101

CHAPTER-IV MEASURMENT OF INDUSTRIAL ACTIVITY

Decentralization of industries from Mumbai Metropolitan Region is the main factor of development of industries in district. After the establishment of M.I.D.Cs in all the talukas of , excluding number of industries has increased. In Thane district, highest number of small, medium and large scale industries are located in followed by Pal ghar taluka. Small scale units are also developing in lawhar taluka. Tribal population is one of the important reason for poor development of industries in Jawhar,Wada, Shahapur and talukas. Small, medium and large scale industries are well developed in , , and talukas. Large employment is generated by the development of manufacturing activity in Thane district. Employment engaged in small scale industries is more than the employment in large scale industries. t-:Jearly tifty per cent employment of manufacturing sector is engaged in Thane taluka. But due to small number of established industries in Jawhar taluka employment generated is only 185. Outside M.M.R., taluka is industrially well developed. Hence about 22 % of the total employment of Thane district is generated in . Large number of employment is engaged in industrial activity in Thane

distlict. v

Alexander, J. (1958) and Linge, G.J.R. (1960) used the techniquc to find out the concentration and dispersal of manufacturing activities. To measure the concentration, distribution and . dispersal' of any phenomenon different methods and techniques arc uscd . such as Location Quotient, Lorenz curve and Gini's Coefficient etc (Khan, 1998). 4.1 Location Quotient (L.Q.) General concentration of enterprise can be quantified with the help of L.Q. or by Coeff. of localization. This technique was primarily devised in late forties to study industrial location. In the study of distribution of industrial phenomenon we would like to identify areas where particular enterprise is concentrated, where its presence is marginal and where 102

it is absent. Florence, (1948) compares a region's share of some enterprise with its share of some aggregate.

Ec. Tn ENTc Where, EC - Area of the enterprise in a county/ State EN - National area of the enterprise V'-l(\1\ . '\ \ TC - Total area of specified enterprise in a county. TN - National area of the specified enterprise.

The concentration of index is the ratio of ratios. The concept of concentration enables one to compare and associate enterprise distribution on a uniform scale. With the help of this method we can arrive at meaningful generalization in the industrial geography of an area. We may be able to identify the enterprises which are highly localized and those which are widely spread It is also important to examine the changes of pattern of concentration over a period of time. L.Q. 1 means the pattern is similar in the component unit and the region. If the L.Q. is > 1 it indicates higher concentration as compared to region and L.Q. < 1 indicates less of concentration in relation to region as a whole. Location Quotients for SSI units in Thane district are calculated and they are 0.91 to 1.04. It indicates that concentration of industrial units in a taluka is more or less equal in proportion with concentration in the district (Table No: 4.1, Fig No: 4.1). Location Quotients- LSI units in thane district is ranging from 0.13 to 3.70. It indicates that the concentration of industrial units of LSI at taluka and district level is not in same proportion. Concentration in (3.70) is the highest bu~ it is very low in (0.13) as compared to the district (Table No: 4.2, Fig No: 4.2). 4.2 Manufacturing Intensity in Thane District Once an industry or Industries are setup at any particular place certain by-product industries come up and industrial landscape is formed. In other words manufacturing regions af' originatef. All the manufacturing regions do not have same manufacturing intensity. To measure the level of manufacturing or industrialization several methods have 103

Table No: 4.1

LOCATION QUOTIENT - SSI UN1TS THANE DISTRICT (2002).

1 SR TALUKAS NO OF UN1TS L.Q. NO. T ALUKA (SSI) TOTAL I I 1 Thane 3218 3404 0.98 2 Kalyan 708 723 1.0 I 3 Ulhasnagar 914 938 1.03 4 Bhiwandi 149 163 0.95 , 5 Vasai 2065 2075 1.03 6 Palghar 31 96 33 33 0.994 7 332 33 6 l.03 8 Shahapur 326 33 5 1.0 I 9 Murbad 23 6 270 I 0.91 10 Wada 303 315 0.999 11 Jawhar 20 20 1.04 12 Mokhada ------13 Ta1asari 102 106 0.999 Total 11569 1201 9

Source: Compiled by Author. 104

LOCATION QUOTIENT SSI . THANE DISTRICT (2002).

~ ~. . . .

c~-~ .: MOKH[ADA ~H--+--t---1H-+~-+-~U-L f>

...... ~ . . ~~f---l-+-+-+-r!--

. PALGHAR · . ' . .. . . • . '? . . · .., · W,\ DA . ~ . ------~ .• r;- ·l ·~··, ~ j· . . . )~ • .•.•. ~.. -~-=-=-=------.{- I"'-t-+-+--+-- : ~ ... ..(,/./~ .;.. , SHAHAPUR "'" • (.4\ - I rr~~4-4-~' • " ~------~~~~ • , , ' ). ~ ;J .- \ ' -...... ~

~+-+-+-..j.I' ,BHIWAND I • ,...~~'\. --=~\------f"r."..... J" .".. ' ,.. ~ <' I / C;../ "1.../"\ "...... -./'--J' =vJ' , • .. { J • .. • .. • • • • ..

• ,':. , • ".c,·..'., .. - KALYAN I - ...... • THANE', ( .. ,,: f ; MURBAD .'...• ~ ,[1; 1l1Trrrr·-r; . . .~.. . :.r' INDEX · ~ULIiA.S ~ . - t:,.....,. • ;'''~,' ;1 NAGAf', JL ._. . EJ 0.90 - 1.00. ~--- N 8 1.01-1.02 o 10 KM t urn 1.02 - 1.03 EE 1.03 -1.04

FIG NO : 4.1 105

Table No : 4.2

LOCATION QUOTIENT - LSI UNITS THANE DISTRICT (2002).

SR TALUKAS NOOF UNITS L.Q. NO. TALUKA (LSI) TOTAL

I Thane 184 3404 1.46 2 Kalyan 15 723 0.56 3 Ulhasnagar 24 938 0.69 4 Bhiwandi 14 163 2.32 5 Yasai 10 2075 0.13 I 6 Palghar I 137 3333 1.11 - 7 Dahanu 4 336 0.56

8 Shahapllr I 9 335 0.32 9 Murbad 34 270 3.70 10 Wada 12 315 1.02

11 Jawhar -- 20 -~

12 Mokhada -- ~- -~ 13 4 106 1.02 r--- - Total 447 12016

Source: Compiled by Author . 106

LOCATION QUOTIENT lSI THANE DISTRICf (2002).

