Manufacturing Industries
Ramjee Nagarajan
NH Goel World School, Raipur
Manufacturing Industries
A place where primary goods[raw materials are converted into finished products
using machines are called Manufacturing Industries.
• From Raw Materials • From Processed Goods
• Cloth from cotton • Synthetic fibre (Polyester) to
• Sugar from Fabrics
sugarcane • From Cotton yarns to cloth
• Paper from wood
• Iron from iron ore
• Aluminium from
bauxite
Primary activities Secondary activities Tertiary activities Quaternary activities
Red-collar Workers Blue Collar Workers
White Collar Jobs
Are directly dependent Add value to resources by Includes both production & Specialized tertiairy
on environment and utilise transforming raw materials exchange. Involves activities in the ‘Knowledge
the earth’s resources such into valuable products. the ‘provision’ of services Sector’. Highly demands for
as land, water, vegetation, Concerned with that are ‘consumed. & consumes information
& minerals manufacturing, processing based services:
Involves trade, transport
& construction
Eg: Hunting, pastoral and communication Mutual fund managers,
infrastructure industries
activities, fishing, forestry, facilities specialised doctors,
agriculture, & mining brokerage firms Often are
outsourced & not tied to
Gold Collar’ Professions resources, or affected
Quinary Activities are services that focus on creative skills, re- by the environment, or
arrangement and interpretation of new and existing ideas; necessarily localised
data interpretation. These are highly paid senior business by market.
executives, research scientists, financial and legal consultants, etc.
Importance Of Manufacturing
Manufacturing sector is considered the backbone of
development in general and economic
development :
Helps modernise primary activities…How?
Backbone for economy
Reduce the dependence on primary sector by
providing them jobs in sec & tertiary sectors
Helps eradicate unemployment and poverty
Export of goods brings in foreign exchange
Transforming raw materials into furnished goods of
higher value makes the country prosperous
Manufacturing Industries Over the Years
Industrial revolution in Europe led
to the development of modern
factories all over the world.
Smelting of iron was known to the
Indians for several centuries
The iron pillar near Qutub Minar at
Delhi is rust free
Contribution of Manufacturing Sector to
has been set up with this objective
National Economy
Last two decades, the share has stagnated at 17 % of
GDP – out of a total of 27 % for the industry
This includes 10 % for mining, quarrying, electricity and
gas
Much lower than some East Asian economies, which is
25 to 35 % NMCC & “Make in India” initiative
Growth rate in manufacturing over the last decade has 1. New Processes: ‘Ease of doin
been around 7 % per annum business’
2. New Infrastructure: Bringing in
Desired growth rate over the next decade is 12 % modern infrastructure
3. New Sectors: Identified 25 Sectors
Since 2003, it is growing at the rate of 9 to 10 %
4. New Mindset: Government
Appropriate policy interventions and renewed efforts to interacts and partners with
improve productivity, economists predict that the target industries in economic
development as a facilitator and
can be reached by the next decade not regulator
Industrial Location
Industrial locations are influenced by Few industries tend to come
Availability of raw material
together in urban centres
Cheap labour
Capital
known as agglomeration
Power and economies
Market In the pre-Independence
Rarely all factors would be available at one place. period manufacturing units
were located in places of
Consequently, locate at place where most factors are
either available or can be arranged at lower cost overseas trade such as Mumbai,
Kolkata, Chennai, etc…. Why?
Following industries, urbanisation follows
Some industries are located in cities
Consequently, these emerged
as pockets of industrially
Industrialisation and urbanisation go hand in hand
developed urban centres
Cities provide markets and services such as banking, surrounded by a huge
insurance, transport, labour, consultants and financial agricultural rural hinterland (?)
advice, etc.
Industrial Location
Thekey to decision of
the factory location is
the least cost.
