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| Last Updated:: 14/05/2019

Industry

 

 

Department: In Kerala,the department of industies and commerce is headed by a Principal Secretary to Government. This department is responsible for promoting/ sponsoring, registering, financing and advising industries in the state. The department and its agencies also guide the entrepreneurs in the selection of appropriate industrial ranges in the private, public, joint and co-operative sectors. Directorates of industries and Commerce, Handloom and Textiles, Coir Development, Mining and Geology and 72 Public Sector undertakings fall under this department. Visit Kerala's position is 12th in the industrial ranking among the major 16 States in India . It was reported that about 22.5 % of the total income of the State came from the secondary sector during 1980-81, which was only 17% during 1970-71. The industrial sector of Kerala employed 15% of the total workers against the national average of 9%.

 

Industrial Growth Centres:As per scheme announced by the Central Government, Government of Kerala has entrusted Kerala State Industrial Development Corporation Ltd (KSIDC) for developing and managing Industrial Growth Centres in various locations in the state. Accordingly KSIDC has acquired /purchased land at four industrially backward locations in the following districts:

 1.Kannur  - Valiyavelicham (Kuthupramba)

2.Kozhikode - Kinalur (Balusserry)

3.Malappuram - Panakkad (Malappuram)

4.Alappuzha - Pallippuram (Cherthala)


 

             The Industrial Growth Centres at the above locations are under various stages of development and basic infrastructural facilities such as road, water, power, telecommunication etc are already put in place. Steps are being taken to improve the facilities further.Industrial plots are available at these Growth Centres and entrepreneurs can get the same for setting up industrial units, on long lease for a period of ninety years. The units coming up in the IGC are supported by Single Window Clearance Mechanism of State Govt.

 

Major Industrial Locations: Most of the industrial and commercial establishments in Kerala are concentrated in the coastal zone.Among the coastal districts, Ernakulam and Trivandrum have fairly large number of industries along the coast, followed by Alappuzha, Kollam, Kozhikode , Kannur, Kasargod and Malapuram. Eloor- Edayar- Ambalamugal area is the major industrial area located in the coastal zone in the city of Kochi in Ernakulam District along the banks of the Cochin backwaters.

 

Major Industries such as

  • Fertilizer and Chemicals Travancore Ltd.(FACT)
  • Kochi Refineries Ltd.(KRL)
  • Hindustan Organic Chemicals (HOC)
  •  Cominco Binani and Cochin Shipyard are located in Kochi availing the advantage of the port facilities.

          The world famous Chavara placer deposits of the Kollam district support three major mineral industries in Kerala viz.

  • The Indian Rare Earths Ltd. (IRE) 
  • Kerala Minerals and Metals Ltd.(KMML) at Chavara (Kollam)
  • The Travancore Titanium Products (TTP) at Veli (Trivandrum).

 

            These units are situated closer to the sea. The Excel Glass factory situated near Cherthala utilizes the silica sands of the coastal zone of Alappuzha district for the manufacture of glass. Most of the seafood and coir industries in Kerala are located in the coastal area and are concentrated in Alappuzha district. There are 101 seafood factories in the coastal zone with a freezing capacity of approximately 1868 t /day, of which 47 are approved by the European Union. Besides, there are 210 peeling sheds and 217 ice plants. Cashew processing industries, a traditional enterprise in the state are mainly situated in the coastal area of Kollam district.There are about 300 large and medium scale industries and 1,66,000 small scale industries, most of them are located in the coastal area (KSPCB, 20002). Of these 250 large and medium scale industries and 5000 small scale industries are polluting significantly to the environment.   

 

District-wise break up of Medium and Large Scale Industries in Kerala as on 31-03-2007

 

Map of Kerala showing important Fishing Harbors & Ports.  