• . JAWHAR

".. ' .., " .... : nTfTUl '\) ,J '_: . t. PALG~ 2. ~ , .... , ,'" ,J_. ~ __ J • I : "ltm] ' j:IT ,-. ' ~ ' . • • . j ~~.. WADA .'. .. .) " . . . . ~ .SHAHAPUR . . ,... . >

INDEX

[J 0.10 - 0.50 N . 8 0.51 -1.00

1.01 -1.50 t IIill 0 10 KM '-----.J ill 1.51 - 2.50 ~ > 3.50

FIG NO : 4.2 107

been used. Richard Hart Shome (1934), Helen M. Strong (1937), Geer, Wright (1938), Thompson, J (!955) C.FJones (1973), used different variables for the measurement (MandaI, B.1978). In case of Thane district two types of data. are used. I] Number of Registered Factories and 2] Persons employed in manufacturing. Hence the intensity of manufacturing has been calculated at Taluka level on the basis of number of registered factories and employment as mentioned above. Manufacturing intensity has been calculated by the formula: M.l. = X+ Y where, 2 No offactories in a Taluka. X = ------X 100 No of factories in Thane District. No of persons employed in manufacturing in a Taluka y=

No of persons employed in manufacturing in the District. Manufacturing intensity is highest (14.36) in Thane taluka.(Table No: 4.5) Metal, textile and chemical units are in large number; their proportion ranges from 18.50% to 20.86%. More than 50% engineering, metal and chemical industries are located in Thane taluka. M.I.D.C. has established large industrial areas like Wagle and T.T.C. in Thane taluka. Hence manufacturing intensity in Thane taluka is more than other talukas. Palghar taluka also has a high level of manufacturing intensity where the proportion. of plastic, chemical, textile and other industries is remarkable. Another important taluka is Vasai, which has high manufacturing intensity, (8.69). Development of co-operative industrial estates in Vasai taluka helped to increase manufacturing intensity of Vasai taluka. There are more than 2,000 industrial units employing 14,000 workers. But there are some talukas - like Jawhar, Wada, Talasari, Shahapur and Murbad where manufacturing intensity is less than two. These are the tribal talukas and away from Mumbai-Thane industrial and commercial centers which are not easily accessible. Bhiwandi, Ulhasnagar and Kalyan talukas are industrially developed and manufacturing intensity is medium. Manufacturing intensity was also medium in in 1994, but due to closing of cotton textiles in Mumbai and closing of power-looms in Bhiwandi, the manufacturing intensity declined 108

Table No: 4.3

THANE DISTRICT - SSI AND LSI UNITS (2002).

SRNO. TALUKAS NOOFUNlTS S.S.! LSI TOTAL I I Thane 3,2 J 8 J84 .3 ,404 J 2 Kalyan 708 15 723 3 Ulhasnagar 914 24 938 I 4 Bhiwandi 149 14 163 5 Vasai 2,065 2,075

--t- -~- _._-_ . -- 10 --I - 6 -j -- PaJgl1~ - I 3,196 3,333 I 137 I 7 D aha nu 332 4 136- - t 1 ! 8 Shahapur 326 9 I 335 I 1 j I 9 Murbad 236 34 270 I 10 Wada I 303 12 I 315 11 lawhar 20 i -- 20 :

12 Mokhada -- 1 -- -- I i 13 Talasari 102 ! 4 106 ! I Total 11,569 1 447 12,OJ6 I -

Source: D.l.e., Thane. 109

Table No: 4.4

THANE DISTRICT - EMPLOYMENT IN SSI AND LSI (2002).

TALUKAS EMPLOYMENT S.S.! L.S.I TOTAL Thane 32,955 46,180 89,135

I 2 Kalyan 6,643 7,156 13,799 , -,- I 3 Ulhasnagar I 8,575 3,422 11,997 I I f---- ~ I 4 Bhiwandi 1,400 1,117 2,517

- -+ 5 Vasai 14375 463 14,838 I ._-_.. t-- i 6 Palghar 29,990 I 9,799 I 39J89/ _____...l...--- i C I I 7 Dahanu 3,115 1)56 I_ 4,471 ~-- I 8 ShahapUf 3,061 1,690 4,751 --_. .- I I 9 M~frb~-----I--- 2,214 4,175 6,389 -+---- 10 ; Wada i 2,844 i 2,387 5,23 I If-----r----M-J:-:-;~-:d-ra- II I ---r-l~r--+--1-8-5---j-- I 12 I -- -- i 13 I Talasari 106 362 468 Total 1,08,542 ~--7 8,107 1,86,649 I I .-.l~_

Source: District Industrial Centre, Thane. 110

Table No: 4_5 MANUFACTURING INTENSITY IN THANE DISTRICT(2002).

I Sr Taluka Industrial Units I Employment Manufacturing i No I (Number) Intensity i 1 I Thane 3,404 79, 135 14.36 L---~------__------r------~------~ i 2 Kalyan 723 13999 3.03 : 3 Ulhasnagar 938 11 ,977 3.93 ! r---' ~------r------~------+------~ : 4 Bhiwandi 163 2517 0.66 i i 5 I Vasa; 2,075 14,838 8.69 ~r-_._'a_\V_·h_;~_· _· _~I· _____2 _0______~I_ -____18 _5__ -_- __- -+i_ -_-_-_- -_O_~O_9_-- _-_-- ~~1

~ 7 Palghar J 3,333 39,789 .l 13.96 .I : 8, W

Source: D.l.e. Thane III

THANE DISTRlCf MANUF ACfURING INTENSITY, (2002).

I . cI ~f{ .e!. -:!' \. L. k.,~~~:,! y" If

I ..... '' t,f "

~

v

.Q . ' , ;,-- , .r-• F;il L . l' V- H , ].' I ~ .~ - f--i. ~ , )J ".M 0 IA l -1'- •~ _ . , .. -...: t-----fi. ~ l- f l'l ,~ " \.