Government policies
and specialised labour
also influence the
location of industry
Tata Motors Bhilai Steel Plant Integral Coach Factory
Amul Factory IOC Refinery Adani Oil
Classification of Industries
Classifying the industries based on a
criterion would help is understand their
manufacturing better
Industries are classified on various
parameters
Adani Oil Amul Factory
On the basis of source of raw materials
used:
Agro Based: cotton, woollen, jute, silk
textile, rubber and sugar, tea, coffee,
edible oil
Mineral Based: iron and steel, cement,
aluminium, machine tools, Bhilai Steel Plant IOC Refinery
petrochemicals
On the basis of their role & Capital
Basic or key industries Consumer industries
Supply their products or raw materials to Produce goods for direct use by
manufacture other goods consumers – sugar, toothpaste, paper,
sewing machines, fans etc.
e.g. iron and steel and copper smelting,
aluminium smelting.
Small Scale Industry Large Scale Industry
Defined with reference to the maximum Investment is more than one crore
investment allowed on the assets of a unit. on any industry
Limit has changed over a time
At present the max investment allowed is
rupees one crore
On the basis of ownership
Public Sector Private Sector Industries
Owned and operated by Owned and operated by
government agencies – BHEL, SAIL, individuals or a group of
etc., individuals
Eg; TISCO, Bajaj Auto Ltd., Dabur
Industries.
Joint sector industries Cooperative sector industries
which are jointly run by the state and Owned and operated by the producers or
individuals or a group of individuals. suppliers of raw materials, workers or both.
Oil India Ltd. (OIL) is jointly owned by public Pool in the resources and share the profits
and private sector. or losses proportionately
Amul
Sugar industry in Maharashtra
The coir industry in Kerala.
Based on the bulk & weight of raw
material and finished goods
Heavy industries Light industries
such as iron and steel Use light raw materials and
produce light goods
electrical industries.
Agro Based Industries
Cotton, jute, silk, woollen textiles,
sugar and edible oil, etc. industry are
based on agricultural raw materials.
Adani Oil
Textile Industry
Occupies a significant position in the Indian economy
Contributes significantly to industrial production (14 %)
Employment generation (35 million persons directly – the second largest after
agriculture)
Foreign exchange earnings (about 24.6 %).
Contributes 4 % towards GDP
Only industry in the country, which is self-reliant and complete in the value
chain i.e., from raw material to the highest value added products
Cotton Textiles
Ancient India, textiles were produced by Availability of raw cotton, market,
spinning & weaving using hand transport including export facilities,
After industrialization in 18th century, labour, moist climate, etc. contributed
power-looms came into use towards its localisation.
Closely linked with agriculture & provides
Handlooms could not compete with the
mills-made cloth from England a living to farmers, boll pluckers and
workers engaged in ginning, spinning,
Today, over 1600 cotton and human weaving, dyeing, designing, packaging,
made fibre textile mills in the country. tailoring and sewing.
80 % are in the private sector and the rest Creates, demands, & supports many
in the public and cooperative sectors other industries
There are several thousand small
factories with four to ten looms
Earlier the cotton industry was
concentrated in the cotton growing belt
of Maharashtra & Gujarat
Looms, Mills and Weaving
Spinning is centralised in Maharashtra, Gujarat & TN
Weaving is decentralised to provide scope for
incorporating traditional skills & designs of weaving in
cotton, silk, zari, embroidery, etc.
India has world class production in spinning
However weaving supplies low quality of fabric as it cannot
use much of the high quality yarn produced in the country
Weaving is done by handloom, power loom & in mills
Handspun khadi provides large scale employment to
weavers in their homes as a cottage industry
Why is it important for our country to keep the mill sector
loomage lower than power loom and handloom?
India exports yarn to Japan. U.S.A., U.K., Russia, France,
East European countries, Nepal, Singapore, Sri Lanka,
and African countries
Cotton Mills
India has the second largest installed capacity of Why is it important for us to improve our
spindles in the world, next to China, at around 34 million weaving sector instead of exporting yarn
(2003-04) in large quantities?
