CHAPTER – VI

INDUSTRIES IN DHARMAPURI DISTRICT

People in Dharmapuri district have been dependent on primary sector as the

main source of income and livelihood. Rain fed agriculture with animal husbandry
has provided employment to the large rural population of this district. The secondary
Sector is prominently missing in this district barring a few small-scale industrial
units. Most of the small-scale units are in and around the Dharmapuri town, the only
municipality and urban centre. The units have come up in Dharmapuri block due to
the town being situated on the national highway NH 7, piped water supply from
Panjapalli dam, uninterrupted power supply, availability of skilled and semi skilled
workers, SIDCO industrial units and DIC.

Currently, the district has no major industries except a few agro-based

industries. A number of Sago Mills in Dharmapuri and Harur taluks are engaged in
the production of starch from Tapioca. In Harur taluk, there is a solvent extraction
unit under private sector producing oil from rice bran. There are three spinning mills
under private sector in this district. The main horticultural produce of Dharmapuri
District is tapioca and mangoes. Having ideal agro-climatic conditions in this
district, measures have been taken no increase greatly of these productions. Tapioca
is used as a raw material for manufacturing sago and starch.

There are five rural silk reeling training centers, three grainages, rural mini-
filature unit, four cocoon markets, a primary seed grainage, and two demonstration-
cum-training centers. The district is connected with Mettur Electricity system and
above 1 lakh pump sets have been provided power.1

GOVERNMENT INITIATIVE

Government has taken various measures to uplift this economically

backward district. Central and state Government schemes were launched and
executed successfully. Being a drought prone district, schemes like Drought Prone
Areas Programme were implemented under Central Government initiative and it

                                                            
1
Human Development Research and Co-ordination Unit State Planning Commission, District Human
Development Report Dharmapuri District, University of Madras (Chennai, 2011), p.9.
covers all forms livelihood which the rural poor undertake, thereby bringing
tremendous changes in their lives.2

DROUGHT PRONE AREA PROGRAMME

This programme was implemented in drought districts throughout India by

Central Government. As villages are severely affected by drought, threatening
agriculture, the main economic activity in villages, the scheme is implemented to
provide alternate livelihood to rural poor. Fisheries, animal husbandry, and cottage
industry are given preference and people get maximum benefit to change their
economic standard.

RURAL INDUSTRIES PROJECT

This centrally sponsored scheme has enabled the district to develop in the
field of rural industries. Under this scheme, financial aid is designed to attract more
and more involvement in industries by offering low rate of interest at 2 ½ per cent to
Industrial co-operatives. This scheme has espoused the growth of co-operatives and
as a result following co-operatives were started in this district during 1972-1974.
They are as follows.3

1) The Daveerapalli Cumbly workers Industrial co-operative Society Ltd.

2) The Denkanikottai Bamboo Basket Makers Co-operative Cottage

Industrial Society Ltd.

3) The Anchetty Firka bathi stick splints producers Industrial Co-operative

Society Ltd.

4) The Barur-Arasampati Adidravida coconut cooperative society.

5) Thatch maker’s co-operative cottage Industrial society Ltd.

These co-operative societies have taken first initiative towards industrial

development of Dharmapuri on a small scale and as a result there are many such
societies today.

CENTRAL INVESTMENT SUBSIDY SCHEME

The Central Investment Subsidy Scheme was introduced by the Government

of India with effect from 26 August 1971 for granting 10 per cent Central
                                                            
2
G.O. No. 752, Industrial Special, 10.02.1964.
3
Pulney Andy Senji P., Tamil Nadu District Gazetteers Dharmapuri, Government of Tamil Nadu
(Madras, 1995), pp.402-403.
88
Investment Subsidy (CIS) to the Small Scale SSI units which are located in 33
declared backward areas and the quantum of Central Investment Subsidy was
increased to 15 percent i.e. from 1973. About 30 taluks in Tamil Nadu are eligible
for this scheme and out of 30 taluks, seven taluks belong to Dharmapuri district
alone. They are Dharmapuri, Harur, Krishnagiri Palacode, Utthangarai,
Denkanikottai and Pennagara. The subsidy was disbursed through SIDCO.

POWER TARIFF SUBSIDY SCHEME

The Loco Tension Power subsidy scheme is implemented by SIDCO from

1980. As per this scheme, certain SSI units are eligible for power tariff.
Accordingly all registered SSI units in Dharmapuri District which consume Low
Tension power and who have started production from 1 January 1980 are eligible for
subsidy.

Besides these schemes, District Industries Centre has done yeomen service to
reduce economic equality throughout the district.

Though tuber flour mills are many in number, the mills found it difficult to
sell the finished products. The relentless efforts of District Industries Centre
resulted in setting up of a sales centre by National small scale Industries.

Though sericulture was profitable industry in this district it was not highly
developed. In order to motivate people, small scale Industries Investment and
National Small Scale Industries came forward to lend loans at the instigation of
District Industries Centre.