N jR , / It' ~ .< "': . c:~ ~.w ,-p '- , .' J I . .ti::..7~ \. ) II ' , 'l Vl " . ,- ,'"" \ I.. Ji. L\ . IJI ...... ,. jt , n ... IV I r< r~Pl , r-" ,,- \ , 'V T .\-IANE: ... , , "-"" ~ , ''''A 1.00 F.R '" .:.... .-...... ( -&W'\.;~ <.; ~ INDEX i"[\1 ~ N o Nfl [ill < 1.00 f 0 10 KM m 1 - 4,00 <---..L-.J ,m > 4.00

FIG NO : 4.3 112

to less than one. These industrial regIOns are very close to Thane industrial regIOn.

Railways and highv.~ ays are the important infrastructure facilities in Kalyan, Ulhasnagar and Bhiwandi talukas (Table No: 4.4 and Fig No: 4.3). Hemalata Rao (1985). has analyzed industrial development of a region applying factor analysis using eight variables in different regions. Hina Sindu (1995) has also worked on industrial development in the backward region of Gujarat. 4.3. Small, Medium and Large scale Industries SmaJJ scale industries have a significant role to play in achieving an increase in industrial production, generation of additional employment, reduction in regional imbalances, development of local resources and promotion of exports. Small scale industries have the potential for achieving these goals at a relatively lower capital cost. The employment generation capacity of small scale industries is so great that in India an investment of Rs 1 lakh in plant and machinery in small scale industry can provide employment to 21-25 persons while in large scale industries the same amount of investment provide employment to only 4 persons (Sharma, 1989). MIDC has built up 1 I industrial areas for the development of Small, Medium and Large scale Industries.

Small Scale Industries (SSI) are those units 1Il which capital investment in machinery for the establishment of small scale lillit was up to Rs. 35 lakhs according to industrial law, 1951. After that the limit was increased up to Rs. 60 lakhs and in 2002 it was increased up to Rs. 1 Crore. The industries, in which the capital investment is less than Rs. 1 crore, are not subsidiary and not under the control of other industries are known as small scale industries (SSI). According to industrial law, 1951, those industries which are having industrial license, intend letter and capital investment of more than Rs 60 lakhs are large scale industries (LSI).

Complimentary/ auxiliary industries are units ill which capital investment ill machineries is less than Rs. 15 lakhs and 50 per cent of annual produce is utilized by other large or small scale industries. 113

Table No: 4.6

TYPES OF INDUSTRIES (SS I) IN THANE DISTRICT, (2002).

I Sr I Category of Industry I Numberoft'\i Employme nt i Invesmlent i Production I No I I Uni ts '?O~ ~ i (Rs Ln Lakhs) ! (Rs LnLakh s) I 102 I 1271 i 12 92 15 ! 25543 .00 I Forest Based 1-07 ' 95 8 ' 73750 ! 3250.00 i - ! ! i 3 Mineral Based 42 ; 371 I 111 699 i 16303 I, I i , ; I [4- Food and Beverages 201 : 25 14 , 12 931 6.92 I 132290.00 i i 5 Textile 713 I; ! 6604 i 1790 1271 : 4835046.00 1 , : 6 Leather 11 2 12243 : 71094 i 74 J 20.00 \; I I I I 7 Rubber 298 ! 5492 : 2204.94 i 100234.00 I , I 8 Plast/(; 13 66 ! 10576 ! 28859.24 ! 1714879.00 i I i ' 9 Chemical Based I 2313 J i 15953 I 18 707 00 I 206021.00 - - - i - -- 10 Metal Eng Based I 1656 1-6078 ! 2558 1.4 T 91877000- I ! 614- 3167 II Electric I I 463232 I 596711.00 12 Electronic 360 6232 I 1872.92 ! 20418.00 i I 13 Non Metal 330 4045 2506.33 I 1235200 14 Other 3355 43062 22795832 4678208.00 Total 1 J 569 108542 62451045 133341145.0

