delivery valves 5.00 2.00
13 Brake assembling sets 8.00 3.00
14 Shock absorbers 60.00 20.00
15 Axle shafts 8.00 4.00
16 Valves 13.25 5.00
17 Piston Pins 8.00 2.00
18 Piston 14.0 8.00
19 Piston Rings 8.00 2.00

2.  Auto Conversion Kit.

Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) have been recognised as an alternative fuel for automobiles. Usage of this fuel will reduce air pollution. Usage of this is also under the consideration of the government. This provides good market scope for conversion kits, on-board storage cylinders, filling valve, pressure regulators, gas/air mixture etc. Cost efficiency of CNG and LPG vi-a-vis petrol is also attractive. Conversion kits for two wheelers can also be effective in view of the high vehicle population available in the District. Aspiring entrepreneurs may have tie up with the two wheeler manufacturers of the State.

3. Safety Valve System for LPG-run vehicles:

There is a good domestic market and export market from Australia for LPG cylinders with integrated safety valves for automobiles. The government of India has approved usage of LPG as alternative fuel to automobiles. This offers a good market scope for the product in the domestic market.

LPG cylinder when used in vehicles can get warm especially when kept in the hot sun for extended periods. In such a situation the gas may expand. So, a safety valve to release the pressure formed in a controlled manner is a must. Further a system to monitor the flow of gas from the cylinder to the engine and to cut the flow when there is excess supply of fuel should be installed to prevent any major disaster. In addition, another safety system to automatically cut off the supply of gas once the engine stops, is a must. All these provisions can also be integrated in the conversion kit.

4. Tool Room

Tool room facility workshop is a servicing industry to cater to the needs of other industrial units which require jigs, fixtures, press tools, die sets, forming tools moulds etc. as per their products. Tool room facility is a necessity for production of tooling in all disciplines of engineering industry whether mechanical, electrical, electronic or plastics etc.A tool room can serve a number of SSI units situated in any area. The demand for a tool room depends directly on the growth of other industries.

Indicative Investment Rs.40 lakhs

5.  Machines Tools and Accessories.

Indian Economy is expected to grow at more than 7% p.a. Machine tools play an important role in the development of industries and agro based tools. This coupled with replacement demand offers significant growth prospects to this industry. This industry could also be able to find markets in neighbouring SAARC countries. With strategic tie-ups with well known international companies, Indian made machine tools can also find opportunities world wide.

6.  Screen Printing Machine..

Screen printing machines are used for printing over the various objects like cloth, garments, books, shoes, key chains, pens, bottles etc. Screen printing machines are required in different models and capacity. Since screen printing process required in various fields, the demand for the machine is also increasing simultaneously.

Indicative Investment Rs.7 lakhs

7.  Welding Electrodes.

Welding electrodes are required for arc welding purposes. Previously this item was only in medium and large scale sector. But now a days this item is manufactured in the small scale sector in good quality and competitive prices. Even though there are quite a good number of units in the small scale sector, there is a large demand for this item due to large construction, fabrication work, heavy plants coming up in the country due to liberalised economic and industrial policy of the Government. There is scope for increasing future demand for the item

Indicative Investment Rs.80 lakhs

  1. Electrical and Electronic Industries.

    1.  Constant Voltage Transformer.

    Electrical appliances and utilities offer better performance at rated voltage. Hence stable voltage is necessary for such appliances. The power source available is not always at guaranteed voltage. The usage of electrical gadgets, miniature appliances, electrical and electronic items are growing up steadily. On the other side the electricity distribution network does not meet the requirements of power at steady voltage. Hence the demand for devices such as constant voltage transformer has been growing at the rate of 30 to 40 percent annually. The demand could not be met by the existing units since the usage of electrical appliances are very high in the city. So a few number of units can come up in the district.