 

Industrial sector in Kerala

 

                       Industrial sector in Kerala comprises medium and large industries, micro, small and medium enterprises (MSME) and traditional industries. The departments/agencies that deal with medium and large industries are Kerala State Industrial Development Corporation Ltd (KSIDC), Kerala Industrial Infrastructure Development Corporation (KINFRA), Public Sector Restructuring and Internal Audit Board (RIAB), Bureau of Public Enterprises (BPE) and Centre for Management Development (CMD). The agencies dealing with MSME and traditional industries are Department of Industries and Commerce, Directorate of Handloom and Textiles, Directorate of Coir Development, Khadi and Village Industries Board and Capex. Department of Mining and Geology also comes under this sector. The subsector-wise outlay and expenditure in the Twelfth Five-Year Plan and Annual Plan 2016-17 and 2017-18 are shown in the table below:

 

Sub Sector-wise Outlay and Expenditure, in lakh

 

 

Sl. No

Name of Department/Scheme

XII Five-Year Plan

Annual Plan  2016-17

Annual Plan 2017-18

Outlay

Expenditure

Outlay

Expenditure

Outlay

Expenditure (as on Oct 2017)

1

Medium and Large Industries

130643.0

99932.0

29178.0

18023.3

48296.0

20407.0

2

Department of Mining and Geology

893.0

536.1

84.00

48.8

135.0

88.33

3

Village and Small Scale Industries

169198.0

152328.1

36631.0

39593.9

40446.0

13048.3

Total

300734.0

252796.2

65893.0

57666.0

88877.0

33543.6

Source: Budget Estimate

           

                  The Government earmarked Rs.3,007.3 crore for the industries sector during the Twelfth Five-Year Plan and the expenditure was Rs.2,528 crore (84.1 percent). In Annual Plans 2016-17 and 2017-18, the outlays for the sector were Rs.658.9 crore and Rs.888.8 crore respectively. The expenditure in Annual Plan 2016-17 was Rs.576.7 crore (87.5 percent) and in 2017-18, the expenditure reported as on October 2017 was Rs.335.4 crore (37.7 percent). The amount earmarked in Annual Plan 2017-18 for industry sector was 35 per cent higher than the previous year.

 

                  In Kerala, the MSME sector has consistently been registering higher growth rates compared to other sub sectors in the industrial sector.In the State Budget for 2018-19, an outlay of ₹445.06 crore was provided for Village and Small Enterprises and the expenditure up to 31, October 2018 is ₹176.12 crore (39.57 percent).In the Annual Budget 2018-19, an amount of ₹160.01 crore was provided under the MSME Sector. Due importance was also given to gender budgeting. Three new schemes viz., Insurance Scheme for MSMEs, State Sponsored Cluster Development Programme (SS CDP) and Revival of MSMEs with Stressed Assets have been taken up in the year 2018-19. The details are given below:

 

 

Plan outlay and expenditure of village and small enterprises Annual Plan 2017-18 and 2018-19, in ₹ crore

Sl. No.

Sector/Sub sector

Annual Plan (2017-18)

Annual Plan (2018-19)

6.1

Village and Small Enterprises

Outlay

Expenditure

Outlay

Expenditure (as on 31.10.2018)

i

Small-scale Industries

128.06

92.52

151.06

39.17

ii

Commerce

4

3.96

4.4

2.58

iii

Handicrafts

5.95

5.01

4.55

3.38

 

Sub Total (MSME)

138.01

101.51

160.01

45.14

iv

Handloom and Powerloom

71.92.

92.06

70.92

28.49

v

Coir industry

128.12

98.75

141.08

71.99

vi

Khadi and Village Industries

16.91

7.23

18.6

5

vii

Cashew Industry

49.5

79.13

54.45

25.5

 

Total(Village and Small Enterprises)

404.46

378.71

445.06

176.12

Source: Budget 2018-19; Plan space

 

 Micro Small and Medium Enterprises (MSMEs)

 

            The Micro, Small and Medium Enterprises (MSME) sector is fast emerging into a major income generating and employment providing sector in Kerala with relatively lower investment. Kerala is one of the main centres of MSMEs in the country. As per the MSME survey & Quick Results of 4th Census 5.62 % of all India share of MSME enterprise is in Kerala. MSME sector can lead the State economy by increasing exports through quality production techniques and products. Government provides various schemes in MSME sector, targeting various social groups like SC, ST, Women, Youth, and Physically Handicapped etc. In Kerala, Government and banks are providing lot of facilities for MSME Sector.

