The Hindu Business Line : Towards sustaining prosperity

The town lies in a hot and dry belt. The soil is black. The minerals found are limestone, charnockite and unclassified gneissic rocks. It has rainfall much below the state average. It has a high mean temperature and a low degree of humidity.

It is on the stretch of National Highway 47 connecting Madurai in the north to Kanniayakumari, in the deep south. Well connected by rail link, the nearest airport is at Madurai and the port, at Tuticorin.

Agriculture

Lack of irrigation facilities has made agriculture dependent on rains. While Paddy, Cumbu, Maize, Cotton and certain horticultural crops like Mango, Onion and Chillies are cultivated in the district and made part of the upcoming Agriculture Export Zone (AEZ) for export of mangoes at a project cost of Rs.24.6 crore, the town proper has remained bereft of any significance.

Industry

While the district abounds with several clusters in small scale industries like the fireworks, matches and printing in Sivakasi, cotton spinning mills in Rajapalayam, nib units in Sattur, the town has not lend much scope for industrialisation. Early attempts have seen the promotion of Virudhunagar Steel Rolling Mills, Virudhunagar Textiles and a sugar mill at Pandiarajapuram. Efforts like these did not meet with much success and the trader-entrepreneur beat a hasty retreat thinking that they were best suited only for trading, it is said.

The plaster of paris and lime powder industries that were started have declined due to competition and change in consumer preferences. The tiny and small industries for the manufacture of tin containers for packing, sprouted and succeeded only for a while. They got halted due to the advent of flexible packaging materials in the market coupled with illegal import of tinplate materials in the guise of metal scrap, according to Mr.C.Brindavan, Managing Director, S.P.G.C. Metal Industries Pvt.Ltd., a manufacturer in decorated metal containers. The claim to a significant industrial presence is lent by the Madras Cements Ltd. located at Thulukkappatti in the outskirts and the TTK-LIG Limited, a joint venture between the TTK Group, Chennai and the SSL International plc., U.K, in the town, engaged in the manufacture and marketing of latex condoms internationally. The TTK-LIG Virudhunagar facility inaugurated in 1990, is described as the fulfillment of the commitment of the TTK Group to K.Kamaraj, to set up a unit in the town. Together with the company's other facilities at Chennai and Pondicherry, the annual production of condoms is around 1.5 billion. This facility accounts for 39 percent. It provides employment to around 700 people directly. Its flagship brand, Kohinoor, commands around 45 percent market share, according to Mr.N.Muthukumar, General Manager (Operations).The unit has secured many national and international awards.

Trade

There are a number of traders who have distinguished themselves and function as government recognized export houses in the business. VPSA VEL group of companies are leading Indian traders and exporters in chillies, chillie products, grains, oil, oil seeds and spices.The groups' sales exceed Rs.500 lakhs a year. VPSA Paramasivan Nadar and Coy. is yet another leading exporter in the business. YMEO Pvt. Ltd., with Rs.1,500 crore turnover is a leading exporter in edible oils. A.N.Dhamodharan Spices Pvt. Ltd. and S.P.G. Ramasamy Nadar and Sons lead in the export of spices. V.V.V and Sons, who entered the edible oil market in 1943, specializing in sesame oil, has carved out a nitch for itself through the promotion of its brand "Idhayam' as a cooking medium in Tamilnadu since 1986.

These traders purchase the items in bulk quantities from other states, especially from north India, process and despatch to other destinations. `Half of Kerala would starve but for Virdhunagar. Daily 25 lorry loads leave from here to that state' observes Mr.S.P.G.R.Nithyanandan., Sr.Partner, Ramasamy Nadar and Sons.

Diversification

In recent past, the traders have taken to capacity building to strengthen and sustain their business. They have diversified into building warehouses and cold storage facilities. The younger generation has attempted to enter food processing and other pursuits. Maami Foods Pvt. Ltd., an offshoot of P.C.Kannan and Company in corriander trade, has entered into the business of preparation of masala items and is emerging as a brand.The VPSA VEL Group has diversified into the manufacture of power conditioning equipments. A few others have taken to the manufacture of cotton yarn, manufacture of corrugated boxes and bituminous waterproof papers. A few more like Global Networks have taken to distribution of pharma products like `Dia Win Biscuits' as food supplement for diabetic patients and fast moving consumer goods items. Yet others are taking to software development.

The Idhayam group, adopting innovative marketing techniques in tune with tradition and culture has been promoting "Oil Pulling' as a medicinal cure for physical ailments of individuals.`There is tremendous response to the initiative' claims its Chief Excutive, Mr.V.R.Muthu.

Chamber's role and Traders' expectations

The Virudhunagar Chamber of Commerce And Industry established in 1944, has been rendering yeoman service to the cause of the traders. The `Spices Development Board' was set up due to its untiring efforts. According to the chamber president, Mr.V.V.S. Yogan, the current move of the government in making submission of `C'Form once in three months mandatory in the context of withdrawal of central sales tax, is a harassing move and unnecessary. Mr.P.C.K.Muralidharan, Executive Director, Maami Foods Pvt. Ltd. would like the government to clearly define its proposed amendment to the Prevention of Food Adulteration Act, so that genuine manufacturers are not harassed and put at the mercy of the discretion of the officialdom. The small edible oil traders have lost their identities due to the discriminatory import duty, points out Mr.M.M.N.M.Mathavan Manickavel, President, All India Edible Oil Manufacturers Association. To enable the survival of the tin industry it must be exempted from the purview of excise duty, pleads Mr.C.Brindavan of SPGC Metal Industries. "Any fair and just tax is acceptable and not too many taxes', asserts Idhayam Mr.V.R.Muthu.

The traders' body is happy that foreign direct investment would not be allowed in the retail business. The move towards free trade with the neighbouring countries is looked at as an opportunity. They expect the state government to adopt the value added tax (VAT) early so that the benefits are not lost on them any more.

Future

As to the future of the Virudhunagar town, the CII study has suggested jetropha cultivation for extraction of bio-diesel, given the hot and dry climate and the soil conditions. Another suggestion is the promotion of herbal plants for medicinal purposes. Given the strength of the town in education, IT enabled services and BPOs could be started, the study has further suggested.

The traders look forward to their sons abroad to provide the linkage for continuing the prosperity of the town. They also realize the need to adopt a professional management in running the business to sustain in the changing global scenario.

R. S. Rangarajan

More Stories on : Tamil Nadu | Education

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