The Hindu Business Line : ‘Hosur is ideally placed to attract fresh investments’

Hosur (TN), Oct. 15 This compact industrial town may not reflect its prominence as an important industrial hub of Tamil Nadu, but with its strong engineering base for over two decades Hosur has the potential to rival any big manufacturing centre.

Seventy per cent of the units in the small and tiny sector are engaged in manufacturing important components for the automotive industry, with exports forming part of its main activity.

Industrial hub

It has been an industrial hub for more than two decades and home to manufacturing plants of Ashok Leyland, Titan Industries, TT Prestige, Reckitt Benckiser, Hindustan Lever, Carborandum Universal and TVS Motors. The basic infrastructure is firmly in place.

However, large number of small and tiny vendor units are operating from scattered locations waiting for dedicated industrial units to leverage on common facilities to cut costs and invest on capacity expansions.

Besides, with Bangalore also reaching a saturation point, Hosur with similar attributes of salubrious climate and on the Golden Quadrilateral highway route to Chennai, is ideally placed to attract fresh investments from large industries to create greater opportunities to the existing units to grow further, said Mr S. Ramani Srinivasan, President, Hosur Small and Tiny Industries Association (HOSTIA).

Talking to Business Line, Mr Ramani Srinivsan said the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) had given an initial thrust two decades ago in turning this small township into a vibrant industrial hub, with an annual turnover of Rs 10,000 crore, there has been no significant investments lately.

However, with globalisation offering opportunities, Hosur should realise its full potential with a planned approach in providing an integrated industrial infrastructure on priority basis.

Hosur boasts of 1,500 small and tiny industrial units, serving as key tier two and three vendors to powerful players in the automotive and engineering manufacturing companies.

It also accounts for the largest customs and excise revenue contribution of Rs 1,000 crore to the Central exchequer.

Infrastructure

With its proximity to the Bangalore airport, about 40 km, and the Mangalore Port, Hosur could become a new magnet for large investments if the township is provided direct rail connection to Chennai via Jalarpet and a feeder airline is developed to cope up with the future demands from corporates.

With two SEZs proposed to be set up in the town, the regional air traffic is bound to grow, Mr Ramani Srinivasan pointed out.

He said the real estate fever has not infected Hosur and hence the prices are competitive at about 25-30 per cent lower in areas closest to Bangalore.

Mr Ramani Srinivasan said Small Industries Development Corporation Ltd set up a new industrial estate on 500 acres for relocation of the existing units and for new units to be set up to meet the growing demands of the industry.