           

            Within the MSME Sector there is a significant increase of Micro Enterprises, both in terms of working enterprises and employment. There are over 6000 various MSME products ranging from traditional to high-tech items which are manufactured in this sector. MSMEs play a critical role in innovation, and have ability to experiment with new technologies on small scales. However, they often suffer from funds, lack of entrepreneurial spirit, inability to take technology developments risks and face the difficulty of attracting skilled manpower. The industries coming under this sector are handicrafts, Handloom, Khadi, Food processing industries, Garment making and Textile industries, industries related to coir/wood/bamboo/Plastic/rubber/ leather/clay products etc.Performance of the sector for the past 5 years

 

            The total number of SSIs/MSMEs registered in Kerala as on 31.3.2013 is 219444 against 205987 in the previous year indicating a growth of about 7 percent. Out of the total SSIs/MSMEs, 4 percent are promoted by SCs, approximately 1 percent by STs and 25 percent by women entrepreneurs. The total investment was  Rs 1212674 lakh in 2012-13 against  Rs 1083169 lakh in the previous year, with an increase of almost 12 percent and the total number of employment generated was 1103126 indicating more than 8 percent over the previous year which was 1021162. Details of enterprises are given here .                

  

         The number of New Enterprises filed Memorandum under MSMED Part II during the year 2012-13 was 13043. Out of which 413 MSMEs are by SC, 66 by ST and 3122 by Women. The number of new enterprises that filed Memorandum during 2012-13 shows 18 percent increase against 11079 of the previous year. Investment on the sector decreased by 3 percent from  Rs 190642.75 lakh of the previous year to Rs 185074.41 lakh in 2012-13 while employment generated increased by about 4 percent from 79181 to 81964. The value of goods and services produced in 2012-13 has been increased by 6 percent ie, Rs 621424.55 lakh over Rs 584985.35 lakh in the previous year. The details are given here . During the current year (as on 30.11.2013) 9048 new enterprises have filed memorandum with an investment of Rs 134207.07 lakh to provide employment to 54707 persons.

 

              Variations in investment, production & employment in MSME sector over the last 7 years is shown in the figures 1 &2. The Investments and production had been increased since 2008-09 but employment generated is almost constant. This shows that the MSME sector in the state is more capital intensive rather than labour intensive. The data is given  here [Fig 1: Investment, Production & Employment in MSME sector over 2007-13] [Fig 2: MSME units & Employment generated in MSME sector over 2007-13]

  

                In Kerala, during the current year (as on 30.09.2014) 6944 new enterprises have filed memorandum with an investment of Rs. 114829.70 lakh to provide employment to 39651 persons. The total number of working SSIs/MSMEs registered in Kerala as on 31.03.2014 is 234251 ie. 7% more than 219444 that of previous year.  Out of the total SSIs/MSMEs, 3.8% are promoted by SCs, 0.7% by STs and 25% by women entrepreneurs. The total investment was ` 1435301 lakh in 2013-14 against ` 1212674 lakh of previous year indicating an increase of 18% while the total value of goods and services produced was ` 5084827 lakh which indicates an increase of 17% over ` 4336994.79 lakh of previous year. The total number of employment generated was 1190944 while in the previous year it was 1103126 indicating an increase of about 8%. The details are given in here      

 

            According to the recent reports published in the Economic Review 2014, the MSMEs sector showed a consistent growth of 11% till 2010-11, whereas growth rate was 19% in 2011-12 and 14% in 2012-13. In India, service sector have grown up very rapidly. As per the latest estimates (2014) MSMEs contribute 30% to the GDP in the Services Sector. The Ministry of MSME has been allocated outlays of   Rs. 2,700.00 crore, Rs. 2,835.00 crore, Rs. 2,977 crore and Rs. 3,327.00 crore for 2011-12, 2012-13, 2013-14 and 2014-15 respectively for promotion of MSMEs in the country. During Twelfth Five Year Plan an outlay of Rs. 24,124.00 crore has been allocated for Ministry of Micro, Small and Medium Enterprises (MSME), which represents an increase of 133.53% over the XIth Five Year Plan allocation of Rs. 10,330.00 crore.             

 

           The Data are given here: [Trends in investment, production & employment in MSME sector over the period from 2011-12 to 2014-15 and the number of MSMEs registered for the same period]

 

           According to Economic Review report 2015, the Fourth All India Census of the MSME total number of MSM enterprises were 3.61 crore, of which 0.16 crore are registered enterprises. These MSMEs, contribute 37.5 per cent of India’s GDP, have a critical role in boosting industrial growth and ensuring the success of the Make in India programme. A number of schemes are being implemented by Ministry of MSME, Government of India, for the establishment of new MSMEs and growth and development of existing ones. 