Estimated production capacity per month Investment
Variac of 2 amps out put 200 Nos. Rs. 40 lakhs.
Variac of 4 amps out put 200  "  
Variac of 8 amps out put 200  "  
Variac of 15 amps out put 200  "  
Variac of 28 amps out put 200  "  

2.  Electronic Components

The electronic industry is undergoing a restructuring of the existing activities and diversification of product range. In general, the electronics hardware industry comprises consumer electronics, industrial electronics, computers, communication and broadcast equipments, strategic electronics and electronic components. The electronics components sector recorded substantial growth in exports from Rs. 3 billion in 1994-95 to Rs.7.6 billion in 1998-99. It is also observed that electronic components occupied the largest share of about 42 percent in total electronic hardware exports during 1998-99.

Overall market for electronic components will continue to grow at a high rate as it caters to the high growth entertainment, I.T. consumer durables, automobile, telecommunication and instrumentation sectors. And as the technology level in these sectors is increasing rapidly, the demand is for components of high quality, reliability and technology at competitive prices and committed deliveries. Hence, it is essential for SSI to upgrade their scale of manufacturing processes, quality systems and technology to meet customer requirements.

A number of developed and newly industrialised countries are also looking at the possibility of shifting production bases to India, particularly in low-end and labour intensive products in their countries. There is also opportunity of taking contract manufacturing of components/sub-systems to large multinational companies whose focus is now on assembly of systems and marketing and therefore, would like to outsource their requirements components/sub-systems globally from units in developing countries like India.

A typical list of products that can be competitively manufactured in SSI sector for niche markets is given below:

  1. Capacitors
  2. Resistors.
  3. Cables
  4. Printed circuit boards
  5. Transformers
  6. Switches
  7. Press metal components
  8. Injection moulded plastic parts

3.  Electromagnetic relay.

Electromagnetic relays are mainly used in Electronics and telecommunication equipments. These relays use the principle of electromagnetic operation and switches on/off the loads. Miniature and sub-miniature types of relays are used in transmission and communication equipments where as large size and bulky relays are used in telecommunication switch boards and industrial applications. Remote control and telematry are being applied in oil and natural gas industry, telephones, telegraphs, mining metallurgy, power electronics, steel, paper industries and other processing industries. Telecommunication alone is having a good demand i.e. a million piece per annum whereas the industrial electronic fields need more than one lakh pieces every year. Eventhough a few units are manufacturing to the required commercial specification, many of them are not manufacturing to meet the professional specification. Hence there is scope for some more units to manufacture reliable magnetic relays in small scale sector.

4.  Electronic Toys for Export.

The district with its vast skilled man power in electronic field has good scope for manufacturing this product. This sector offers massive market potential. The industry is experiencing a revolution. According to the Electronics and Computer Software Export Promotion Council, export of toys during 1998-99 was an impressive Rs.75 crores compared to Rs.1.57 Crores in 1991. Still the share of India in the global trade is just 1 percent only, compared to the giant share of 50 percent held by China. Global trade in toys has increased by 66 percent in the last six years and is currently estimated at over US $ 100 billion. The industry offers very high potential for development in the district. The Metro with its highly skilled man power in this field can reap the fruits in this Sector.

  1. Software Development and I.T. Enabled Services.

    The information Technology (IT) Industry in India is among the fastest growing segments of the Indian Industry, compounded with annual growth rate exceeding 50 percent. The key elements which have made Tamil Nadu an important place in this area are availability of skilled and educated man power, comparatively higher standard of educational Institutions, sound infrastructure and lower costs of operation. Apart from these, the presence of an International Airport and a Major Sea Port in Chennai have also helped the growth of IT Industry in Tamilnadu.

    The potential for further growth of I.T. industry in Tamilnadu is enormous with I.T. penetrating all spheres, including Government Departments, Educational Institutions, Banking, shopping, Entertainment and a whole gamut of other consumer applications.

