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Wednesday, October 10, 2001

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A broadsheet feature on Okhla Industrial Area, Delhi -- Of opportunities and growth


The Okhla Industrial Area conceived by Nehru has more than fulfilled his dream of making India an industrial power. P.T. Jyothi Dutta outlines its many achievements including the setting up of the Okhla Industrial Estate, and talks to some of the pioneer s of the area who have given it the status of a much-sought after address in the industrial world.

HOME to more than 3,000 industrial units, the Okhla Industrial Area Phase I and II, together form one of the largest industrial areas in the country. And along with Phase III, separately referred to as Okhla Industrial Estate -- Okhla Industrial Area wa s a dream of Jawaharlal Nehru.

Conceptualised to be a springboard for budding entrepreneurs and companies, Okhla Industrial Area professes the underlying spirit of `Unmatched Opportunities and Unlimited Growth.'

Phases I and II:

Okhla Industrial Phase I and Phase II is one of the 28 notified industrial areas of Delhi, as per the Master Plan of 2001. And revenue earners from this base include ready-made garment exporters and leather garment exporters, besides other segments of in dustry such as pharmaceutical manufacturing units, plastic and packaging industries, printing presses, machinery manufacturers and others.

Phase II includes a separate block (DSIDC Sheds), also known as the Computer Complex meant for software and IT-related companies.

Some of the popular names that have grown and emerged from Okhla Industrial Area include Luxor Pens, Airtel (Bharti Cellular), Essar Cellphones, Ranbaxy, Xansa, Logicstat, Salora TV, Oriflame, Vintron, Tata Steel, Tata Exports, Dishnet DSL, Fena Soap, be sides a host of leading exporters from various sectors.

# Okhla Industrial Area's edge over others of its ilk stems from some of its inherent features. For instance, the availability of a variety of options in plot sizes from the smallest factories to plots of over 4,000 square meters and larger, have attrac ted investors big and small alike. The area has space to accommodate from the smallest ancillary units to large scale manufacturers.

It is well connected by road and rail and is not far from the airport, as it is located in the centre of the National Capital Territory. Business districts such as Nehru Place and Connaught Place are not far and even the inland container terminal of the Container Corporation of India is also close at hand.

Since there are other industrial areas, in and around Delhi, there is a constant mobility of skilled and semi-skilled labourers, thus making them available in plenty. Also, the proximity to importers and exporters in Delhi facilitates exports and imports .

Basic necessities, in terms of electricity and water, prompt telephone connections, internet, cellular connectivity, courier service providers, security services and several other services makes this place ideal for engineering, technology and IT-related companies.

The Okhla Industrial Area also has an active association, Okhla Industries Association, that helps budding entrepreneurs and companies planning to invest in the Okhla. The Association's general secretary, Mr Harish Arora, points out that the biggest prob lems faced by the area was the regime of `inspector raj', being perpetrated by numerous inspectors belonging to the MCD, sales tax department, labour, Delhi Vidyut Board and Delhi Jal Board. According to him, in the wake of the unprecedented slump that i ndustries are going through and with the WTO regime hovering over the industry's head -- if industries have to survive and progress, the Government would have to put a stop to the harassment they face.

``Another disturbing feature,'' he points out, ``are the slums in the vicinity housing about 80,000 slums. In addition to polluting the area, the slums further threaten the ground reserves of the area.''

Phase III:

The Okhla Industrial Estate or Phase III spreads over 110 acres and is a modest industrial beginning laid out British architect Mr Walter George, also famous for the planning and construction of Parliament House, North and South Blocks.

This area houses over 200 units, more so in the SSI sector, producing a range of products from electronic items, machine tools, automotive components, bicycle parts, sports goods, writing instruments, leather articles and garments, among others.

The estate employs over 15,000 workers and produces goods worth Rs 700 crore, 40 per cent of which are being exported to various countries around the globe. The success of Phase III of the industrial area has been largely attributed to the planned develo pment programme and a careful selection of industries.

In the recent past, focus has been getting concentrated on electronics, telecommunications, biotech and IT sectors. Some of the companies operating from this base include : Luxor Writing Instrument Ltd., Bacardi, Gopal Zarda, Schneider Electric, The Cont rol Group, New Holland Tractors and Star TV.

Companies having operations worldwide are also scouting for space here, wither to set up a new unit or tie-up with existing units. Heads of state and government officials from over 50 countries have visited the Okhla Industrial Estate, besides a host of Indian dignitaries.

Mr D.K.Jain, Chairman and President, Luxor Writing Instruments Ltd is the President of Okhla Industrial Estate Association, Phase III. The Okhla Industrial Estate Association Phase III, works as a vital link between the Industry and various departments o f the Union and Delhi State departments. Besides addressing problems of a routine nature, the association also promotes quality, productivity, export and better industrial relations on the Estate.

The Okhla Industrial Estate Association also maintains a full-fledged secretariat, besides providing an exhibition hall where products manufactured in the Estate could be displayed.

Apparently, the Estate has been a touchstone to estates across the country and other regions like Asia, Africa and Latin America. The Association had also been adjudged the best Industrial Association in India and a trophy to this effect was awarded to t hem by the Industries Minister.

There has been a steady increase in white-collared jobs in the Estate and subsequently, the Association is now planning to set-up modern facilities including cafeterias and multi-level parking facilities to facilitate ease of use.

# Mr D.K.Jain of Luxor Writing Instruments Ltd, transformed the stationary shop that his father ran to a name to reckon with in writing instruments. And this has come as a boon to the Indian consumer hitherto used to writing with ineffective ballpoint s. Luxor pioneered the needlepoint technology under the Pilot brandname, a technology that has since scripted its own popularity.

Another company that has done well for itself is The Control Group. A conglomerate of seven companies, the company was set up in 1966 and it has created a place for itself over the last three decades. The flagship company manufactures a spectrum of produ cts -- air circuit breakers, switch fuse units, switch disconnectors, current transformers, moulded case circuit breakers and electronic motor protection relays, among others. The group is headed by Mr R.N.Khanna (CMD), and Mr Ashok Khanna (MD & Director Technical).

Other performers from here include : Logicstat Group, founded by Mr Surinder K.Bhal, CMD of Logicstat International Ltd. The group is a pioneer in transformers and also produces other products like CVTs, Battery Chargers and other electrical products. Al so belonging to the Logicstat Group is SITI@education, a training institute to offer a diploma programme in customer relationship management (CRM).

Another stationary company, Sona Products, also has its manufacturing base here. The German manufacturing unit produces note-pads and books. Also present in the Okhla Industrial Area is a company established in 1979, going by the name, Mechanical Cocks & Valves (India). Founded by Mr G.C.Tuteja, the company has a turnover of more than Rs one crore, per annum and has plans of expansion in its product portfolio comprising sanitary fittings, heating elements, geysers, LPG auto parts and others.

Given the opportunities of Okhla Industrial Area and its potential for growth -- it is just a matter of time before more success stories are scripted from here.

Pic.: Okhla offers plots in a variety of sizes to accommodate the small ancillary units as well as large-scale manufacturers.

Picture by Ramesh Sharma

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