MANUFACTURING INDUSTRIES

Meaning of Manufacturing Industries:

Industry involved in creation of new
products from raw material or
components. Ex – Sugar Industry convert
sugarcane to sugar, Iron & Steel Industry
raw iron ore to steel.

Need for Rapid Industrialisation in India:

i) Only rapid industrialisation can solve the problem of rising
unemployment.
ii) Rapid industrialisation provides
support and strength to our
agricultural base.
iii) Industries produce goods and
equipment required for the defence of
the country.
iv) Industries are required to keep pace
with the fast-moving world in terms of
advanced technology and know-how.
Factors affecting location of the Industry
Geographical Factors:
1. Raw material- Availability and nature affects location of
Industry. Ex Textile mills are located in Gujarat, Maharashtra.
2. Water Supply-needed for various process of production.
3. Energy- It is need for transforming RM – FG. Ex. Power for
smelting iron-ore
4. Transport-for bring RM and selling FG to market.
5. Labour-Cheap skilled and unskilled labour
Commercial Factors:
1. Role of the Government-Support and encouragement by Gov
2. Capital- Good banking and credit facilities.

Classification of Industries:
1. On the Basis of Raw Material:
(a) Agro-Based Industries: This group of industries depends on the
raw material produced by the agricultural sector. The major agro-
based industries are cotton, jute and textile industries.
(b) Mineral-Based Industries: These industries use minerals, both
metallic and non-metallic, as raw materials and are based on ferrous
and non-ferrous metallurgical processes. The major mineral based
industries include iron and steel, heavy engineering and machine
tool, cement, basic and light chemicals, fertilisers, etc.
(c) Forest-Based Industries: These industries use forest resources
like wood, rubber, lac, resin, etc.
(d) Animal-Based Industries: These industries use the raw materials
provided by animals like woollens, silk, dairy products, hides, skin
and leather industry, poultry, etc.

2. On the Basis of Nature of Products:

(a) Heavy Industries: These industries produce capital goods and
consumer durables which are quite heavy. These require large
capital and modern technology like iron & steel industries.
(b) Light Industries: These industries produce goods which are light
in weight. Less capital and labours are required. Like cycles,
electronic goods

3. On the Basis of Size of Investment and turnover:

(a) Micro enterprise : In these industries investment in plant and
machinery does not exceed 1 Crores and Annual turnover does not
exceed 5 Crores.
(b) Small Enterprise : In these industries investment in plant and
machinery does not exceed 10 Crores and Annual turnover does not
exceed 50 Crores.

(c) Medium Enterprise : In these industries investment in plant and

machinery does not exceed 50 Crores and Annual turnover does not
exceed 250 Crores.

4. On the Basis of Ownership:

(a) Public Sector Industries: These industries are owned and
managed either by the Central or State Government like railways,
post and telegraph.
(b) Private Sector Industries: These industries are owned and
managed by an individual or group of individuals like Reliance India
Limited (RIL).
(c) Joint Sector Industries: These industries are owned, managed and
controlled jointly by the private entrepreneur and the government
like Ipitata Sponge Iron Ltd.
(d) Co-operative Sector Industries: Co-operatives are the means by
which people with limited resources can pool their physical and
material resources like AMUL.
5. On the Basis of Location and Market:
(a) Village Industries: These industries fulfil the basic needs of the
local markets and raw material are provided by the village. like
handloom, pottery making, food processing, khadi
(b) Cottage Industries: These are also known as household
industries and are organised by individuals and with the help of
members of the households like carpet weaving, handicrafts
industry

6. On the Basis of Finished Product or Function:

(a) Basic Industries: These industries form the core industries on
which other industries depend like iron and steel industry.
(b) Secondary or Consumer Industries: These industries process the
basic raw materials into primary goods like textiles.
(c) Tertiary Industries: These industries provide public utility- based
services like railways.
(d) Ancillary Industries: These industries provide spare parts or
components required by big industries.

MAJOR INDUSTRIAL REGIONS

In India, the distribution of industries is highly uneven because of
the uneven distribution of necessary raw materials and energy
resources and also because of the concentration of enterprises,
financial resources.
The uneven distribution of industries can be identified from the
following:
(i) Agro-based industries like cotton, jute and sugar are
concentrated in the raw material producing areas. For example,
cotton textile in Maharashtra and Gujarat, sugar in UP and
Maharashtra and jute textile in West Bengal.
(ii) The forest-based industries like paper, plywood, resins and lac
are concentrated in the forest areas of various states.
(iii) The coastal belt of Kerala has a heavy concentration of coir,
copra and fish canning.
(iv) Most of the oil refineries are located near major ports.
(v) Jharkhand, Odisha, Madhya Pradesh, parts of Rajasthan, Tamil
Nadu and Karnataka account for most of the reserves of metallic
minerals. That is why these areas have a high concentration of
heavy metallurgical industries.