Source: D.LC. Thane 114

Export industries are those units having machinery worth Rs. 75 lakhs of capital investment and after establishment, at the end of third year guarantee are given to export 30 per cent of the total annual tum over (Udyog Sadhana, 2000). Manufacture of machinery, machine tools and parts of machinery taken together with the iron and steel basic industry and metal products are the most important and biggest group of industries in the district and includes manufacture of boilers, refrigerators, industrial machinery for food, textile, chemical, paper and cement industries. The raw materials required by these factories includes pig iron, coke, coal, steel plates, sheet metal, stainless steel wire, rods which are available at Mwnbai, Calcutta and Rourkela. Stainless steel is imported from Japan, USA, England and West Germany. The products like wire nails, beeds, buses and bicycles are exported to USA, Dubai, Bangladesh, Tanzania, Naigeria, Iran, Egypt Srilanka, Saudi Arabia, Australia etc (Small Industries Service Institute, 2000-01). Basic industrial chemicals including fertilizers, vegetables and animal oils, fats, manufacture of paints, varnishes and miscellaneous chemical products which can be classified as chemicals and chemical products is an important industry in Thane district. These units are mainly concentrated in the Trans- Thane Creek (TIC) and Belapur Road Industrial area. The medium and large scale industries manufacturing chemicals and chemical products are Pfizer Lubrizol India Ltd, Polyolefins Industries Ltd, Nocil Herdellia Chemicals Ltd, BASF, Star Chemicals etc. The chemical units are also found in other parts of the district viz Wagle Industrial area, Pokhran Road, Ambemath, , Badalapur and Tarapur. Raw material required by these industries is procured from Mumbai, Madhya Pradesh, Uttar Pradesh, Andhra Pradesh, Gujrat, Assam, Kerala and West Bengal. Some raw materials are imported from Germany and Japan. Some fmished products are exported to Bangkok, Thailand, Japan, Gennany, U.K., USA, Poland, Belgium, Italy and Dubai. There is cotton as well as non-cotton power looms industries in the district. They are mainly situated at Bhiwandi, Thane and Kalyan. For centuries Bhiwandi has been known for its hand loom industry. The rapid industrialization in the country compelled hand loom weavers to replace their hand looms by power looms. Proximity to Mumbai, all India market for raw material yam, availability of accessories offered special advantages to 115 .'#" "-. the power looms in Bhiwandi. The raw materials required by these industries are cotton, yam, art silk, Indian wool, rayon, nylon, polyester yam, synthetic yam, dye chemicals, bleaching chemicals, soda ash, caustic soda, starches etc. Most of the raw materials are available in our country. Machinery, spare parts are generally imported from Germany, USA and Japan. These industries also export their products to Middle East, USA, U.K., Germany, Switzerland, Austria etc. Food industries include grain mill products, bakery products, cocoa, chocolates and sugar confectionary, salt, ice, slaughtering preparation and preservation of meat, dairy products, canning and preservation of fruits, vegetables and fishes etc. are developed in the district. Raptakos, Brett and Co, Pfizer Ltd, Cadbury and Fry India Ltd. Which produce modified milk food and high protein food are some of the large and medium scale industries in the district Share of food industries is not more than five per cent. Wood and wooden products include plywood and veneer, wooden boxes, barrels, bamboo, cane baskets, bobbins industrial fixtures, cork and cork products which are manufactured in Thane district. The raw materials required for these units are indigenously available. Wood and splints are brought from Mysore and Kerala, card board from Gujrat and other raw materials from Mumbai. The availability of timber from the neighboring areas was one of the most important reasons for the localization of the industry in the district. Most of the original machines were imported but latest additions are indigenously fabricated by various firms. The bulk of the production is mainly for home consumption in , Gujrat, Rajasthan, Madhya Pradesh and Kamataka. Electronic industry in India has achieved a remarkable rate of growth. The availability of a large pool of highly educated technical manpower, emphasis placed on up gradation of technology and creation of appropriate infrastructure are the distinct advantages which India has always enjoyed in electronic sector. A further impetus to the electronic sector has been given through the policy of encouraging the setting up of Electronic Hardware Technology Park (EHTP) and Software Technology Parks. These Parks are duty free areas and units located there are eligible to import all their operation related requirements free of duty. International InfoTech Park at TTC has been designed with an infrastructure for the need of technology driven companies in electronics, information technology, telecommunication and related industries. ~ park provides 80 116

I. hectares of ultramodern, state of the art technological surroundings with 600000 sq ft of build up area in a beautifully designed building which has acquired ISO 9002 certification for its quality standards. There is scope especially in the area of digital , TV, Computer hard disc monitors, printers, medical electronics, CAD/CAM integrated circuits, photo voltaic cells and electronic components. With SEEPZ and other institutions like MIDC, MEL TRON (Maharashtra Electronics Corporation Ltd) playing a lead role in providing incentives to the electronic sector the opportunities are bound to expand. The share of electronic industry in Thane district is approximately one per cent of number of units and employment. Specifically the future is likely to see a growth in the importance of value added services like franchised pay phones, voice mail, e-mail, cellular telephones, infonnation services and video services etc. 4.4 Spatial distribution of manufacturing industries

Like Maharashtra, Thane district also shows uneven distnbution of manufacturing I industries. For the administrative purpose, Thane district is divided into thirteen talukas. In l 2002 two new talukas Ambernath and Vikramgadh were carved out of Ulhasnagar and Jawhar talukas respectively. Talukas nearer to Mumbai are industrially well developed; some talukas are industrially developing, while some ITl the tribal region are underdeveloped. On the west coast of Thane district many industrial centers have developed due to easy access to Mllmbai . Mllmbai-Ahmedabad high way (NH-8) and Western Railway connecting Vasai, , Mira, Palghar and Tarapur (). To the south, the manufacturing centers are located close to the Southern and Central Railway routes. This has boosted chemical industries near Kalwa, Dombivli, and Ambemath and Badalapur centers. The big factories manufacturing chemicals and chemical products in this area are pfizer, Lubrizol India Ltd, BASF Ltd, Star Chemicals, and Phoenix Chemical Works. About 30 engineering units are more prominent as reg_ards production; capital investment and employment in the district, some of them are Mukund Iron and Steel Works Ltd, Voltas Ltd, Garlic Engineering, National Rayon Corporation Ltd, Ion Exchange, BASF India Ltd, Hennan Mohatta (India) Pvt Ltd, Dandekar Machine Works,

] X.Engineering, W.G.Forge and Allied Industries Ltd. Talukas situated on the western coast (Pal ghar and Vasa i) and southern part of the district (Thane, Kalyan and Ulhasnagar) are industrially well developed. Seventy five per 117

\ - cent of the registered small-scale factories are concentrated in this area. Remaining developing tal uk as viz Dahanu, Shahapur, Wada and Murbad account about 10 per cent of the registered factories and capital investment. Bhiwandi is also industrially developed region of M.M.R. Bhiwandi Taluka accounted for 9.5 per cent of industrial units in 1996 but that percentage declined and now it has only 1.29 per cent of industrial units of Thane district (Table No: 4.4). Special efforts are required for setting up industrial units in Jawhar and Talasari talukas. This region is away from Mumbai and Thane and infrastructure is not well developed. Tribal regions of Jawhar, Mokhada, Talasari, Wada and Murbad have been identified for making concrete efforts providing necessary institutional network to encourage industrialization. Mokhada is the only taluka which does not have a single industrial unit. In order to achieve dispersal of industries outside Mwnbai- Thane belt, the Government of Maharashtra has been implementing a package of incentives to industrial units in developing regions of the state. Since 1964. Under this scheme, Thane district is divided in four groups such as A., B, C and D. Group A includes talukas like Thane, Bhiwandi, Kalyan, Ulhasnagar and Vasai (within MMR), Group C includes Pal ghar, Dallanu, Wada, Shahapur and Murbad (Outside BMR) and Group 0 includes Talasari, Jawhar, Mokhada, Shahapur and Wada talukas. Metropolitan area and developed areas are covered under group ' A' where no incentives are provided. Wada, Shahapur, Vikramgadh, Vangani, Jawhar, Suryamal and Mokhada have been selected as growth centers for providing infrastructure facilities like telecommunication, banking, transport and housing facilities. In the southeastern part of the district, Murbad taluka head quarter is developed as a M.I.D.C industrial area. Number of registered industrial unit and capital investment in this area are about two per cent of the total Thane district. Agricultural land in industrially developed talukas is converted into non-agricultural land. Most of the infrastructural activities are concentrated in this converted land. The converted non-ab'ficultural land is utilized for industrial, residential and commercial activities. In Palghar taluka, ab'ficultural land is converted into non-agricultural land for industrial activities on a large scale. 118

.'~ . ---.