India has a large share in the world trade of cotton Unprocessed product : lower value
yarn—one fourth of the total trade Post weaving sell fabrics for higher value
But trade in garments is only 4 % world’s total Improved weaving helps improve
indigenous industries, which employs more
Our spinning mills are competitive at the global level &
people and generate higher profit.
capable of using all the fibres we produce
We have made significant increase in the
The weaving, knitting and processing units cannot use
production of good quality long staple
much of the high quality yarn that is produced in the
cotton (9232 lakh bales in 2004-05) the
country
need to import is still felt
Some large and modern factories are there, but most
Power supply is erratic and machinery
of the production is in fragmented small units, which
needs to be upgraded in the weaving
cater to the local market
and processing sectors in particular
This mismatch is a drawback
Other problems are the low output of
Most spinners export cotton yarn and garment labour and stiff competition with the
manufactures import fabric synthetic fibre industry
Hibiscus sabdariffa Var.
Jute Textiles
altissima and H.
Corchorus Capsularis C. Olitorius
cannabinus
Largest producer of jute 2nd largest exporter Jute industry supports
2.61 lakh workers
Over 70 jute mills located along the Hugli 40 lakhs farmers
river, Many others, associated indirectly
Ist mill was set up in 1859 at Rishra,(Nr. Mesta
Challenges Ecountered
Kolkata)
Stiff competition from synthetic substitutes
After Partition in 1947, Mills remained in India Competition from Bangladesh, Brazil, Philippines,
but 3/4th of the jute growing area went to Egypt and Thailand
Bangladesh Internal demand has increases
Hugli basin was chosen because : Government policy to make jute packaging
proximity of the jute growing areas mandatory
Inexpensive water transport For stimulating further demand, products need to
Good network of railways, roadways & be diversified.
waterways move raw material to the mills 2005, National Jute Policy formed to increase
Abundant water for processing raw jute productivity, quality, ensure good prices to farmers
Cheap labour and enhance the yield
Kolkata City provides banking, insurance Markets are U.S.A., Canada, Russia, United Arab
and port facilities for export of jute goods Republic, U.K. and Australia.
Environment friendly, biodegradable material
Sugar Industry
Second in sugar production; Ist gur and khandsari
Raw material used in this industry is bulky, and in
transport its sucrose content reduces
460 sugar mills in the country spread over UP, Bihar,
Maharashtra, Karnataka, TN, AP and Gujarat along
with Punjab, Haryana and Madhya Pradesh.
60% mills are in Uttar Pradesh and Bihar
Seasonal in nature, suited for the cooperative sector
The mills have shifted to Maharashtra & Gujarat:
the sugarcane grown in has a higher sugar content
Cooler climate ensures a longer crushing season;
modern machinery and profitable use of byproducts
baggage and molasses
successful cooperatives
Challenges: the seasonal nature, transport delay;
old outdated machinery; efficient cooperatives
Iron and Steel Industry
Industries that use minerals and metals as raw materials are called mineral based industries
Basic industry—heavy, medium and light—depend on it
Steel needed for manufacture of engineering goods,
construction material, defence, medical, telephonic,
scientific equipment and a variety of consumer goods
Production of steel is an index of a country’s development
Heavy industry as raw materials & finished goods are heavy
Iron ore, coke& lime stone are required in the ratio of 4:2:1
Manganese required to harden the steel
India producing 32.8 million tons, ranks 9th in crude steel
Largest producer of sponge iron
Despite a large quantity of production, per capita use is
only 32 kg
Processes of Manufacture of Steel
Low per capita consumption of steel
10 primary integrated and many mini steel plants in India
Mini plants are smaller with electric furnaces, use steel
scrap and sponge iron, re-rollers that use steel ingots also
Produce mild and alloy steel of given specifications
Large integrated steel plant handles– from raw material
to steel making, rolling and shaping
Public sector industries market products through SAIL
China is the largest producer & also consumer
2004 India was the largest exporter--2.25 % of the global
steel trade.