Ten Industrial complexes were built at Karimangalam, nine in

Pappireddipatti, twenty in Krishnagiri and ten in Pennagram by the District
Industries Centre. To provide employment opportunity to rural poor, 115 small scale
Match Box industries in and around Dharmapuri and 125 such industries in
Pommidi were established. 4

By these schemes, government tries to improve industrial climate the

sufferings of economically backward Dharmapuri and these schemes are first step
towards making Dharmapuri an ideal place for investment. Innovation in agriculture
and its allied activities, enhanced facilities for cottage industries and infrastructural
changes in Industrial units in Dharmapuri provide employment opportunities and
                                                            
4
Ibid., pp.404, 406 & Tamil Arasu, 1.12.1982, p.17.
89
raise the standard of living of the people. An ideal atmosphere is thus created for
equal distribution of economic justice throughout Dharmapuri.5

INDUSTRIES

Industrial development in Dharmapuri, especially in Hosur area began only

in the late 1970’s. The State Industries Promotion Corporation of Tamil Nadu Ltd.,
the main agency of the state, promotes large and medium scale units. It set up an
industrial complex at Hosur in a 1200 acres plot in 1975. Besides, it also provides
industrial plots and sheds for settling up of industries which are either self financed
or assisted by the TIIC. Under the ‘IDBI’s Seed capital Scheme, SIPCOT provides
financial assistance to industries up to Rs.90 lakhs. Apart from these, TIDCO and
SIDCO also have come up to help entrepreneurs to set up industries. In this
complex, there are various kinds of industries which are engaged in the manufacture
of trucks, automobile parts, motor cycles, mopeds, textiles, canned fruit and fruit
products, instant coffee, electronics, T.V, castings, forgings, cigarettes, abrasives,
textile, needles etc. 6

The Tamil Nadu Small Industries Corporation popularly known as TANSI

helped the development of sophistication in industries. The products range from
tooling, enameled copper wires and from wood to steel furniture. TANSI has set up
two units one for engineering works and the other for furniture works at
Krishnagiri.7

SIDCO, also an enterprise of the Government of Tamil Nadu, has set up

Industrial Estates at Krishnagiri, Dharmapuri and Hosur. The sheds constructed in
the industrial estates are allotted to the entrepreneurs on outright purchase scheme.

District Industries Centre was established on 12 June 1978 to guide

entrepreneurs towards the path of success. Its functions are as follows.

1) To draft schemes that strengthen profit making business.

2) To identify raw materials available in the district.

3) To estimate the skills of entrepreneurs.

4) To motivate interested small scale entrepreneurs.

                                                            
5
District Human Development Report, Dharmapuri (Chennai, 2011), pp.402-403.
6
Pulney Andy Senji P., op.cit., pp.377-378.
7
MIDS, Tamil Nadu Economic (Performance and Issues), Oxford & IBH Publishing (New Delhi,
1988), p.190.
90
 5) To provide financial aid to needy entrepreneurs.

6) To construct industrial complex for artisans.

7) To make available central funds to entrepreneurs.

8) To disburse loans granted under Rural industrial Plan.

9) To enable people to get interest free loans of state government.

10) To issue license for importing goods.8

II

LARGE SCALE INDUSTRIES

In 1980, Dharmapuri witnessed growth of large scale industries especially in

Hosur and later it disseminated to different parts of the district. A sample of large
industries are given below.

ASHOK LEYLAND

Ashok Leyland set up a plant at Hosur in 1980 which is engaged in the

manufacture of a range of medium and heavy duty commercial vehicles. The
vehicles which roll from the factory are ‘Taururs’18T Multi axle vehicle, Comet
special, Tusker special (13T) comet 4x4, Titan, Hippo thoulage, Hippo Dumper
Beaver Hanlage, Beaver Dumper and Beaver Tractor. The unit was licensed to
manufacture 1000 heavy duty vehicles only. Subsequently, it was licensed to
manufacture 2500 medium duty vehicles also.9

The raw materials needed are obtained by purchasing from Indian market
and government authorized agencies. Key inputs like Forgings, Aluminium and
G.I.Castings and steel are procured from Bharat Forge and Indian Forge, Ennore
Foundries and Steel Authority of India Limited respectively. The medium duty
vehicles have 99 per cent indigenous content and that of the heavy duty vehicles, it
is 75 percent.

BROOKE BOND INDIA LIMITED

Brook Bond India Limited, a private concern with headquarters at Calcutta

has the set up a large scale unit at the SIPCOT Industrial Complex, Hosur at a cost
of Rs.4,12,08,000 in 1983 which is engaged in the preparation of coffee powder.

                                                            
8
Tamilarasu, Dated 1.12.1982, pp.9-11.
9
Note. Received From Executive Director Ashok Leyland, Hosur, Dated, 26.8.1982.
91
The total licensed capacity of the plant is 1500 tones. The actual Production in 1984
was 3,10,035 kgs. In 1984, the unit provides employment for 71 persons and a sum
of Rs.3,50,811 was paid during 1984-85 by way of salary. Raw coffee seeds are
purchased in auction. The chicory is received in dried roasted condition, from its
sister factory at Jamnagar, Gujarat which constitute the ingredients in the
preparation of “Instant Coffee”, prepared by the extraction and spray drying
process.10 Raw coffee is roasted and granulized which is then mixed with diced
roasted chicory. It is then fed into extraction vessels from which extract is drawn.
After spraying it into a drying Chamber, the solids are recovered in powder form.
The instant coffee is marketed under brand name BRU, Brooke House, Indian
Instant Coffee and TRIPTI.11

THE DHARMAPURI DISTRICT CO-OPERATIVE SPINNING MILLS

LIMITED

A Co-operative Spinning Mill has come up for the first time in the district at
Uttangarai where cotton is grown in a large area in this district. The mill was set up
at the cost of Rs.7.3 crore. Financial assistance for establishing the mill was obtained
from Government of Tamil Nadu and National Corporation which have sanctioned
Rs.1.59 crores and Rs.1.51 crores respectively. The mill with 25,520 spindles went
into production during November 1984. In the beginning it provided employment
for 469 persons which included 225 Sri Lanka repatriates, 165 Adi Dravidars and 70
local people and also generated indirect employment for 1,300 persons.12