On the basis of concentration of major industries India can be

grouped into the following areas:
1. The Hooghly Belt: It constitutes one of the most important
industrial regions of India. Jute textiles, engineering, cotton textiles,
chemicals, leather footwear, paper and match works are the
important industries in the area.

2. The Mumbai-Pune Belt: This belt has a heavy concentration of

cotton textile, engineering, oil refineries, fertilizer and chemical
industries.

3. The Ahmedabad-Vadodara Region: Ahmedabad, situated in a

cotton-growing tract of Gujarat, has emerged as the second largest
centre of cotton textiles after Mumbai

4. The Chennai-Coimbatore-Bengaluru Region: Cheap cotton, a large

market, and cheap and skilled labour were the chief factors which
attracted a number of industries particularly cotton textile to this
area. Mettur, Sivasamudram, Papanasam, Pykara and Sharavati
projects supply cheap hydroelectric power. Chennai, Coimbatore and
Madurai are the leading centres of cotton and silk textiles.

5. The Chota Nagpur Plateau Region: This area covering parts of

Jharkhand and West Bengal produces over 80 per cent of India's
coal, substantial quantities of iron ore, manganese, bauxite, mica
and limestone. It has, therefore, become a hub of heavy industries.

6. The Mathura-Delhi-Saharanpur-Ambala Region: Around Delhi

which is one of the largest industrial cities in India. It has cotton
textile, glass, chemicals and engineering industries; sugar
industries, etc. Besides availability of cheap raw materials like
sugarcane and raw cotton, a large market is the main stimulus for
the industrial development in the area.

Agro – Based Industries

Industries that have agricultural produce as raw materials are
known as Agro-based Industries. These are consumer-based
industries.

Sugar Industry: Sugar industry is

India’s second largest organised
industry next to cotton textiles!
India is the second largest
producer of sugarcane in the
world.
Products: Sugarcane is an
important cash crop which is
crushed in the factories to
produce sugar. A fairly large
amount is also used to make gur
and khandsari.
By products: Besides proving sugar, gur and khandsari, it also
supplies molasses, bagasse and press mud.
Molasses is used in the
alcohol industry for the
distillation of liquor (rum),
power alcohol, etc.
Bagasse is used for
producing steam which is
used as a source of power
for sugar industry.
Press mud is utilised for
making wax, carbon paper
and shoe polish.

Distribution of Sugar Industry

Maharashtra:
Maharashtra is the leading producer of sugar in India. Due to marine
impact, the climate is ideal for the cultivation of sugarcane and the
crushing season is longer.
Northern India:
Uttar Pradesh is the second largest producer of sugar in India. In the
Ganga-Yamuna doab area, the main sugar producing centres are
Saharanpur, Meerut, Muzaffarnagar, Bagpat, Bulandshahar and
Ghaziabad.
Peninsular India:
Peninsular India has emerged as the leading producer of sugar in
the country. Tamil Nadu has higher per hectare yield of sugarcane,
higher sucrose content and longer crushing season.

Tendency of the Industry to Migrate to the South:

1. South India has the favourable maritime climate free from the
effects of summer loo and winter frost.
2. The black soil here is more fertile than the alluvial soil.
3. The cane is of superior quality with higher yield.
4. The excellent transport facilities in relation to export
markets.
5. The sugarcane farms in South India have bigger area and are
managed by the co-operative societies.
6. Longer crushing season.
Problems of the Sugar Industry:
1. The sugarcane cultivated in India is of poor-quality giving low
yield per hectare and low sucrose content.
2. The cost of production is quite high.
3. There is excess pressure on factories during
harvest time.
4. The supply of raw materials to sugar factories
is irregular.
5. Instead of sugar, the demand for gur and
khandsari is more.

Cotton Textile:
India is one of the largest cotton
textile manufacturing countries in
the world. Cotton textile industry is
divided into powerloom and
handloom sectors. The most
important powerloom are located in
Maharashtra, Gujarat and Tamil
Nadu. Handloom industry is located
in Mumbai, Ahmedabad.

