Economy of Coimbatore

Economy of Coimbatore is heavily influenced by information technology, engineering and textiles. Coimbatore is called the Manchester of South India due to its extensive textile industry, fed by the surrounding cotton fields.[1][2] The city has four special economic zones [SEZ], ELCOT SEZ, CHIL SEZ, SPAN Venture SEZ, Aspen SEZ and at least five more SEZs are in the pipeline.[3][4] In 2010, Coimbatore ranked 15th in the list of most competitive (by business environment) Indian cities.[5]

CODISSIA Trade Centre, Coimbatore

Coimbatore has trade associations like CODISSIA, COINDIA and COJEWEL representing industries in the city. Coimbatore also has a 160,000 square feet (15,000 m2) trade fair ground, built in 1999. It was named COINTEC due to its hosting of INTEC (Small Industries Exhibition). The Trade Fair complex, one of the country's largest, was built in six months, and is owned by CODISSIA (Coimbatore District Small Industries Association). It is also the country's largest pillar-free hall, according to the Limca Book of Records.[6]

Textiles
Lakshmi Mills, established in 1910 in Avinashi Road

Coimbatore houses a large number of small, medium and large textile mills, along with a number of textile research institutes. The city also houses two of the Centers Of Excellences (COE) for technical textiles proposed by Government of India, namely Meditech, a medical textile research centre based at SITRA, and InduTech based in PSG College of Technology.[7] There are several large textile mills in the city such as Lakshmi Mills, Shiva Texyarn Limited, Bannari Amman Spinning Mill, SKS spinning mills, Kadri Mills, Varadharaja Textile Mill, KPR Mills, Premier Mills, world-famous micro cotton towel producers - Sharadha Terry Products etc.

A textile mill in Avinashi Road)

National Textile Corporation is a company owned by the Indian government has 5 Mill units in Coimbatore.

  • Coimbatore Murugan Mills
  • Cambodia Mills
  • Coimbatore Spinning and Weaving Mill
  • Pankaja Mills
  • Sri Rangavilas Mills

The neighbouring town of Tirupur is home to some of Asia's largest garment manufacturing companies, exporting hosiery clothes worth more than ₹ 50,000 million.

Manufacturing

Coimbatore has a large and a diversified manufacturing sector facilitated by the presence of Sakthi Group, Bannari Amman Group, Lakshmi Machine Works, Larsen & Toubro, Baker Hughes, Alstom, ZF Friedrichshafen, Mahle GmbH, Konecranes, Pricol, V-Guard Industries, Suzlon, ARGO-HYTOS, Titan, Flowserve, KSB, Makino, Messer, Gilbarco Veeder-Root, Bradken, Rieter, VWR International, Hella, Shanthi Gears, ITC Limited, ACC Cements, TTK Prestige, Kirloskar Group, Hirotec, ELGI Equipments, Roots Industries, Salzer Electronics, Mak Controls and systems, Texmo Industries, SE Electricals and others. Larsen & Toubro has huge manufacturing facility spread over 300 acre own campus. And there are more than 25,000 small, medium, large sale industries in the city. Coimbatore also has Engineering SEZ in the outskirts of city "Aspen SEZ" spread over 376 acres. CODISSIA Industrial Park is being set up at Moperipalayam nearly 260 acres and at Kallapalayam nearly 150 acres. The city already has industrial estates owned by SIDCO at Kurichi, SIDCO at Malumichampatti, Electrical & Electronics Industrial Estate at Kalapatti and Sree Suba Ganesh Industrial estate near Kovilpalayam. The large number of engineering colleges in the region producing about 50,000 engineers.[8] Indian Railways has "Southern Railway Signal & Telecom Workshop" in Podanur which is a manufacturing unit for Electrical & Communication division of Indian Railways. "L&T - MBDA Missile Systems" is a joint venture setting up a new unit in Aspen SEZ, Coimbatore to manufacture defense products.

Lakshmi Machine Works is India's largest textile machinery and CNC Machine Tool manufacturers based out of Coimbatore.

Engineering procurement and tooling

More than 50,000 engineering units function in and around Coimbatore city. What began as a focused centre for the manufacture of textile motors in the early 1900s has today become a multidisciplinary entity that is capable of catering to voluminous demands in the international market. Tooling Divisions were incepted primarily as captive units for manufacturing houses and have become a major engineering activity in the city today. Today several such companies offer precision tooling services to global industries. The light engineering industry in the Coimbatore region also specializes in offering customized engineering solutions for diverse requirements.