Chotanagpur plateau region has the highest number of
iron and steel industries Import good quality steel
Production enough to meet Indian needs
Why? What regional advantages…? L&FDI have given a boost to the industry
Not performing to our full potential: Poor infrastructure Private entrepreneurs. Need R& N to
produce steel more comparatively.
High costs & limited availability of coke; Unskilled labour
Aluminium Smelting
2nd most important metallurgical industry in India
• Light • Mallable Bauxite
• Resistant to corrosion • Yields strong alloy
• Good conductor of heat
Used to manufacture aircraft, utensils and wires
Popular as a substitute of steel, Cu, Zn and Pb
8 aluminium smelting plants Orissa (Nalco and
Balco), West Bengal, Kerala, Uttar Pradesh, Renurkoot
Chattisgarh, Maharashtra and Tamil Nadu Belur
Korba
In 2004, produced over 600 million tons
Angul
Bauxite, the raw material used in the smelters is a
Taloja Hirakud
very bulky, dark reddish coloured rock
The flow chart given below shows the process of
manufacturing aluminium.
Alupuram
Regular supply of electricity & raw material at Metur
minimum cost are the two prime factors for
location of the industry
A factory produces aluminium saucepans with plastic handles. It
obtains aluminium from a smelter and a plastic component from
another factory. All the manufactured saucepans are sent to a
warehouse:
1. Which raw material is likely to be most expensive to transport and why?
2. Which raw material is likely to be the cheapest to transport and why?
3. Do you think the cost of transporting the finished products after
packaging is likely to be cheaper or more expensive than the cost of
transporting aluminium and plastic? Why?
Chemical Industries
Is a fast growing & diversifying industry
Contributes approximately 3 % GDP
3rd in Asia and 12th in the world
Includes both large & small scale units
Inorganic chemicals like H2SO4, HNO3, alkalies, soda ash &
caustic soda.
Widely spread over the country
Organic chemicals include petrochemicals, which are used for
manufacturing of synthetic fibers, rubber, plastics, dye-stuffs,
drugs & pharmaceuticals are located near oil refineries
The chemical industry is its own largest consumer.
Basic chemicals are used to further produce other chemicals
that are used for industrial application, agriculture or directly
for consumer markets
Make a list of the products you are aware of.
Fertiliser Industry
Centred around the production of fertilisers like urea,
phosphates & DAP and complex fertilisers
Have a combination of NPK
Potash is entirely imported
India 3rd largest producer of nitrogenous fertilisers
57 manufacturing nitrogenous fertilisers
29 for urea
9 for producing ammonium sulphate
68 superphosphate
10 public sector undertakings
One in cooperative sector at Hazira in Gujarat
After Green Revolution industry has expanded
Gujarat, TN, UP, Punjab and Kerala contribute towards half
the fertiliser production
Other producers are Andhra, Orissa, Rajasthan, Bihar,
Maharashtra, Assam, WB, Goa, Delhi, MP & Karnataka.
Cement Industry
Essential for construction
Requires bulky and heavy raw materials like limestone, silica,
alumina and gypsum
Coal and electric power are needed along with railway line
Ist cement plant was set up in Chennai in 1904
After Independence, industry expanded
Decontrol of price and other policy reforms led industry to progress
128 large plants and 332 mini cement plants in the country
Improvement in quality has made it available in East Asia, Middle
East, Africa and South Asia apart from a large demand within the
country.
This industry is doing well in terms of production as well as export.