The Main Cotton Manufacturing

Centres :
Maharashtra and Gujarat are the foremost cotton textile
manufacturing states. Mumbai has become the most important
centre of cotton textile in the country and is rightly called the
‘cottonpolis of India. It is also known as the Lancashire of India.
Ahmedabad, being the second largest cotton manufacturing city in
India is referred to as Manchester of India.

Mumbai and Ahmedabad have emerged as the most important

cotton manufacturing centres because of the following reasons:
(i) Proximity to Raw Material
(ii) Climatic Conditions
(iii) Transport Facilities
(iv) Port Facilities
(v) Labour

Problems of Textile Industry:

(a) Shortage of Raw Material: There
is a shortage of raw
material.
(b) Sick Industrial Units: The cotton
industry faces constant
threat of sickness and consequent
closure, because of
(i) uncertainty of raw material; (ii) low productivity of machines and
labour; (iii) increasing competition from powerloom sector.
(c) Loss of Foreign Markets: The Indian cotton textile industry
has lost some of the foreign markets because of continued
increase in the cost of production.
(d) Inadequate Production: The cotton textile industry faces
inadequate production because of the lack of adequate and
unfailing power supply.
(e) Obsolete Machinery: In India most of the cotton textile mills
are working with old and obsolete machinery.
SILK INDUSTRY
India is largest silk producing country. SILK IS OBTAINED FROM SILK
WORM. Sericulture is rearing of silk worms. Four varieties are Eri,
Mulberry, tasar, and muga. Assam is famous for muga silk which is
India Monopoly.
90% silk is Mulberry.
Distribution
Karnataka is largest mulberry
silk producer. Ex Bengaluru,
mysore, Kolar
Andra Pradesh- Chitoor,
Vishakhapatnam,
Telangana- Mahibubnagar,
Karimnagar

Mineral Based Industry

Mineral means a naturally occurring
inorganic substance found in the earth
crust having its specific characteristic
properties. Ex- iron ore, etc.

Iron and Steel Industry:

Iron and steel is a basic industry and forms the backbone of
industrial development in any
country. It provides raw
material for making industrial
machinery, electrical
machinery, defence equipment,
railway tracks, railway engines.
The quantity of steel produced
and its per capita consumption
reflects the level of
industrialisation and economic
development of a country.
The setting up of the Tata Iron
and Steel Company (TISCO) at Sakchi (now in Jamshedpur) by
Jamshedji Tata in 1907.

Raw Materials: The main raw materials used in iron and steel
industry are iron ore, coal, manganese, limestone, silica, chromate,
feldspar, scrap iron, flux and fuel. Manganese is used for hardening
of steel.

Steel Making: Iron ore is always

found with some impurities like
sulphur, silica, phosphorus, lime, etc.
So the impurities have to be
removed to get pure iron ore that is
used for making steel. The following
process is used for converting iron
ore into steel:
1. Ore Reduction
2. Steel Making Furnaces
3. Rolling Mills

Large Integrated Iron and Steel Plants: An integrated steel plant is

the one in which all the processes from providing raw materials,
basic fuels, water supply, etc., to the conversion to steel, rolling, etc.,
are all done at one place.
Major Iron and Steel Plants: Steel Authority of India (SAIL) is the
largest steel making company in the Public Sector.

1. Tata Iron and Steel Company:

Tata Iron and Steel Company
(TISCO) is one of the largest
manufacturing plants in Asia.
a) Availability of Raw
Materials: Iron Ore from
Gurumahisani, Manganese
from Joda, limestone,
dolomite and fire-clay from
Sundargrah and coal from
Jharia.
b) Water Supply: The two rivers Kharkai and Subarnarekha never run
dry throughout the year, supply a continuous stream of water for
cooling purposes.
c) Labour Force: The labour force for the plant is recruited from the
densely populated valley of Ganga.
Products: It produces high grade carbon steel used in structural
fittings and tin plates.

2. BHILAI IRON AND STEEL PLANT

Bhilai Steel Plant was established at Bhilai in 1953 in collaboration
with the (then) USSR Government.
1. Location: It is located in Durg district of Chhattisgarh.
2. Availability of Raw Materials: The plant gets its raw material from
the following sources: iron ore are supplied from Dalli Rajhara
mines. Limestone is drawn from Nandini. Manganese is obtained
from the neighbouring district of Balaghat.
3. Power Supply: Coal is obtained from Bokaro, Kargati, and Jharia
fields in Jharkhand and Korba in Chhattisgarh. The main source of
power is the thermal station at Korba.
4. Water Supply: The plant gets water from a system of reservoirs at
Tendula.
5. Transport Facility: The Bhilai Steel Plant lies on the Mumbai-
Nagpur-Kolkata rail line which links the plant to the major markets.
6. Labour Force: The labour for the plant is recruited from the
nearby states of Bihar, Jharkhand and Madhya Pradesh.

