The Hindu Business Line : Developing infrastructure can attract new industrial units to Erode

A thousand tonnes of poultry and cattle feeds every day. More than a lakh hatching eggs, and 10,000 chickens every week. And a hundred tonnes of edible oil processed every day. These are data about SKM Group, Erode, a 25-year old company with an annual turnover of Rs 200 crore, with exports to 26 countries. Mr SKM Maeilanandhan, Chairman and Managing Director of SKM Animal Feeds and Foods Ltd, takes on a few questions from Business Line.

Why Erode for SKM?

The aim of my enterprises - be they animal/poultry feed, egg powder, siddha, or cooking oil refinery - is to give employment opportunities for the rural masses thereby helping in the development of the economy. Moreover, I want to do something for the village where I was born and brought up, i.e., Saminathapuram, near Modakkurichi, Erode district. All my industrial units are located within about ten km around this village.

What are the advantages of Erode as a location for enterprises? What specific industries may find Erode apt?

Erode is totally an agrarian district where the fertility of the land and the river irrigation help farmers have agriculture as their main occupation. Erode is very famous for turmeric. After agriculture, the place is known for textiles, dyeing and weaving. Climatic conditions prevailing in this district are suitable for dyeing and bleaching industries, and also for tanneries, cattle and poultry farms.

What are your views on the availability of labour for business entities in Erode?

Nowadays, it is difficult to get labour, compared to other districts. Since lands are fertile, most people go for agricultural work, so finding labour is difficult for industries. Agriculture dominates in the economic development of the district.

Has Erode been successful in attracting investment?

No, Erode has not been very successful in attracting investments.

How do you visualise the future of Erode, in the context of the zooming growth in surrounding places such as Coimbatore and Tirupur?

Erode has a good scope in future. It has been expanding from 3 km radius to about 7 to 8 km radius now because of the growth of educational institutions, hi-tech hospitals. Floating population too has been increasing. There was a plan to make Erode a corporation. Implementing the same can see Erode make good progress in a short time.

Any reasons why Erode has not grown in export business as much as Tirupur?

Tirupur is totally into knitting business. Agriculture could not develop there because of water scarcity and dry climatic conditions. Erode, on the contrary, has an agrarian base. Because of the fertility of soil and water sources here, business has not grown as much as in Tirupur. Yet export activities in Erode have been on the rise, with reference to textile and egg powder.

Do you see untapped potential in the existing industrial units in Erode? Are industrialists in Erode aspiring to go national and global? And what are the obstacles?

There is not much of untapped potential in the existing industries in Erode. I see no obstacle in taking the business nationwide and globally.

Should there be policy changes, incentives and sops to make Erode an attractive destination?

Instead of policy changes, the Government should pay attention to developing the infrastructure, so that people may come forward in starting up new industrial units in this district.

Does the trend in real-estate prices in Erode go against the growth of industries?

Land rates are very high in Erode and real estate business has been picking up a lot, of late. But, that does not pose a hindrance for industrial growth in this district.

Your future plans.

Recently, we diversified into processing rice bran cooking oil to cater to the health-conscious. Our solvent and refinery plants are located in the hub of about 200 modern rice mills, helping us source fresh bran. SKM is planning a layer farm of 10 lakh birds under one roof with all bio-security measures in 100 acres of land with a project cost of Rs 80 crore.

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