 

          During Twelth Five Year Plan an outlay of 24,124.00 crore has been allocated for Ministry of MSME, which represents an increase of 133.53% over the XIth Five Year Plan allocation of 10,330.00 crore. The Ministry of MSME has been allocating outlays of 2251.00 crore, 2610.00 crore and 2612.51 crore for the years 2013-14, 2014-15 and 2015-16 respectively under Plan for promotion of MSMEs in the country.

 

          The number of New Enterprises filed Memorandum under MSMED Part II in Kerala during the year 2014-15 was 15455, 3.05% more than that of previous year which was 14997. Out of 15455, 600 (4%) MSMEs were registered by SC, 85 (0.5%) by ST and 3735 (24%) by women. Investment on the sector increased by 7.57% to Rs.238794.75 lakh from Rs.222412.30 lakh in the previous year while employment generated decreased by 5% from 87789 to 83500 numbers. The value of goods and services produced in 2014-15 increased by 5.4% to Rs.675597.11 lakh in the previous year. The details are given here. In Kerala, during the current year (as on 30.09.2015) 6915 new enterprises have filed memorandum with an investment of Rs.157799.62 lakh to provide employment to 38280 persons. The details are given here. As on 31.03.2015, the total number of working SSIs/MSMEs registered in Kerala is 249696. Out of the total SSIs/MSMEs, 4% were promoted by SCs, 0.7% by STs and 25% by women entrepreneurs. The total investment was Rs.1673851.70 lakh while the total value of goods and services produced was Rs.6444288.56 lakh which indicates an increase of 26% over 50848.27 lakh of previous year. The total number of employment generated was 1274385 as on 31.03.2015. The details are given here.      

 

         The number of new enterprises filed Memorandum under MSMED Part II in Kerala during the year 2015-16 up to September 17, 2015 was 7705. Out of these, 301 (3.9%) MSMEs were registered by entrepreneurs belonging to the SC community, 31 (0.4%) by entrepreneurs belonging to ST and 1805 (23.42%) by women. Investment in the sector during the period was 1,29,356.95 lakh while employment generated and the value of goods and services produced were 45407 Nos. and 3,38,001.36 lakh respectively. The details are given in here.

 

          As on September 17, 2015, the total number of working SSIs/MSMEs registered in Kerala are 2,57,466. Out of the total SSIs/MSMEs, 3.84per cent were promoted by SC entrepreneurs, 0.72per cent by STs and 24.97per cent by women entrepreneurs. The total investment was 17,98,646.38 lakh while the total value of goods and services produced was 67,65,143.93 lakh and the total number of employment generated was 13,18,666 Nos. The details are given in here.

 

      EM Part II had stopped in DIC from September 18, 2015 and online registration in UdyogAadhar has started. From September 18, 2015 till March 31,2016 the number of UdyogAadhar Memorandum filed were 11317 Nos with investment in plant & machinery of 1,90,735 lakh and the employment generation of 75402 nos. (www.udyogaadhar.gov.in). The details are given in here. Trends in investment & employment in MSME sector over the period from 2011-12 to 2015-16 is shown here.                                               

 

             The investment in the sector during the period from 2011-12 to 2014-15 has increased on an average by 9.73 percent. The investment has shown a steady upward trend over the period. The value of production shows an enormous increase of 25 percent during 2013-14. The employment has remained more or less constant over the period. The value of production and employment generation were at their peak during 2013-14.

 

             The rate of growth of the number of MSME units has been increasing though at a declining rate from 2011-12 to 2014-15. However for the year 2015-16 from April- September 2015 there has been a growth rate of 10.95 % that is from 6944 as on September 2014 to 7705 as on September 2015 and is shown here.

 

          The growth rate of employment generated over last 4 years is given below. There has been increase in employment generation for the years 2012-13 and 2013-14. But the employment generated has decreased by 4.88 percent in 2014-15. However for the year 2015-16 from April- September 2015 there has been a growth rate of 14.51 percent, that is, from 39651 as on September 2014 to 45407 as on September 2015 are given here.

                 

         According to DIC, 15535 new MSME units were started in Kerala in 2016-17 with a total investment of Rs.138,711.73 lakh, and generating employment for 57,445 persons. A total of Rs.1,691.98 crore was provided for the development of the MSME sector in the 12th Five-Year Plan period and the expenditure incurred was Rs.152.38 crore (90.02 per cent).The details shown here.