3. Rourkela Steel Plant:

The Rourkela Steel Plant was built with technical cooperation from
the German firm.
Krupps and Demag
in 1959.
a) Location: The
plant is located in
the Sundargarh
district.
b) Raw Materials:
Manganese is
obtained from
Baramad.
c) Power Supply: Coal is obtained from Jharia, Talcher and Korba
fields and electricity from Hirakund Project.
d) Water is obtained from the Mandira dam across the Sankha river
and also from Mahanadi.
e) Transport Facilities: Rourkela is situated on the Kolkata-Nagpur
rail line. This provides easy access to raw material producing areas
and also to the markets.

4. VISAKHAPATNAM STEEL PLANT

1. Location: It is the first shore-based steel plant in India located at
the port city of Visakhapatnam in Andhra Pradesh.
2. Raw Materials: The plant obtains iron ore from Bailadila in
Chhattisgarh. It gets limestone, dolomite and manganese from the
mines of Andhra Pradesh and Odisha.
3. Power Supply: It is well connected with the coalfields of the
Damodar Valley.

Mini Steel Plants: These plants generally use ferrous scrap, pig iron
or sponge iron as their raw material. They work through electric
furnaces and have a capacity from 10,000 tonnes to about 5 lakh
tonnes per year.

Problems of Iron and Steel Industry:

a) Capital Intensive
b) Obsolete Technology
c) Limited Availability of Coking Coal
d) Sick Industries
e) Control of Prices

Electronics:
1. The Indian Telephone Industries (ITI):
It was the first government undertaking to
be set up after Independence near Bengaluru
in 1950. It produces equipment to meet the
needs of the post and telegraph
departments, railways, defence.

2. The Electronics Corporation of

India Ltd. (ECIL):
It is an indigenous unit. It was set
up in Hyderabad in 1970. It has a
well-equipped laboratory.
3. The Bharat Electronics Ltd. (BEL)
It was set up in the Public Sector in 1956 in Bengaluru
to fulfil the needs of the electronics
in defence services. It also caters to
the needs of the All-India Radio
and the Meteorological
Department.

Space Technology: The

Indian Space Research
Organisation (ISRO) at
Bengaluru. INSAT and
APPLE are India’s
indigenously built
Satellites. The Satellite
launching Station at Srihari
Kota and National Remote
Sensing Agency at
Hyderabad

Software Industry
The software industry has emerged as one of the fastest growing
sectors in electronics in India. The Department of Electronics has
adopted a proactive role to further enhance competitiveness of India
in Information Technology (IT) and has initiated a number of
programmes for manpower development, quality upgradation and
stimulation of software engineering and research.
India has achieved capability of designing and building
supercomputers. Bengaluru and Hyderabad are leading centres of
software industries.
Television and Audio
The television and audio industries bloomed in the 1990s as a result
of the progress made by the electronics industry. The audio
industry can be broadly classified as mono players, stereo players,
midi systems, CD based systems and car audio systems. The main
centres of production are Mumbai, Kolkata, Chennai and Pune.

Petrochemical Industry:
Petrochemicals are important organic chemicals, derived from
petroleum products, LPG
and coal.
In particular, this
industry produces:
(i) Fertilizers and
insecticides.
(ii) Resins, adhesives for
industries.
(iii) Plastic sheets, plastic
foam, bowls and
baskets, paints and
furniture coverings for household items.
(iv) Carbon black is used in printing inks, paints, carbon paper and
gramophone records.

Advantages of Petrochemical Products:

Cost effective and economically stable.
Natural Material Petrochemical
Product
1. Leather Plastic, chappals,
footwear and synthetic
footwear
2. Natural Rubber Synthetic rubber
3. Jute fibre Synthetic fibre
4. Steel pipes PVC
5. Steel Utensils Plasticware /
containers
6. Cloth and Jute Polythene bags
bags

Production Units:
1. Herdillia Chemicals Ltd.- Chennai
2. National Organic Chemicals Industries Ltd. - Mumbai
3. Petrofils Cooperative Limited- Vadodara & Naldhari
4. The Reliance Industries - Hazira
5. The Indian Oil Corporation- Panipat