Tarapur industrial area and Palghar co-operative industrial settlement are developed in Palghar taluka. (Table No: 4.3). Mumbai-Agra National Highway (NH-3) passes through Thane- Bhiwandi and Shahapur talukas. Bhiwandi is an important power 100m center. is more important as the source of water to Mumbai and Thane. Industrial units are not allowed along the banks of river Vaitama and Tansa. Near river Tansa there is scope for non­ polluting industries especially engineering and electronics. More than hundred villages are enlisted not to develop the polluting industries. (Action Plan, 1983-1988). and distance of about 25 Ian from the border of taluka are declared as reserved area. Indian forest, Wildlife and Environment Conservation Departments announced a policy in 1991. Accordingly Dahanu taluka and nearby area is declared as 'Green Zone' in which non-polluting industries can be established with the prier permission of DIC. Fifteen non-polluting units are listed in the green zone. Supreme Court has refused to give permission for localization of any small-scale units in this region. There is a special policy for localization of non-polluting high tech and higll value added industries in M.M.R. About 10 types of industries are included in this policy (Audyogic Vikas Arakhada, 1996-97 to 2000-200 I). 4.5 Structure of Industries ) The composition of industries in Thane district has not undergone any considerable change in the last four decades. Here, the units grouped in to fourteen major types. ( Chemical, engineering, textile and plastic units account for more than 75 per cent of the total units, capital investment and employment in the district. Chemical industrial units are mainly located in T.T.C. (Thane-Belapur belt), Dombivli, Arnbernath, Badalapur and Tarapur. Engineering lmits are concentrated in Thane, Dombivli and Tarapur-Palghar region. Textile and plastic industries have developed in Kalyan! Dombivli, Murbad and Bhiwandi area. They account for about 30 per cent of the industrial units in Thane district. 1n last five years electronic lmits are also developing and their share in number of units and employment is increasing. These units are localized in T.T.C. and Dombivli M.I.D.C. areas. They account for about 10 per cent of the total units. Leather, non-metal, agro-based, mineral-based and forest-based industrial units are less significant. They are mainly developed where raw material is abundantly available. Large-scale chemical, engineering, 119

plastic and. textile units have developed in different industrial areas of Thane, Kalyan, Palghar and Ulhasnagar. M.I.D.C. has encouraged the establishment of leather and wool knitting industries but their share is limited (Table No: 4.4). 4.6 Regional Imbalance 4.6.1 SSI Units in Thane District (Categories) There are many small-scale industrial units localized in Thane district. These units are classified in to fourteen categories. According to the type of industries number of units is calculated. Lorenz curve is drawn to understand the dispersion of different types of industries (Table No: 4.7, Fig No: 4.4). The curve is not away from diagonal on the both ends but the middle portion is more shifted from diagonal. Gini coefficient (0.56) indicates moderate dispersion and inequality. Metal engineering, textile and chemical industries contributed very high share but forest, Agro-based, food, beverage industries accouni for negligible share (less than 1 %) in the total industrial units in Thane district. In the electrical and electronic industry group considerable progress has been observed in recent years due to development of sophisticated industries. This industry has a high degree of concentration (8.76%) in T.T.C. area due to formation of Millennium Business Park. One could find that most of the industrial units are concentrated in and around Thane city and adjoining area. This type of development is also found in T elangana region of Andhra Pradesh. Like Thane, Hydrabad is the main industrial center in Telangana where industrial units are concentrated. They have contributed to the fonnation of the industrial complex, generating magnetic and agglomerative pull to attract new industrial units ( Reddy and Rao, 1993). 4.6.2 Employment in SSI Units in Thane District Different types of industries are located in Thane district. A superficial glance at the small-scale sector shows that it covers a wide range of 7500 products (Sathe, 2002). Manufacturing as a whole represents a number of activities while labour is an essential part of a11 production activities (Chakravarty, 2003). Heterogeneity is the main reason of unequal distribution of small-scale industries. Lorenz curve for the employment in SSI indicates high inequality. There is vast difference in number of factory employment in metal, textile, chemical, forest-based, agro-based and mineral-based industries. Three types of industries contribute more than 50 % share in 120

.y ---

employment (Table No: 4.7). From this it is obvious that these industries are labour intensive and are playing a vital role in the industrial development. (Johnson Merrill, 1985). These three types of industries are localized in Thane, Pal ghar , Kalyan and Ulhasnagar talukas. Availability of infrastructural facilities near Thane and Mumbai is the main reason for the concentration of industrial employment. In Thane district forest-based industries have negligible share (0.8 %) in the total industrial employment. As such mineral-based industries are not playing substantial role in the economic development of the region. Employment share of agro-based industries is only l.7 per cent (Table No: 4.8). Thane district is very poor in mineral wealth (Chapter-II). Agriculture is the main activity in rural area and rice, varai and chikku are the main agricultural products in the district and hence agro-based industriallmits are not well developed. 4.6.3 Distribution of Capital Im'estment To understand the nature of distribution and dispersion of capital investment Lorenz curve is drawn. The curve is situated away from the diag()()al line . It indicates that the distribution of capital investment is uneven. Gini coefficient for capital investment is 0.59. It is less than the coefficient for industrial units and employment. But it is also more than 0_50. It indicates a relatively moderate inequality. Highest capital investment (28.58%) is found in Thane taluka followed by Kalyan (26.2%) and Palghar (25.48%). Mokhada is the only taluka without any industrial activity and no capital investment in manufacturing activity. But other tribal areas like Shahapur, Talasari, Dahanu and Jawhar talukas account for 2 % of capital investment of Thane district (Table No: 4.9, Fig No: 4.6). 4.6.4 Value of Production in SSI Units in Thane district Output (Rs in Lakhs) from each category of industries is different and it varies a lot (Table No: 4.10). To measure the dispersion Lorenz curve is dra~,m (Fig No: 4.7).Shape of the curve indicates that difference between the first rank and second rank production is very large therefore dispersion is more. The curve is away from the equal distributional line i.e. diagonal. Gini coefficient is more than 0.75. It indicates that there is higher inequality. We can observe that cumulative percentage output from 4th rank to 14th rank is increasing steadily. There is negligible difference in the output of these categories of 121

Table No: 4.7

S.S.l. UNITS IN THANE DISTRICT, 2002 ..