Automotive engineering and components
CODISSIA Trade Fair Complex, Coimbatore 2014

Coimbatore has emerged as one of the most trusted outsourcing destinations for the auto component industry. Several factors have contributed to this growth, including ready availability of resources and skilled technical talent.[9] Technical Partnerships and strategic alliances with global manufacturers have given the Coimbatore auto component industry more mileage in the international market. Today, auto majors with a growing presence in India source both major components and sub-assemblies from the city. Several international automotive manufacturers source components ranging from exhaust systems to braking systems, seating, electronic and electrical components, mechanical engine parts, body components and suspensions and radiators among others. Many auto component manufacturing companies are OE partners to multinational brands. Textool was one such company that once designed and supplied Sten Guns to the Indian Government after independence. They also developed the first in-house-designed car in the 1960s, which never saw the light of day due to the license raj. They made several prototypes until the 1990s. They successfully manufactured India's first indigenously developed diesel engines in 1972 for cars and their own CNC lathes in 1982. Today their spin-off company, Jayem Automotives Pvt Ltd, offers R & D services to Tata Motors, Renault, Volvo, Eicher, Daimler, TVS, Hero Motors and Robert Bosch GmbH. Maruti Suzuki and Tata Motors source up to 30% of their automotive components from Coimbatore. Some of the countries leading auto component makers based from in Coimbatore include Pricol, Hirotec, Craftsman Automation and Roots Industry. Apart from this Robert Bosch GmbH has a large technical centre in the city.

Wet grinders and Home appliances

Coimbatore has more than 700 wet grinder manufacturers with a monthly output, As of 2015, of 75,000 units per every 100,000 produced in India.[10][11] The term "Coimbatore Wet Grinder" was given a Geographical indication for wet grinders manufactured in Coimbatore in 2006.[12] Coimbatore is also home to a common facility for the manufacturers of wet grinders.[13]

Motor and pumps

Coimbatore is also called as the Pump City of Asia and has played a dominant role in the agricultural sector since independence and holds a major portion of the total Indian market share. The first motor to be manufactured in India came from a small engineering shop in Coimbatore. Today, the pump and motor manufacturing sector is among the largest engineering activities in the city. The pump manufacturing industry in Coimbatore. Over the years, the city has become as well known for its pumps as it has for its textiles. Many brands in the international market are Coimbatore based companies and the quality and technical superiority of the products has helped the sector cater to both domestic and global demands. Apart from a leading presence in the water pump market, the city's manufacturing houses also specialize in the manufacture of industrial pumps. The motor and pump industry supplies over 40% of India's requirements.[14]

Jewellery and gems

Coimbatore is one of the major gold jewellery manufacturing hubs in India, renowned for making cast jewellery and machine made jewellery.[15][16] The city is home to about 3000 jewellery manufacturing companies and to over 40,000 goldsmiths.[17][18] The jewellery manufacturers have an active association called Coimbatore Jewellery Manufacturers' Association, and have also jointly established Coimbatore Gem and Jewellery Industries Private Limited (Cojewel), which is a common facility with niche goldsmith machinery to be used by the members of the association.

Several jewellery retail chains like Kirtilal's are based in Coimbatore or have their manufacturing base in Coimbatore.[19] Owing to the presence of a large number of jewellery manufacturers and the strong engineering base, the city is home to a number of companies manufacturing jewellery making machinery.[20] The city is also a major diamond cutting centre in South India. For example, Kirtilal's Jewellers alone have 5 diamond cutting and polishing centres in Coimbatore.[21][22]

Information Technology and BPO
IT SEZ at Saravanampatti

The city is the second largest software producer in Tamil Nadu, next only to Chennai. IT and BPO industry in the city has grown greatly with the launch of TIDEL Park Coimbatore & Wipro Software Development Centre in ELCOT SEZ, IndiaLand TechPark in CHIL SEZ, KCT TechPark, Hanudev Infopark, Rathinam Technopark, KGISL Campus, Span Venture SEZ, Elysium Central and other planned IT parks in and around the city. It is ranked at[23] 17th among the global outsourcing cities. Companies like Amazon, Altran, Bosch, Cognizant, Ford, Tata Consultancy Services, Wipro, HCL Technologies, Ericsson, Cameron International, NTT DATA, Harman, ThoughtWorks, McWane, State Street Corporation, Tessolve, IQVIA, Deloitte, Owler, Access Healthcare, UST Global, Impiger Technologies Pvt. Ltd, Pactron India Pvt Ltd and Nous Infosystems having a presence in the city. Cognizant has second largest headcount in the country with more than 15000+ employees in the city. And Bosch has the second largest development center in Coimbatore outside Germany with 5500+ employees in the city. Software export stood more than ₹15,000 crores for the financial year 2018–2019, which is second largest in the state after Chennai.[24]

With abundance of engineering colleges and availability of skilled resources Coimbatore is becoming a go-to destination for the technology startups recently, companies like RFPIO, headquartered in Portland, USA is building enterprise scale products with engineering team operating from Coimbatore.