Efforts are being made to generate adequate domestic demand
and supply in order to sustain this industry
Automobile Industry
Provide vehicle for quick transport of good services and
passengers
Following vehicles are manufactured in India at various
centres
• Trucks • Scooters
• Buses • Three-wheelers and
• Cars • Multi-utility vehicles
• Motor cycles
Post liberalisation, the latest models stimulated demand The industry
for vehicles, which helped the industry grow is located
around…. Delhi
Industry experienced a quantum jump < 15 years Gurgaon
Lucknow
Foreign Direct Investment brought in new technology and Indore Kolkata
aligned the industry with global developments
Mumbai Pune Jamshedpur
15 manufacturers of passenger cars & multiutility vehicles Hyderabad
9 of commercial vehicles
Bangalore Chennai
14 of the two and three-wheelers
Information Technology and Electronics Industry
Covers wide range of products required by the telecom industry
transistor sets to television, telephones, cellular telecom, pagers,
telephone exchange, radars, computers and many other
equipments
Bangalore has emerged as the electronic capital of India
Other centres includes Mumbai, Delhi, Hyderabad, Pune, Chennai,
Kolkata, Lucknow & Coimbatore
18 IT parks provide single window service to software experts
Major impact is in employment generation
31 March 2005, IT industry employed over one million persons
Expected to increase eight-fold in the years to come
Over 30 % of the employees are women
Is a major foreign exchange earner, through Outsourcing (BPO)
sector.
Continuing growth in the hardware and software is the for IT industry
Industrial Pollution & Environmental Degradation
Industries while contributing to India’s economic
growth and development, also increases the
pollution of land, water, air, noise and resulting
degradation of environment.
This cannot be overlooked
Industries are responsible for four types of pollution:
Air
Water
Land
Noise
Heat
Air pollution
Caused by the presence of high
concentration of undesirable gases
Air pollution adversely affects human
health, animals, plants, buildings and
the atmosphere as a whole.
SO2 & CO
SPMs like dust, sprays mist & smoke
Smoke from chemical & paper
factories, brick kilns, refineries &
smelting plants
Burning of fossil fuels in big and
small factories ignoring pollution
norms
Gas leaks can be very hazardous
with long-term effects
Recall the Bhopal Gas tragedy
Water Pollution
Caused by organic and inorganic industrial wastes
and effluents discharged into rivers
Paper, pulp, chemical, textile and dyeing, petroleum
refineries, tanneries let out dyes, detergents, acids,
salts and heavy metals like lead and mercury
pesticides, fertilisers, synthetic chemicals with carbon,
plastics and rubber, etc. into the water bodies
Fly ash, phospo-gypsum and iron and steel slags are
the major solid wastes in India
Every litre of waste water discharged by our industry
pollutes eight times the quantity of freshwater
Noise Pollution
Results in irritation and anger
Can also cause temporary or
permanent hearing impairment
Increased heart rate and blood
pressure among other physiological
effects
Unwanted sound is an irritant and a
source of stress
Industrial and construction activities,
machinery, factory equipment,
generators, saws and pneumatic and
electric drills also make a lot of noise
Control of Environmental Degradation
Minimising use water for processing by reusing Involves recycling of wastewater
and recycling it in two or more successive stages
withdrawing ground water needs to be
Harvesting of rainwater regulated legally
Treating effluents before releasing them in rivers Particulate matter in the air can be reduced
and ponds. by fitting smoke stacks to factories with
electrostatic precipitators, fabric filters,
Treatment of effluents & Sewage is done in three
scrubbers and inertial separators.
major phases
Primary treatment by mechanical means. This Smoke can be reduced by using oil/ gas
involves screening, grinding, flocculation and instead of coal in factories
sedimentation Machinery used should be fitted with
Secondary treatment by biological process silencers
Tertiary treatment by biological, chemical and All machinery be redesigned to increase
physical processes energy efficiency and reduce noise
Noise absorbing material may be used apart
from personal use of earplugs & earphones.
The NTPC Way
NTPC is a major power providing corporation in India.
It has ISO certification for EMS (Environment
Management System) 14001.
The corporation has a pro-active approach for
preserving the natural environment and resources like
water, oil and gas and fuels in places where it is setting
up power plants.
Adopting latest techniques & improving equipment
Minimising waste generation by maximising ash utilisation
Develop green belts for nurturing ecological balance
Promoting afforestation.
Fly-ash pond management, ash water recycling system and
liquid waste management
Ecological monitoring, reviews and online database
management for all its power stations.