I SR CATEC.rORY OF NO OF TNDUSTRJAL % CUMMULATNE % i I i NO. INDUSTRY UNITS ) 1 I Other 3355 28.99 28.99 ----- I 23 13 i . 2 ~emical I 19.99 48.98 ~3 I Engineering 1656 14.31 63.29 , I 4 I Plastic 1366 I 11.81 75.10 5 I Textile 713 I 6.16 81.26 i t---- ! i 6 Electric 614 5.31 86.57 -'-- I, 7 Electronic I 360 3.11 89.68 8 Non Metal 330 2.85 92.53 I I I ! 1 9 I Rubber 298 2.57 95.10 I i I Food and 201 1.74 96.84 no! I I I I Beverages I ! I II Leather 112 0.97 97.81 I 12 Forest Based 107 0.93 98.74

I - - -- ,, ------.------,. - . ------. ------~------~.------I JJ Agro Based 102 0.89 99.63 ~ ! 14 Mineral Based 42 0.37 - 100 I Total ) 1569 100

Source: D. Lc., Thane 122

Table No 4.8

EMPLOYMENT IN S S 1 UN ITS IN THANE DISTRICT, 2002.

SR ;'\0 CATEGORY OF EMPLOYMENT % CUlvlMULA TlVE INDUSTRY % Other 43062 39.67 39.67

J Chemical i 15953 14.69 54.36 , I -' Plastic -T 10576 9.74 64. 1

i 4 Textil e 6604 6.08 70.18 5 Electronic 6632 5.74 75.92 6 Metal Based (Eng) 6078 5.6 1 81.53

/ Rubber 5492 5.06 86.59

------r ------~- ---~--~~---- 8 NOll Met(ll I 4 o45 Ii _'3 .7_i I 9031 ! ------j C) I ! Electrtc 3167 J 2.92 93 .24

i 10 Food (llld Be\.cra~cs 25 14 23 1 9555 j i -- i I 11 Leather n43 I 2.06 97.61 -- I i 127 1 1.17 I 98.78 12 Ab'TO Based I I I-"' Forest Based 958 0.88 99.66 -- 1 14 Mineral Based __J ._ " 0.34 100 Total I 108542 100 .J

Source: D.LC., Thane. EMPLOYMENT CUMMULA TIVE %

tv W ~ ~ m ~ m ~ 0 o 0 o 0 0 0 0 0 00 0 m o :;:: , "'0 I r OTHER ---t--+--t-~ -I OTHER I . +-- +- -~ TEXTILE Z en Z tv en TEXTILE U1 -i V.J ELECfRONIC (Jl ::x:: NC I ! I Oz ELECTRIC CD » ()) 0_ z METAL t-l-i m -en ELECr'RON1C ~ o l -i ;;0 ::t 1\ I I [1 n » RUBBER CD ~-i ELECIRlC CD 1\ z m N ~ \ FOOD a o FOOD 0 1 o o en I I ~-+ I I I~ I I~ N ~ -i LEATHER ~ '\ \ LEATIIER ~ 1\ ~ o FOREST N "T1 AGRO tv 1\ -i "T1 '\ Q ~ Q AGk O w FOREST w Z -'" ~ MfNERru. ~ '\ MINERAL ·· ~ \ o -+>­ v. :;:.."'"" \. '\ \. \ 124

Table No: 4.9

CAPITAL INVESTMENT IN S.S.I. UNITS IN THANE DISTRICT, 2002.

I SRNO. CATEGORY OF CAPITAL ~/o CUMMULATIVE % I !, INDUSTRY I INVESTMENT i i ! j ] Others 227958.32 i 36.50 ! 36.50 ! I i I ,I ; , 2 Textile I 179012.71 I 28.66 65.16 I I -, 3 Food and I /29316.92 ! 10.71 I 85.87 i I I I I I Beverages I , , r-\---+ .. ------~-f_------~-~-+__----- ... - .. 4 Plastic 28859.24 4.62 90.49 h--I Metal Based (Eng) 25581.4 4.09 94.58 ~I Chemical 1879788, 2 99 ~ .. --·"9-7-.5-7--~ r---~-+------~r------~-----~I------7 Electric 4632.32 0.74; 983 ) i .. -~ 8 Non Metal 2506.33 DAD I 98.71 ! 1I 9 Rubber 2204.94 0.35: 99.06 I I I I f-----+------~------~------i 10 Electronic 1872.92 I 0.29 I 99.35 I I I 11 Agrobased 1292.15 i 0.22 99.57 12 Mineral based 1116.99! 0.19 I 99.76 I . ____.. JI ----- 1-----.------.. - ..... ---.. --1------. .. ------L----··I-· .------13 Forest Based 737.50 i 0.12 I 99.88 I ...... J 14 Leather 710.94 ! 0.12 100 !I I .. _,--; Total 624510.56 100 i J I

Source: DooLe., Thane. 125 "

Table No 4.10

VALUE OF PRODUCTION ( RS IN LAKH) IN S.S.1. UNITS THANE DISTRICT, 2002

! I I I SR NO. I CATEGORY OF PRODUCTION % CUMMULATIVE % iii I l I0lDCSTRY ! CAPACITY I ~,I ' -~I, ------~I------~---~!----~ Textile 48~5046 36.27 36.27 :: I i : 2 71.36 ! ! Other i 4678208 I .15.09 I I ~ : Plastic : 17 14879 I 12 .87 I 84 .23

i 4 ! iYktall[ng) I 918770 I 690 91.13 ~ ___ ._ .. i- . __ . ..~. _~_+-.... ______+ i ----+------1 I ) : LlcctTIC i 59671 I I 4.49 ( 95.62