TICEL Bio-Park III, a Bio-Technology Park is being constructed in 10 acres of land at Somayampalayam, Coimbatore which is set to open in Jan-2020

Due to huge demand from IT Companies for space at Coimbatore, TIDEL Park Coimbatore-Phase-II is planned to be built within ELCOT SEZ in additional 6 acres of land with 5 Lakh sq.feet space at 250 crores.

SEZ

  • Aspen SEZ -Manufacturing
  • CHIL SEZ - IT/ITS & Hardware
  • ELCOT SEZ - IT/ITS
  • SPAN SEZ - IT/ITS

IT Parks

Industrial Parks

  • Codissia Industrial Park-I -Kallapalayam
  • Codissia Industrial Park-II -Mopperipalayam
  • SIDCO Industrial. Estate-Kuruchi
  • SIDCO Industrial. Estate-Malumichampatti
  • Sree Suba Ganesh Industrial Estate-Kuppepalayam
  • Electronics Industrial Estate- Civil Aerodrome Post
  • Annamalai Industrial Park, Kalapatti
  • Sulur Industrial Estate-Kannampalayam
  • Nethaji Industrial Estate-Devampalayam -Proposed
  • Defense & Aero Park- Sulur-Planned
  • ADD ELCINA Electronics Park, Annur-Proposed

Logistics Parks

  • IndoSpace Skill Logistics Park - Coimbatore
  • Safexpress Logistics Park
  • Marudhamalai Andavar Industrial & Logistics Park, Coimbatore by TVS Industrial & Logistics Park Pvt Ltd- To Open in 2020
  • Adithya Warehouse - To Open in 2020

Aerospace & Defense

Coimbatore is being selected for Defense Corridor of Tamil Nadu and State Government is planned to set up Defense & Aero Park at Sulur around 500 acres. And already major MNC's have huge manufacturing plant in the city for Aerospace & Defense products.

  • Larsen & Toubro @ Malumichampatti
  • L&T MBDA Missile Systems @ Aspen SEZ, Karumathampatti
  • Circor International @ Thennampalayam
  • Premier Astra @Kulathur Road, Venkitapuram

Railways

Indian Railways has Manufacturing Plant in the city for Signal & Telecommunication and it is one of the important Telecommunication manufacturing facility for Indian Railways.

  • Southern Railway Signal & Telecom Workshop in Podanur

A French multinational company operating worldwide in rail transport markets having a manufacturing facility in the city.

Paper
  • ITC Limited has a manufacturing facility in Coimbatore for Paperboards & Speciality Paper division.

Poultry and food products

Coimbatore has a large number of poultry farms and is one of the major producers of chicken eggs and processed meat amounting to nearly 95% of the chicken meat exports from the country.[25] Major companies include Suguna Foods and Shanthi Feeds.

Coimbatore has some of the oldest flour mills in India. The large-scale flour mills, which cater to all the southern states, have a combined grinding capacity of more than 50,000 MT per month. The city houses many famous high-capacity flour mills like India Roller Flour Mills (now closed) and Coimbatore Roller Flour Mills.[26]

Retail and e-commerce
Brookefields Mall

There are a number of retail outlets, supermarkets and shopping malls in Coimbatore. The city has major shopping malls include Brookefields Mall, Fun Republic Mall and Prozone Mall. Popular cinemas include INOX, The Cinema by SPI Cinemas, Cinépolis, Miraj Cinemas, Maharaja Multiplex, SDC Cinemas and KG Cinemas. Coimbatore is already the largest non-metro city for e-commerce in South India, due to growing online shopping, e-ticketing and e-billing adaptation in the city. [27]

Malls

Branded Cinemas

Hospitality

In the recent years, the city has seen growth in the hospitality industry.