DHARMAPURI DISTRICT CO-OPERATIVE SUGAR MILL

Considered as the best sugar mill in Tamil Nadu it was established at

Palacode with crushing capacity of 1250 tones. It began its operation on 20
February 1972. It was administered by a 19 member Administrative Committee and
later in 1976, Tamil Nadu Government nominated an officer who took up
administrative division of the mill. Though the crushing capacity is 1250 tonnes per
day, the mill crushes 1500 tonnes. Farmers of 12,000 acres of lands who grow
sugarcane bring their products to this mill. As it is impossible to crush such a huge

                                                            
10
Pulney Andy Senji P., op.cit., p.380 & Lena Tamilvanan, Tamizhaga Mavatta Nool Varisai,
Dharmapuri (Chennai, 1987), pp.148-149.
11
Ibid., p.381.
12
Indian Express, 17.7.1985, p.5.
92
quantity, the mill sends about one lakh tones of sugarcane to mills in Thirupathur
and Amber annually.

With the help of State Trading Corporation-a State Government institution,

about 18,000 quintal of surplus sugar is exported to foreign countries by this mill.
Molasses-a by product of sugar- is used to manufacture paper. About 100 tonnes of
sugarcane give 4.5 tonnes of molasses on crushing. It is also used as fuel to generate
energy. So a tank with 4,000 tone capacity has been executed.13

This mill takes adequate measures to uplift the living standard of its
labourers. It has constructed 208 labour quarters and had rented them at low price.
Safe drinking water, electricity and better educational facilities to their children are
provided by the management. Besides, a full time hospital runs for the welfare of
the labourers.14

KOTHARI ELECTRONICS AND INDUSTRIES LIMITED

The Kothari Electronics and Industries Limited, a private company set up a

large scale industry at a cost of Rs. 14 Crores in technical collaboration with a
foreign plassy Italia spa, Italy in the SIPCOT Industrial Complex at Hosur which is
engaged in the manufacture of Polystyrene Capacitores box capacitos and AC
capacitors. The finished products under the brand name ‘KEIL’ find a market in the
Telephone and Television Industries. 15

T.V.S.GROUP OF COMPANIES

The Sundarama Clayton Limited set up two factories, one for the
manufacture of mopeds and the other for Railway products. The factories are at
Harita, near Hosur. The moped division was set up in August 1980 at a cost of
Rs.240 lakhs. The plant receives component from 222 supplies and the vehicle TVS
50 XL is marketed throughout India by a network of 175 dealers. The railway
products division has been commissioned in January 1984.16 The total investment of
the project is Rs.450 lakhs in 1985. This industry manufactures signaling relays,
point machines and air-brake systems for locomotive and wagons. The technical
know-how and the machineries are from Union Switch and Signal Division Standard
                                                            
13
Tamilarasu, 01.02.1993, pp.55-57.
14
Tamilarasu, 1.12.1982, p.24.
15
Lena Tamilvanan, op.cit., p.151.
16
Gabriele Dietrich, Challenging the Giant for Freedom Epic Struggle of TVS Workers, Economic
and Political Weekly, July 28, 1990, pp.1629-1631 & www.krishnagiriindustries.nic.in.
93
INC, USA. The needs of the railways with regard to these items are met by this
company.

The Sundaram Fasteners Limited set up a factory at Kothagondapalli near

Hosur in 1979. It is engaged in the production of automobile ancillary products in
technical collaboration with the Neymayar Company, West Germany.

TVS Suzuki Motor cycles Limited, formerly known as Ind. Suzuki

Motorcycles Limited, was set up at Harita in 1982 by Ind-Suzuki Motor cycles
Limited, an associated concern of Sundaram Clayton Limited with the financial and
technical collaboration of Suzuki Motor Company Limited, Japan. The total capital
investment is Rs.25 crores.17 The factory has a fully conveyorised set up for motor
cycle as well as engine assembly. It has also a completely conveyorised paint plant
incorporating pre-treatment, primer coat and top coat on a single conveyor line. The
pre-treatment is done by high electrostatic automated disc spray which can
incorporate four changes of color for the top coat. The electro-plating plant is
completely automated micro processor controlled and programmed. It has to be
noted that it is the first of its kind in India and Ind-Suzuki has been able to
commission it without any foreign collaboration as the collaborator. Suzuki Motor
Company, Japan looks after the import of the parts to be supplied. The plant has a
licensed capacity for manufacture of 2, 00,000 two wheelers.

TIDCO set up a number of industries in this district. Asian bearings Limited

is a joint sector project of TIDCO which has proposed to manufacture 25 lakh
numbers of ball bearings and 17 lakh numbers of cyclindrical roller bearings at a
cost of Rs.2,848 lakhs at Bagalur near Hosur. This project was launched in 1982 and
the technical know-how suppliers are Veb Kombinat Wadzlager land and Normetitle
Germany.18 It provides employment for about 1000 people and the product is used
in all engineering and automobile industries.

ASIA TOBACCO COMPANY LIMITED

Asia Tobacco Company Limited was set up by TIDCO in 1975 at Hosur in

association with Mr.K.S.Narayanan and Associates in joint sector for the
manufacture of 3,700 million cigarettes per annum at a cost of Rs.180 lakhs. This

                                                            
17
www.krishnagiri.tn.nic.in & Lena Tamilvanan, op.cit., p.151.
18
Pulney Andy Senji P., op.cit., p.383.
94
company markets its products under the brand name ‘DUKE’ which finds a ready
market in Tamil Nadu, Pondicherry, Karnataka, Andhra Pradesh and Kerala.

TITAN WATCHES LIMITED

Titan Watches Limited is being set up by TIDCO in association with Messrs.