.- . . . . -~ - ... ""--"""'; -'" ~--~ , -+------t------j ! 6 , Chemical I 206021 1.46 97.08 ~. --. : --~ .. ·----+1------+----+------1 : 7 Food and ! 132290 099 ! 98.07

1___ _ . ... __Bc, ~ r~a ~ge~s _ ..__ : .------+---+[------1 i 8 , Rubber I 100234 0 76 I 98.83

j,....' ~~~ ~~ f)==:!=====L=e~· a--t-jl~-~-r.. --· ... ~-~~-1-ti==== =7=4=1=2 ~0 ~~~~ ~~ ~_ ++ ~_ ~~ 0=.=57==:======99=.=4====: I 10 I Agro Based I 25543 0.2 99.6

' I I I EleClr"IHc m ~ 1 --__2 ~0~4 _18-----!- ~- _O _. 1 ~6 ~-~-- +_--~_- ~99~·-...~7- 6--~-~--1- --- I 11'3- ii, Mineralha-;ed 1630~ 013 99.88 I Non Metal 12352 0.09 99.97 l..--- -t--. - ... - .. ----t------j------t------j I 14 hm:stbased 3250 0.03- 100 I Tot

Source: D.I.e., Thane. CUMMULATIVE % CUMMULATI VE % ~ ~ A ~ ~ ~ ~ ~ 0 o 0 0 0 0 0 0 0 00 0 N 0J ~ (J1 m --..J ~ ~ 0 o 0 0 0 0 0 0 0 00 0 o ~~--~--~--+--+ o () :J> TEXTfLE < OTHER "U :J> ::::j N j- - .-~ r ):10 OTHER c TEXTILE N r i rn Z PLASTfC ~o FOOD 0J :r:" m< ):10-0 PLASTfC ~ 0(1) : ~-J '-~ JI METAL l : ! Z;;o -~ mO (f; ~ +-----,--1--->" -i- -.--l I (J1 -+-i METAL \ 1 -1m ELECTRIC ~ I I I' I I ; \! 00-c '\ 1;;:Oz , 1 ~ (I)() CHEMICAL (j) () -I -1-1 -1- ...... CHEMICAL (j) [IT-[ - ~ -- -I~[ ~ , ~ ;;:0- - Cf) ELECTRI C --..J NCf) N -0 i I r I I ~ 0\ I I 1 I 1 0- -.J FOOD , _~ Z I , °c NON METAL (Xl ~ ----I- ~ ",en -L----j-- ! -- r--- 1 !'lz RUBBER (Xl I 0(1) 1 1 I 0- RUBBER ~ _ ! _J -t-~ t - i ~ LEAT HER co "'c I 1 z ELECTRON IC ;:; Z ..... ~ 1--+- -t AGRO o CJ) AGRU J: -z ~ ELECTRONIC :::: MINERAL N 1\ m

MINERAL ~ \ FOREST 0J 'T1 LEATHER ~ \ NONMETAL w ...... \ o :::l o FOREST ~ z z o o A

~L 0\ 1 127 >, - .

Table No: 411

DISTRIBUTION OF LARGE AND MEDIUM SCALE INDUSTRIES (LSI) IN THANE DISTRICT, 2002.

SR NO . TALUKAS NOOFUNITS % CUMMULA TIVE % 1 Thane 184 41.16 41. J 6 2 Paighar 137 30.65 71 .81 3 Murbad 34 7.61 79.42 4 Ulhasnagar 24 5.3 6 84 .78

5 Kalyan 15 3 . ~ 6 88 .14 6 Bhiwandi 14 3.13 91.27

- . ------._- .. ~-- - -.- - -.------_. -f-- 7 Wada 12 2. 68 93.95 8 Yasai 10 2.2 4 96 .19 9 Shahapur 9 2.03 98.22 10 Dahanu 4 0.89 99 .11 11 Talasari 4 0.89 100 Total 447 100

Source: DIC, Thane. 128

Table No: 4.] 2

EMPLOYMENT ( LSI) fN THANE DISTRICT, 2002.

SR NOOF CUMMULATIVE

0 1 NO. TALUKAS I EMPLOYMENT o/l' 10 I I Thane 46 180 59 .12 I 59.12 \ 1------_._-----.- - ~ ~. . ------._-- - ._------. --- . , 2 Palghar I 9799 ·]-i.55· t·· 71.67 I 3 Kalyan I 7 15 6 9.16 I 80.83 -- . 4 Murbad 4175 5.35 86 18 5 Uthasnagar 3422 438 90.56 I 6 Wad a 2387 3.06 9382

I 7 Shahapur 1690 2. 16 I 95.78 8 Dahanu 1356 1. 74 97.52 ! 9 Bhiwandi I 1 17 1.43 98.95 10 Vasai 463 0.59 99.54 : ] I Talasari 362 0.46 100 \

Source: DIC, Thane. 129

INDUSTRIAL UNITS (LSI) IN THANE DISTRICT, 2002.

100 90 -~-+-- --1- 80 ::R 0 70 w > 60 f- <{ ~ 50 ::J :2: 40 ~ ::J 0 30 - --t - _oj --l---;

20 I ' I 10 --r-~- I 0 0 1 2 3 4 5 6 7 8 9 10 11

t:: :::; r- '" z ;::; p:: :;:;: « "- < < VJ r ~ < ...] ~ ~ ~.... r ~ Z 3: 3: > < < :r. ~ a :2 ~ 5i ::; !- ~ ~VJ ::J FIG NO : 4. 8 EMPLOYMENT (LSI) IN THANE DISTRICT, 2002.