5-Star Hotels

4-Star Hotels

3-Star Hotels

    • Aloft
    • IBIS
    • Zibe Coimbatore by GRT Hotels
    • The Orbis
    • Hotel Le Grand
    • Clarion hotel
    • CAG Pride
    • Heritage Inn
    • Jenney Residency
    • Alankar Grande
    • Rathna Residency
    • Hotel City Tower
    • Holiday Residency
    • Aarvee Hotels

See also

References
  1. "SME sector: Opportunities, challenges in Coimbatore". CNBC-TV18. 24 February 2011. Retrieved 9 May 2011.
  2. "Governor congratulates "Manchester of South India"". The Indian Express. 27 June 1936. Retrieved 9 May 2011.
  3. "Bosch picks up 1-lakh-sqft space in Kovai". Times Of India. 16 February 2011. Retrieved 30 August 2011.
  4. "Coimbatore Administration - District Admin". Coimbatore.tn.nic.in. Archived from the original on 5 September 2011. Retrieved 30 August 2011.
  5. "India - Most Competitive Cities". .hindustantimes.de. Archived from the original on 14 January 2011. Retrieved 8 May 2011.
  6. First pillar free trade complex
  7. "China to face power crisis this winter". Smetimes.tradeindia.com. 30 September 2011. Retrieved 1 December 2016.
  8. "Coimbatore: IT sector on the fast track : NATION: India Today". Indiatoday.intoday.in. 22 April 2011. Retrieved 30 August 2011.
  9. "Archived copy". Archived from the original on 26 April 2013. Retrieved 22 April 2013.CS1 maint: archived copy as title (link)
  10. "Poll code set to hit wet grinders business". Live Mint. 6 August 2015.
  11. "thehindubusinessline.com". Business Line. 24 March 2005. Retrieved 20 September 2009.
  12. "Coimbatore wet grinder gets GI certification". The Hindu. Chennai, India. 28 March 2006. Retrieved 20 September 2009.
  13. "hindu.com". The Hindu. Chennai, India. 5 August 2007. Retrieved 20 September 2009.
  14. a=v&q=cache:Hsku1GrxHDEJ:www.cityscapeintelligence.com/document/1925+coimbatore+an+emerging+real+estate+destination&hl=en&gl=uk&pid=bl&srcid=ADGEEShlHwWDoCOlhIgiWKtdFHnnwzuQG69MPzNyXy-aYMz4xTU4CcU60nzPqEgM1knTRPEDLb53JlBmOJRWWNIV87AhBLYGlUnyBs0AeaJDuJFj2uMfVAVE7ITwgyCLwJKp8TaYDvzT&sig=AHIEtbRosnCbrvyA5B_OpBWHPwQJb8CLLQ "PCoimbatore emerging destination" Check |url= value (help). Retrieved 30 August 2011.
  15. "India's Gems and Jewellery Market is Glittering - Mining Investments". Resource Investor. Archived from the original on 26 September 2011. Retrieved 30 August 2011.
  16. "Archived copy" (PDF). Archived from the original (PDF) on 25 March 2012. Retrieved 28 June 2015.CS1 maint: archived copy as title (link)
  17. "Tamil Nadu / Coimbatore News : Common facilities for jewellery cluster". The Hindu. Chennai, India. 17 August 2010. Retrieved 30 August 2011.
  18. Palaniappan, V. S. (16 August 2010). "Cities / Coimbatore : ID card mooted for migrant workers in jewellery units". The Hindu. Chennai, India. Retrieved 30 August 2011.
  19. "Business Line : Today's Paper / MARKETING : Kirtilal plans more jewellery stores in N. India". The Hindu Business Line. 8 September 2007. Retrieved 30 August 2011.
  20. "Jewellery Making Machinery Manufacturers in Coimbatore". Grotal.com. Retrieved 30 August 2011.
  21. "Kirtilal on an expansion spree - Apparel - news - Fashion News India, jobs, network, apparel, business". Fashionunited.in. 8 July 2011. Archived from the original on 26 March 2012. Retrieved 30 August 2011.
  22. "India's gold & diamond exports fall by 20% | www.commodityonline.com | 3". www.commodityonline.com. 15 March 2009. Retrieved 30 August 2011.
  23. "Indian cities among global outsourcing cities - retrieved on 16 April 2009". Economictimes.indiatimes.com. Retrieved 23 September 2009.
  25. "Tamil Nadu Poultry Industry Seeks Export Concessions". Retrieved 28 March 2015.
  26. "Flour Mills in Coimbatore". Grotal.com. Retrieved 23 September 2011.
  27. "Tier II And III Cities Driving E-Commerce In India". Siliconindia.com. 15 December 2011. Retrieved 1 December 2016.
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.