Questar Investments Limited for the manufacture of two million watchers and watch
components at an estimated cost of Rs. 45.00 crores. This project will be located in
SIPCOT Industrial Complex, Hosur. Messrs. France Ebauches, of France are the
technical knowhow suppliers for the project. The employment potential would be for
1400 persons. The Company is expected to go on stream by middle of 1987.19

ASIA CARBON LIMITED

Asia Carbon Limited has been set up by TIDCO as joint sector in

association with Philips Carbon Blanck Limited, Calcutta to manufacture Cathode
Blocks and Carbon and Graphite Refractories with a capacity of 10,400 M.T .per
annum at an estimated cost of Rs.1,225 lakhs. The project is located at SIPCOT
Industrial Complex, Hosur.

III

MEDIUM SCALE INDUSTRIES

Most of the medium scale industries in this district are mineral based. Some
of the main industries are as follows:

ALUMINUM ELECTROLYTIC INDUSTRY

This plant was set up by the ELECOT with a manufacturing capacity of 50

million aluminum electrolytic capacitors per year at Hosur at a cost of Rs.185
lakhs.20 The plant employs over 250 persons and supplies the finished products to
the Indian Television Industry.

DHARMAPURI STEEL CASTINGS LIMITED

Formerly known as Lasco Steels Limited, this Alloy steel plant was set up in
1961 at Doddampatti in Hosur with collaboration of Lactrobe Steel, Pennisylvania.
Initially, the plant had a total outlay of Rs.5 crores. It manufactures cast steel and

                                                            
19
Electronic Corporation of Tamil Nadu Limited, A profile, p.3.
20
Ramasamy A., Madras District Gazetteer Salem, Government of India, Madras, 1967, p.249.
95
manganese steel castings21 Owing to financial difficulties, the plant stopped its
production in 1968. TIDCO assisted the unit for its recovery. The unit was
renamed in 1979 and it provides employment for about 250 persons.

CARBORUNDUM UNIVERSAL LIMITED

A private concern, with British technical collaboration set up a medium

scale unit at the SIPCOT industrial complex, Hosur it was set up in 1981 at a cost of
Rs. 78 lakhs. It is engaged in the manufacture of grinding wheels and valve
grinding compound which are made by modern machineries and computers and
marketed under the brand name ‘RED INDIAN’. The raw materials are supplied by
its plants at Cochin and Palghat and also from Maharashtra and Gujarat states. It
provides employment for about 108 persons.22

SUN FLOWER OIL MILL

Tamil Nadu Agro Industries Corporation Limited, a Government of Tamil

Nadu undertaking set up an agro based medium scale industry, for extraction of
sunflower oil, at Pochampalli in Krishnagiri taluk in September 1978 at a capital
investment of Rs.5 lakhs which has subsequently increased to Rs.70.94 lakhs in
1985. The total licenced capacity of the unit is 12,000 MTS. Sunflower seeds and
groundnut kernels are procured directly from the local growers as well as from the
TANFED and the Oil Seeds Federation. The sunflower oil and groundnut oil are
marketed by wide brand name ‘SUNOLA’ and ‘KADOLA’ respectively. By-
products are the oil cakes that attract already good market since they are very
valuable as fertilizers.23

SILTRONIC INDIA LIMITED

Grindwell Nortan Limited, Bangalore set up a plant at Hosur in 1982 at a

cost of Rs.304 lakhs. The installed capacity, on the basis of commercial utilization
of the plant and machinery is 15 tonnes which is engaged in the manufacture of
Ultraprove Silicon (poly crystalline, singlo crystal and wafers). The plant has been
set up in technical collaboration with ‘Siltec Corporation’, USA and IIT Equipment
Denmark.

                                                            
21
Pulney Andy Senji P., op.cit., p.384 & Note. The Plant Manager Carborundum Universal Ltd,
Madras, 18th March 1985.
22
Pulney Andy Senji P., op.cit., p.387.
23
Siltronics India Limited, Hosur, Note. received Finance Manager, 5th October 1982.
96
WENDT INDIA LIMITED

WENDT India Limited was established by a private company in 1985 at

Hosur with head quarters at Bombay. The total licensed capacity is 1, 38,000 and
the proposed installed capacity is 1, 01,000. Products such as Resin Bonded
Wheels, Metal Bonded Wheels, Diamond Dressings bits, shaped tools, lapping
compound, electro metallic, segmented wheels, Sews, diamond mining bits are
manufactured which are marketed under the brand name ‘WENDT’.

KNITVEL NEEDLES

Knitvell Industry was set up in 1979 with an investment of Rs. 50 lakhs at

SIPCOT Industrial complex in Hosur. This industry manufactures needles of 30
mm to 118 mm long from high carbon and high manganese steel strips and wire
imported from Japan. These needles are used for making baniyan. It is the first of
its kind in south India. The needles are produced here in 30 stages. Chandigarh
Knit Needles industry is the leading producer of knit needles and Hosur stands next
only to it. The latter produces 2, 09,000 needles every month. Around 75 people
earn their livelihood in this industry.24

NECTAR FRUIT PRODUCTS LIMITED

The Nectar Fruit Products, a unit of United Breweries Limited group of

Bangalore has been set up in Belathur near Bangalore in 1977. Its crushing capacity
was 5,000 tonnes. Fruits and vegetables being the seasonal, the function of the
factory is seasoned so and the workers here are therefore mostly casual labourers.
The raw products are procured locally. The products range from Tomato sauce to
sweet corn which are marketed under the brand name Kissan and Dipy’s. These are
exported to countries like Germany, Switzerland and Russia. About 15,000 bottles
of fruits are produced ever day.25

PREMIER MILLS LIMITED BAGALUR

Premier Mills Limited set up a medium scale plant at Bagalur in 1982. The
licensed capacity of the plant is 50,000 metres per day. It provides employment for
1,100 persons. Polyester cloth, cotton fabrics, sarees, dhothies, suiting’s and
shirting’s are manufactured by modernized automatic machines imported from

                                                            
24
Ibid., pp. 385-386.
25
Pulney Andy Senji P., op.cit., pp.388-389.
97
Switzerland and Germany. It is a composite mill where spinning, weaving and
processing are done.