    Software/I.T. enabled services offer wide scope for development with very high employment potential. According to a report released by Mckinsey - Nasscom groups the software market is expected to grow by 2008 to $ 87 billions with export market estimated at US $ 50 billion and the domestic market at US $ 37 billion. In 1998-99 export market in these services provided employment to around 10,000 people which is expected to grow 23,000 by year 2,008. I.T. enabled services include processing of credit card transactions, medical claims, loans, pay rolls, answering customer queries, providing information systems such as data centres, networks, medical transcription, legal data base services etc. The industry is lucrative at the outset but needs utmost quality. Even though the growth of this industry has fallen down considerably after the destruction of World Trade Centre in the U.S.A. the current slackness is considered to be temporary only. The software and I.T. enabled services industry is expected to pick up shortly.

    1.  Internet Service Station.

    Present day is going through a revolution in information technology. The computer and the internet technology are making the whole world a global village. Information technology has virtually conquered time and space. This revolution in information technology is influencing the socio-economic set up all over the world. Internet Service Station file transfers, availing service of creating web sites etc.

    Information required in our day to day life such as for business purpose, for academic purpose, professional advancement etc. are accessible from all over the world through internet using computer and suitable software. This is possible only if we have a computer and other accessories such as modem and software.

    Indicative Investment Rs.8 lakhs

2.  Medical Transcription.

Doctors in the U.S. tape patient information on Dictaphones which are transcribed for documentation. Every hospital, diagnotic centre, medical special care centre require this service. An estimated 700 million hospital events are transcribed every year in over 6,000 hospitals in the U.S. The total size of the market in the U.S.A. is estimated to be of 10 billion dollars per year. Since Indian transcriptionists are far cheaper than their U.S. counterparts, this is emerging as a huge business opportunity.

Indicative Investment cost Rs.30 lakhs

3.  Call Centers

A new concept, multinationals are setting up call centres to answer customer queries from around the world. Since a physical interface with the customer is not required, call centres can be located anywere.

The business of call centres to serve the outsourcing requirements of multinationals and Indian companies is expected to grow at an annual compounded growth rate of 18 percent. The bulk of the expected $ 142 billion global market for I.T. enabled services by 2008 is likely to be accounted for by customer interaction services which form a major component of the call centre business. In India as of March 1999, there were 440 call centres and 9,000 agent positions, mostly in the banking, telecommunications, airlines, hospitality and courier Industries. Most of the call centres initially were in-house centres catering to companies own customers. The business, however got a boost when MNCs began to outsource their labour intensive activities like payroll, accounting, inventory management, customer care, credit appraisals etc. from India

In view of the projected growth of the business, there is good investment opportunities in the call centre business.

Indicative Investment Rs.15 lakhs

4.  BackOffice Operations

This category includes a variety of activities ranging from payroll accounting to expenditure revenue accounting to airline reservations to international auditing to credit appraisals.

Indicative Investment Rs.10 lakhs

5.  Cyber marketing

             Indicative Investment      Rs.15 lakhs

6.  E-commerce

             Indicative Investment      Rs.15 lakhs

  1. Hotel, Motels and Restaurants

    The hotel industry is a capital intensive industry which can be opened at cost varying from Rs. 20 lakh to Rs.90 lakh. The growth prospects of the Industry has been quite steady. Chennai district has a number of pilgrim and tourist centres and the City is visited by persons for different purposes like business, education etc. The existing hotel facilities are not sufficient for accommodating the ever increasing visitors to this Metropolitan city. A few number of hotels/restaurants /lodges can be built.

  2.                     Indicative Investment      Rs.90 lakhs

  1. Tourism and Recreational Activities.

    Chennai city is visited by a number of tourists from various parts of the country and world around. But tourism and recreational activities have not been provided the attention they deserve in this district so far, even though this can provide employment and livelihood to a number of unemployed people in this district through trade and other activities connected with the industry if developed properly. Tourism is a booming industry. It has good scope for assured return. Prospective entrepreneurs, however, have to realise its full potential.

    There is enormous scope for the development of tourism based activities as well as recreational activities. Some of the activities suitable are providing, rope- ways, theme parks, regular transport services to tourist places for water games etc.