                 

MSME sector in Kerala 

                   

                    In Kerala, DIC discontinued the practice of filing EM Part II from September 18, 2015, and in its place, started online registration in Udyog Aadhar. As on March 31, 2018, the total number of Udyog Aadhar Memorandums filed was 55,090, under which the number of micro, small and medium units in the manufacturing sector were 31,518, 4,517 and 215 respectively (totalling 36,250 numbers). In addition, there were 15,292, 3,437, and 111 micro, small and medium units respectively in the service sector, amounting to a total of 18,840 numbers. The details are given in the figure below:

 

Number of micro, small and medium units registered under manufacturing and services sector for the year 2017-18

 

                     According to DIC, 15,468 new MSME units operations started in Kerala in 2017-18 with a total investment of ₹1,24,961.00 lakh, and generating employment for 51,244 persons. Ernakulam occupies the highest position in new MSME units generating 1,895 jobs, while Palakkad tops in employment generation with 6,391 new jobs. Idukki was at the lowest position with 248 new MSME units, generating employment for 692 persons.

 

      

District wise achievements

 

           District wise analysis reveals that during the year under review, Ernakulam occupies highest position in all aspects with 1878 new MSME units and Idukki was at the lowest position except in total investment. Idukki has only 193 new MSME units. The Wayanad District shows the minimum investment of Rs 3296.74 lakh. But the maximum number of SSI/MSME units is in Thiruvananthapuram with 29720, Thrissur at second position. District wise investment, Value and Employment of Enterprises registered in Kerala during 2012-13 and 2013-14 (up to 30.09.2013) are given here.

 

        District wise analysis reveals that during the year under review, Ernakulam occupies highest position in all aspects with 2248 new MSME units and 15468 numbers of employment generated and Idukki was at the lowest position with 302 new MSME units and 1608 numbers of employment generated. Wayanad District shows the minimum value of goods and services produced of 7837.90 lakh.

  

         District wise analysis reveals that during the year under review, Thiruvananthapuram occupies highest position with 298 new MSME units and Ernakulam tops in numbers of employment generated with 10105 and Wayanad was at the lowest position with 184 new MSME units and 777 new jobs generated. In case of online registration from September 18, 2015 to March 2016 Ernakulam occupies the top position in all aspects with 2129 new MSME units, 48371lakh investment and 18857 employments generated. The details are given here. 

 

                  Based on the Economic Review 2017, Ernakulam occupies the top position with 2267 new units and 8981 employees in the MSME sector. Wayanad was at the lowest position with 216 new MSME units, generating employment for 634 persons. The details are given are given here.

 

District wise MSME units with Udyog Aadhaar Number as on 31-03-2018 is given below:

 

 

MSME unitswith Udyog Aadhaar Number as on 31-03-2018

District Name

Manufacturing

Services

Total

Grand Total

 

Micro

Small

Medi

um

Total

Micro

Small

Med

ium

   

1

Thiruvanan

thapuram

5030

366

15

5411

4525

798

15

5338

10749

2

Kollam

2778

315

11

3104

823

188

6

1017

4121

3

Pathanamthita

1047

95

10

1152

426

68

0

494

1646

4

Alappuzha

2975

304

31

3310

838

156

10

1004

4314

5

Kottayam

1860

245

13

2118

868

198

7

1073

3191

6

Idukki

757

65

4

826

269

56

1

326

1152

7

Ernakulam

5242

1402

57

6701

3364

990

35

4389

11090

8

Thrissur

3515

432

21

3968

1455

328

9

1792

5760

9

Palakkad

1699

327

23

2049

762

126

14

902

2951

10

Malappuram

1867

269

5

2141

452

122

3

577

2718

11

Kozhikode

2055

295

13

2363

601

193

6

800

3163

12

Wayanad

442

63

1

506

111

30

0

141

647

13

Kannur

1589

245

11

1845

513

108

4

625

2470

14

Kasargod

662

94

0

756

285

76

1

362

1118

Total

31518

4517

215

36250

15292

3437

111

18840

55090

Source: Directorate of Industries & Commerce

                 

 

District-wise details of new MSME units started in Kerala during 2017-18 as per Performa 2 received in DICs .

 

 

District-wise details of new MSME units started in Kerala during 2017-18 as per Performa 2 received in DICs

Sl.No

State / District

No of MSME units started as per preform 2

Total Investment (Rs. crore)

Employment generated (Nos.)

1

Thiruvananthapuram

1656

90.12

5559

2

Kollam

1063

109.31

3815

3

Pathanamthitta

833