IV

SMALL SCALE INDUSTRIES

Small scale industries are more prevalent in this district and provides
livelihood to a sizable number of the people. Some of the industries are as
follows.26

CALCIUM INDIA PRIVATE LIMITED

The Calcium India Private Limited set up a plant at Hosur in a built up area
of 7,000 square feet. It commenced production in October 1977 with a licensed
capacity of 90 tonnes per annum. It is a small scale unit. The total financial outlay
is Rs.25 lakhs. This industry manufactures calcium Gluconate IP, Calcium
Gluconate IP Injectibel, Sodium Gluconate IP, Magnesium Gluconate and Farrouds
Gluconate which are prescribed by doctors for children and lactating mothers to
supplement Calcium.

GINNING FACTORY

The Uttangarai Co-operative Marketing Society Limited has set up a ginning

factory at Uttangarai at a cost of Rs.7.50 lakhs which went into production on 4
March 1985. There are six double roller gins with a capacity of 30 HP each
supplied by the Sri Murugan Mill Gin Stores, Tiruppur. Presently, the factory
provides employment for 20 persons and indirect employment for about 100
persons. The raw material cotton is locally procured.27

MAESTRO ENTERPRISES

Maestro Enterprises set up a unit at Hosur at a cost for Rs.19.50 lakhs which
manufactures pollution control equipment units, systems and general fabrication of
structural parts. This factory commenced production in October 1982. It also
manufactures equipments with regard to water treatment plants, water softening
plant air pollution control, sound pollution control systems and units. The total
estimated production is 600 tonnes per annum. The main raw materials are mild

                                                            
26
Tamilarasu, 16-12-1982, p.25.
27
A Note on Uthangarai Taluk, 1980.
98
steel, stainless steel and rubber. The finished products are used by all industries and
Government organizations.

MINERALS AND MINERAL BASED INDUSTRIES

Black granites or dolerite dyke rocks are found in large quantities in

Mulaibelm, Ajjanhalli, Cobinathampatti, Madathahalli, Chintolahalli, Matladahalli,
Karakodi, Sunjalnatham, Bellarampalli, in Dharmapuri taluk, Krishnagiri taluk,
Pennagaram taluk and Harur taluk. Government of Tamil Nadu have set up a unit
(TAMIN) in the industrial estate at Krishnagiri. Another unit, Moon Rock Marble
company, a private sector unit is also located here. The granites found here find a
market in Kuppam in Andhra Pradesh which is quite near. But the granites find a
ready market internationally, more so in Japan and Germany. Vermiculite, an
hydrous silicate occurs chiefly as an alteration product of the mica group of
minerals. It is used for insulation of roofs galvanising balls in industries. This is
found in a high ground mainly about 15 acres known as ‘Taginikkal Medu’ in
Olaipatili village in Uttangarai taluk.28

TAMIL NADU MINERALS AND CHEMICALS LIMITED

The Tamil Nadu Mineral and Chemicals Limited set up a factory at

Kanjanur village for manufacture of chemical lime which finds use in paper, leather
and sugar industries as limestone is found in the district.29

HANDLOOM INDUSTRY

Next to agriculture, handloom industry occupies a predominant place in

providing employment opportunities. About 15,000 persons are engaged in its
handloom industry in Dharmapuri district. There is a dye factory for yarn rung by
the Dharmapuri Weavers Co-operative Society while the other weavers’ co-
operative societies and master weavers depend upon the dye factories in Salem and
Coimbatore districts. The Tamil Nadu Handloom Development Corporation
provides financial assistance by way of loans to the handloom, powerloom and
ancilliary industries outside the co-operative fold. There are many weavers’ Co-
operative societies and seventy five percent of the cloths produced by these societies
are procured by the Co-optex while the remaining 25 per cent is sold in open

                                                            
28
Pal Thurai Pani Vizhakka Vizha Sirappu Malar, Dharmapuri District, Government of Tamil Nadu,
1974.
29
MIDS, op.cit., p.225 & Note. Assistant Director of Hand Looms and Textiles, Salem, 19.4.1979.
99
market.30 The private weavers are mostly working under master weavers. The Tamil
Nadu government provide assistance to a maximum of Rs.25,000 per loom to the
members of Weaver’s co-operative societies for modernizing the old type of
handlooms.

SERICULTURE

Sericulture is a land based labour intensive agro industry, which has got
three phases namely mulberry cultivation, silkworm rearing and silk reeling. Of
these, silk reeling is a cottage industry. Sericulture is a land based, labour intensive
agro industry. Farming and silkworm rearing have an agriculture base and silk
reeling involving power, steam etc, make it an industry. This industry provides
employment to rural people throughout the year.31

While the Drought Prone Area Programme and Integrated Rural

Development Programme have brought sericulture within their ambits, State
Government has also set up the Intensive Sericulture Development Programme to
augment the cause which has come into effect from 1977-78. Besides, Government
has also set up cocoon markets, Grainages, Demonstration-cum-Training centers,
Reeling Training centers, Technical Service Centre and Chowkie Rearing Centers
which make sericulture industry in the district.

The following assistance have also been provided to farmers and small scale
units for strengthening their infrastructural facilities32

1) Subsidized supply of mulberry seed cuttings

2) Subsidy for purchase of rearing appliances

3) Subsidy to construct rearing shed

4) Subsidy to install reeling basins and to hair reelers

The Government Sericulture Training School established in 1979 trains

graduates so that they can be absorbed in the department to meet manpower
requirement. The Central Silk Board implements a project at Hosur for distribution
of mulberry seed cuttings and also supplies improved varieties of silkworm layings.

                                                            
30
Tamilarasu, 01-10-1985, p.19, & Note. Received the Director of Sericulture-Salem, 20-5-1986.
31
Tamilarasu, 01-03-1993, pp.24-26 & Pal Thurai Pani Vizhakka Vizha Sirappu Malar -
Dharmapuri, Government of Tamilnadu, 1974.
32
Industrials Growth in Tamil Nadu SSI A Review 1972-73, p.260 & Pal Thurai Pani Vizhakka Vizha
Sirappu Malar- Dharmapuri, 1974.
100
Apart from Hosur, Krishnagiri, Denkanikottai, Dharmapuri and Uthangarai taluk
also have become centers of sericulture.33

KHADI AND VILLAGE INDUSTRIES

Village industry means any industry which forms a normal occupation,

whether whole time or part time of any class of rural population. Khadi and village
industries play a vital role in the rural upliftment of the people: The Tamil Nadu
Khadi and village Industries Board formed in 1960 gives a fillip for the development
of those industries financially and technically. It implements various schemes and
thereby improvises the conditions of rural masses. Distribution of bee hives,
training in bamboo basket making and production of bamboo articles have been
introduced to acquaint the people towards better livelihood. Under Drought Prone
Area Programme, facilities for self-employment and a sum of Rs.26.16 lakhs has
been expended. This scheme mostly covers palm based small scale industries and
such as mat weaving from korai, date palm leaves and coir making etc. Besides,
TAHDCO scheme has been implemented in 1982-83 which covered industries like
textiles, weaving, footwear, lime and brick works.

Handicrafts are still alive as a vibrant force in all the rural areas of India and
Dharmapuri is no exception to this. The handicrafts peculiar to the area are
identified and the facilities like workshed for artisans and supply of improved tools
and equipments are extended. The Industries Department, besides, imparts training
in weaving woolen druggets at Papparapatty and runs a production center at
Krishnagiri. A unit for manufacturing glass bangles has been established at
Nedumaruthi in Krishnagiri. The handicrafts products are marketed through sales-
cum-procurement depots.34

OCCUPATIONAL STRUCTURES AND ITS TRANSFORMATION

Structural shift of workforce from primary sector to secondary and tertiary

sector is considered to be a precondition for growth and development35 The structure
and the transformation of workforce in Dharmapuri district are analysed from the
results of Population Census 1991 and 2001.

                                                            
33
Development Schemes in Dharmapuri District, Govt. of Tamil Nadu (Madras, 1976), p. 260.
34
Pulney Andy Senji P., op.cit., p.404.
35
Kumar, Dharma (ed.), The Cambridge Economic History of India, Vol.II, Cambridge University
Press, Cambridge, 1983, p.78.
101
 Workforce refers to the persons employed in economic activities such as
self-employed and salary/wage paid. This includes agricultural and non-agricultural
activities, seasonal and pernnial, regular and casual employment. A majority of the
workforce in Dharmapuri district is engaged in agricultural and its allied sectors like
horticulture, floriculture, animal husbandry, aquaculture, cultivation of vegetables
and services related to agro and allied sectors.

TABLE- 1

INDUSTRIAL CLASSIFICATION OF WORKERS IN 199136

Pennagaram
Dharmapuri

Tamil Nadu
Categories

Palacode

District
1. Cultivators 38 Harur
38 43 46 40 23

2. Agricultural Labourers 28 42 37 35 36 33

3. Industrial Workers 6 2 4 3 4 13

4. Other Workders 21 11 10 11 13 25

A. Main workers (1+2+3+4) 93 93 94 96 94 94

B. Marginal workers 7 7 6 4 6 6

Total Workers (A+B) 100 100 100 100 100 100

Workers 45 51 49 48 48 43

Non-workers 55 49 51 52 52 57

Total Population 100 100 100 100 100 100

Source: Census of India 1991

Over the last two Census (1991 and 2001), the participation of workers in
the labour market, that is in paid work, has increased from 48 percent to 51 percent
of the total population of Dharmapuri district. Still, almost half of the population
continued to be non-workers. This is indication of the level of unemployment in the
district.

                                                            
36
Census of India, 1991, District Hand Book Dharmapuri, Government of India (Madras, 1992),
p.xxii.
102
 TABLE -2

INDUSTRIAL CLASSIFICATION OF WORKERS IN 2001

Pappireddipatti
Pennagaram
Dharmapuri

Tamil Nadu
Palakkoddu
Categories

District
Harur
1. Cultivators 30.4 39.8 39.6 32.3 43.6 36.5 17

2. Agricultural Labourers 16.3 27.8 25.4 29 20.2 23.1 22

3. Industrial workers 2.4 1.4 1.5 1.4 1.6 1.7 5

4. Other Workers 35 19.7 17.6 18.5 19.9 23.2 42

A. Main workers (1+2+3+4) 84 88.9 84.2 81.1 85.3 84.6 85

B. Marginal workers 16 11.1 14.8 18.9 14.7 15.4 15

Total Workers (A+B) 100 100 100 100 100 100 100

Workers 48 52 52 53 52 51 45

Total Population 100 100 100 100 100 100 100

Source: Census of India 2001.

TABLE -3
OCCUPATIONAL STRUCTURE AND GROWTH37
1991 2001 Growth Rates
Categories
Male Female Total Male Female Total Male Female Total

Cultivators 49 28 40 38 34 37 -0.9 5 1

Agricultural Labourers 28 49 36 20 28 23 -2.0 -3 -2

Industrial Workers 5 2 4 2 2 2 -10 3.1 -5

Other Workers 18 6 13 31 12 23 6.8 9.8 7.4

Main Workers 100 84 94 91 76 86 0.6 1.5 0.9

Total Workers 57 39 48 57 44 51 1.5 2.6 1.9

Non-Workers 43 61 52 43 56 49 1.3 0.6 0.9

Population 100 100 100 100 100 100

                                                            
37
Census of India, 1991 & 2001, District Hand Book Dharmapuri, Government of India (Madras,
2002).
103
 Source: Census of India 1991 and 2001.

But the category of ‘other workers’ has recorded an increase from 13

percent in 1991 to 23 percent in 2001. This is an indication of the informalization of
the workforce in the district. It may also be noted that the share of mariginal workers
(those who can get employment for less than six months) has also more than
doubled from 6 percent to 15.2 percent. The highest marginalization of 19 percent
(2001) from 4 percent (1991) took place in Pennagaram taluk. Such fivefold
increase in marginalisation of workforce has taken place in a block that already
shelters a large number of BPL families.

Table 3. provides the structure and compound growth rate of workforce for
the Dharmapuri district. According to the population census, Dharmapuri district
had a total workforce of 5.4 lakhs accounting for 48 per cent in 1991 which rose to
6.6 lakhs accounting for 51 per cent in 2001. The district population has recorded an
annual growth rate of 1.76 percent between 1911-2001 census periods. The
workforce has grown more than this. The decadal workforce growth rate for the
district is 2 per cent in the decade of 1991-2001, whereas the state’s growth is 1.4
per cent for the above corresponding period. A similar growth variation in
workforce is found for the main and marginal workers at the district and state levels.
A negative workforce is registered in the case of agricultural labourers and
household industry workers at the district as well as the state level. Table 2 also
reports a similar growth of variation in the case of non-workforce both at the district
and the state levels.

FEMALE WORKFORCE PARTICIPATION RATE (FWPR)

In recent decades, women’s participation in paid work has increased in most

parts of the country. But the very low level of female work participation rate in
Dharmapuri could be an indication indication for the absence of long term
economic development. 38

                                                            
38
Census of India, 2001
104
 TABLE-4

FEMALE WORK PARTICIPATION RATE (FWPR)

Pappireddipatti
Pennagaram
Dharmapuri

Palakkoddu

District
Harur
i) Cultivation 28 38 36 29 42 34

ii) Agricultural Labourers 22 33 29 32 25 28

iii) Industrial Workers 3 2 2 1 2 2

iv) Others 20 10 8 8 10 12

Main workers (i to iv) 73 82 75 71 78 76

Marginal 27 18 23 29 22 24

Total Female Workers 100 100 100 100 100 100

Female Workers 39 46 45 47 48 44

Total Female Population 100 100 100 100 100 100

Source: Census of India 2001

The FWPR of Dharmapuri district was 39 percent in 1991. Across the
taluks, the FWPR was even much lower at 34 percent for the Dharmapuri Taluk
whereas the Harur taluk recorded a higher rate of 44 percent.

In 2001, the FWPR for the district has increased from 39 percent to 44
percent. In the total workforce, women constitute 39 percent in Dharmapuri Block.
Pennagaram, Pappiredipatti and Harur taluk have higher female work participation
of 42 percent and Dharmapuri has recorded the lowest share of work participating
women (39 percent). Agriculture is the only sector where women participation is
half of the men. The ratio of female main workers is rather low in comparison with
males in other sectors. The disturbing trend is seen in the composition of the
workforce. The share of marginal workers is 24 and the share of main workers is 76.
The marginal workers share among the women is higher than that of the men.

105
SOCIAL COMPOSITION OF THE WORKFORCE

Half of SC and ST population are workers and the other half are non-
workers. Almost one fifth of the total workforce in Dharmapuri district are socially
weaker sections. Out of the total workforce of 6.6 lakh, 19 per cent (2.4 lakhs)
belong to SC & ST communities as per the Census 2001.

TABLE- 5

OCCUPATIONAL STRUCTURE OF SC/ST WORKERS (2001) 39

Pappireddipatti

Pennagaram
Dharmapuri
Community
Categories

Palacode

District
Harur
SC/ST 2.2 9.5 1.6 9.2 3.6 4.7
Cultivators Non-SC/ST 34 35.4 45.5 30.6 47.5 38.5
Total 36.2 44.8 47.1 39.8 51.1 43.1
SC/ST 3.4 18.3 5 18.9 5.2 9.2
Agricultural labourers Non-SC/ST 16 13 25.2 16.8 18.4 18.1
Total 19.4 31.3 30.2 35.7 23.6 27.3
SC/ST 0.2 0.4 0.2 0.3 0.2 0.2
Industrial workers Non-SC/ST 2.6 1.3 1.7 1.5 1.6 1.8
Total 2.6 1.6 1.8 1.7 1.8 2.1
SC/ST 3.7 6.1 1.9 5.1 2.6 3
Others Non-SC/ST 37.9 16.1 19.1 17.6 20.8 24.4
Total 41.6 22.2 20.9 22.8 23.4 27.5
SC/ST 9.5 34.3 8.6 33.5 11.7 17.9
Main Non-SC/ST 90.5 65.7 91.4 66.5 88.3 82.1
Total 84 88.9 84.2 81.1 85.3 84.6
SC/ST 1.8 4.4 2.1 8.9 2.2 3.6
Marginal Non-SC/ST 14.1 6.8 12.7 10 12.5 11.6
Total 16 11.1 14.8 18.9 14.7 15.2
SC/ST 9.8 34.8 9.3 36.1 12.2 18.7
Workers Non-SC/ST 90.2 65.2 90.7 63.9 87.8 81.3
Total 48.1 52.3 51.6 52.7 52.3 51
SC/ST 5.9 16.5 4.8 16.7 6.3 9.2
Non-workers Non-SC/ST 46 31.1 43.6 30.5 41.4 39.8
Total 51.9 47.7 48.4 47.3 47.7 49
Source: Census of India, 2001.

                                                            
39
HRD –Report 2011, p.72.
106
 Among the total SC/ST workers, 85 percent are main workers and the rest
are marginal workers. While 70 percent of the main workers of SC and ST
population are dependent on agricultural sector and its allied activities for their
livelihood, a mere 2 percent of the workforce is in Harur ad Pappireddipatti taluks.

Further, it may be noted that the district as a whole has 15 percent of the
workforce as marginal workers. But among the SC/STs, the ratio of marginal
workers is relatively higher at 19 percent of the total workforce. Across the taluks,
Harur and Pappireddipatti have even higher rate of 35/36 percent of marginal
workers.

Dharmapuri district is mostly an agrarian society and the share of industries

is just around one-fifth of the GDDP.

The numbers of units have increased from 2903 to 3853 recording an

increase of 33 percent between 2001 and 2007 but this has not increased the
employment opportunities; on the other hand it reduced it by one percent. Thus, the
industrialisation is relatively less and that too it could not provide adequate
employment to the people.

TABLE - 6
INDUSTRIAL UNITS AND EMPLOYMENT IN DHARMAPURI DISTRICT40

Block Number of Working Units Number of Employment

Growth Growth
2001 2007 2001 2007
Rate Rate

Nos. Percent Nos. Percent Percent Nos. Percent

Dharmapuri 1113 38 1216 32 9 4452 34 3130 24 -30

Nallampalli 374 13 429 11 15 1870 14 1716 13 -8

Pennagaram 276 10 392 10 43 828 6 1352 10 63

Morappur 172 6 282 7 64 1032 8 1128 9 9

Harur 329 11 515 13 57 1974 15 1545 12 -22

Kareimangalam 71 2 199 5 180 355 3 1194 9 236

Pappireddipatti 279 10 345 9 24 1116 9 1035 8 -7

Palacode 289 10 475 12 64 1445 11 1900 15 31

District Total 2903 100 3853 100 33 13072 100 13000 100 -1

Source: Economic Census, 2001 & 2007, Field Survey 2010.

                                                            
40
Economic Census 2001 & 2007 & HRD-Report Dharmapuri 2011, p.76.
107
 In the MSME (Micro Small Medium Entrepreneur) Policy, 2009, a package
of Incentives and concessions are provided for the Development of Industrial
activities and to create employment opportunities.

TABLE- 7
DETAILS OF SMALL SCALE INDUSTRIES IN DHARMAPURI DISTRICT 41

No. Classification Details of Classification Units (Nos)

1. Food Floor Milling, Vermicilli etc. 1838

2. Chemical Stone-jelly, Agarbathi etc. 218

3. Plastic & Rubber P.V.C. pipes, Rubber goods etc. 93

4. Electrical & Electronics Lamps, Starters, T.T. Antena etc. 696

5. Forest based Wood Furnitures etc. 477

6. Engineering Engineering 1026

7. Textile Powerloom, Silk reeling, Tailoring units, etc. 2216

8. Others Beauty parlor, Paper, Printing, non-metal 1185

Source: Dharmapuri District Administration 2010.

Most of the concessions are provided only for entrepreneurs who start
industry in backward blocks. Dharmapuri district has eight development blocks. Out
of the eight blocks, except the head quarters block of Dharmapuri all other seven
blocks have been classified as industrially backward.

An entrepreneur who wants to start small and medium industry in

Dharmapuri block which is most conducive for starting is not eligible to avail
incentives offered by the Tamilnadu Government as per the MSME Policy, 2008.

If Dharmapuri block, is declared as backward block, many entrepreneurs

will come forward to start Small and Medium Industries in and around Dharmapuri
block, which will lead to starting of new Industries and generation of employment
opportunities for people of Dharmapuri.42

Across the blocks, Dharmapuri block has the highest share (38 percent) of
the units as well as the employment opportunities (34 percent) followed by Harur

                                                            
41
Dharmapuri District Administration Report, Government of Tamil Nadu, 2008.
42
Dharmapuri District Human Development Reports, p.70.
108
during 2001. But in 2007, it witnessed a sharp fall in the proportion of units as well
as share of employment opportunities.

Between the two censuses, the number of employment opportunities declined

to the extent of 30 percent in Dharmapuri block and 22 percent in Harur Block.
Karimangalam and Morappur had the least share of 2 percent and 6 percent
respectively, whereas the other blocks had a share of around 10 percent of the units.
In spite of such gloomy environment, Palacode, Pennagaram and Karimangalam
appear to be emerging as industrial centers. All these three blocks have relatively
lesser share but their growth in terms of both the units as well as employment shows
promising potential for policy intervention.

109