0 1 2 3 4 5 6 7 8 9 10 11 z ~ <1 ~ i 5\ '< ~ c:J VJ ~ ~ ~ ~ ~ . VJ 0 ' 5l < 3 < ~ ...] 1 Z ~, 3 >\ !- :2 :J VJ < < ~ ::E a :2 c...... ~ ~ co ~ \ :3 {jj ~

FIG NO : 4.9

I I 130

industries. Plastic industry accounts largest (70 .17) share of production in SSI units while the chemical indus'tries account 8.61 % production of Thane district. 4.7 Large Scale Industrial Units 4.7.1 Large Scale Industrial Units in Thane District. The specific industries, which have a greater scope in Thane district of Maharashtra, in general, will make a long list and therefore they are grouped in to J 4 categories. Lorenz curve technique is used to understand the nature of dispersion of different groups of large industrial units . The curve indicates the deviation from the line of equal distribution . Gina co-efficient (0 .63) indicates that inequality is more . The number of chemical units is maximum (34 .93%) followed by metal engineering and textile industries (Fig No: 4.10, Table No : 4.13) The basic strengths of the district are availability of fairly adequate power supply, trained manpower, maintenance facilities and adequate raw material like crude oil, natural gas and industrial alcohol. The first two large-scale oil refineries in the country were set up at Mumbai and the first two-petro chemical complexes based on Naphtha were also set up in Maharashtra. Neighborhood of Thane taluka is the ready market for chemicals as textile industries are concentrated at Mumbai . It offers good scope for the use of chemicals in processing, printing, dyeing and softening. Besides rapid development in the field of tale-communications has created oppommities for producers of polypropylene, while the development of agro based industries, electronic industries and pharmaceuticals has provided opportunity for chemical sector. The large factories manufacturing chemicals and chemical products in this area are Pfizer, Lubrizol India Ltd., PIL, Nocil , Herdillia chemicals Ltd., BASF Ltd ., Star chemicals, Standard Alkali .The products are a) so exported to UK, Kenya, Tanzania, Kuwait, lndonesia, U.S.A. , France etc. These manufacturing companies are in coUaboration with firms ill U.S .A. and European countries. Large-scale industries producing chemicals and chemical products are mainJy localized in T.T.c., Dombivli, Ambemath and Tarapur industrial areas. Central Effluent Treatment Plant (CETP) are constructed in these areas. Engineering industry is the second important type of large-scale industry in Thane district. About 65 large-scale units are located in Wagle Estate, Dombivli, Murbad and Tarapur industrial region. Textile industry accounts for nearly 15% of the industrial units and these are located in Dombivli, Kalyan, and Murbad industrial 131

areas. N.R.C., Century Rayon, B.K.Polytex, Art silk Co-Pvt Ltd, Emerald Woolen are important textile units. Electric and electronic industries are also increasing in number and they account about 10% of total industrial units in Thane district. The availability of large pool of highly educated technical manpower is · a distinct advantage, which India has always enjoyed, in electronic sector. According to new policy the government is encouraging the setting up of Electronic Hardware Technology Parks (EHTPs) and Software Technology Parks. These are duty free areas and units located are eligible to import all their operation related requirements free of duty. Mumbai is the financial and business nerve center of lndia. Thane - Belapur road (T.T.c.) is near to Mumbai's ready market for modem electronics. Forest based, agro based and mineral based large-scale units are not located in the district. 4.7.2 Employment in LSI. (Thane District) Lorenz curve drawn to understand the disparity of employment in large scale industries indicates vast difference in employment in different categories of industries J (FIg No: 4.11, Table No : 414) There is high inequality in the distribution of employment and Gini Coefficient. is 0.85. One or two types of L.S .I's have a large share in total employment. Metal engineering industries account for 67.5 % of total workers followed by chemical industries (16.21 %). Other industries are having less than 10% of share of the total workers. Large-scale engineering industries are concentrated in Thane and many of them employ more than 100 workers. Factors like a strong resource base and ready market for products due to the existence of large number of units in the automobile and machine tools sector, locational advantage - two ports and the international airport, proximity to the major markets of raw materials for engineering industry such as steel foundries, electronic components and easy availability of large number of technocrats and skilled workers have all contributed to the development of large scale engineering industries. 4.7.3 Capital Investment - LSI Lorenz curve drawn to study the dispersion of capital investment indicates that the distribution is uneven (Fig No: 4.12, Table No: 4.15). Gilli co-efficient. (0 .65) suggests a relatively higher inequality. Hjghest capital investment (44.63%) is found in chemjcal industry followed by textile, non metal and electronjc industries. A large amount of foreign 132

Tabl e No : 4.13 IND UST RI AL UN ITS (LS I) IN THANE DISTRICT ( 1996) I NUMB ER I CUMMULATIVE I I iRANK · TYPE IND USTRY I OF UNITS % % I , ~F , 1 Chemical 124 34.93 34.93 ') Metal 65 18.3 1 53.24 I .., r -) Textile 52 14.65 67.89 i I , i 4 Others 3J 930 77. 18 I I ;- 5 , Electric -) 7.04 84.23 I : 6 Plastic 15 4.23 88.45 7 Non Metal 15 4.23 92.68

8 Food and Beverages. 9 i . . 2.54 95.21 9 Rubber 7 I, 1. 97 97. 18 I o Electroni cs . I 6 I 1. 69 98.87 II Leather "( ! 0.85 99.72 I ! ! 12 Forest I I I 0.28 100 .00 I : 13 Agro Ba sed t 0 I 000 10000 1 I I 14 Mineral. I a 1 000 100 .00 I ,. -~ - I I , TOT AL '--- ~~_ 55 i I

Table No 414 EMPLO YM ENT (LS I) THA NE DISTRI CT.

! J ~ANK j INUMB ER OFI I I iTYPE or INDUSTR y I WORKERS I % I CUMMULATIVE % I ; 1 Metal and Eng 187477 6751 67.51 1- 2 I Chemica! 45007 1621 83.72 I I I 3 I Others 13602 4.90 88.62 4 Electric 8847 3.19 91 .80 5 Textile 8822 3.18 94 .98 6 Non Metal 3225 116 96.14 7 Plastic 2991 108 97.22 8 Food and Beverages 2589 0.93 98.15 9 Rubber 24 14 0.87 99.02 10 Electronic 2063 0.74 99.76 11 Leather. 586 021 99.97 ------~- . _------I--. 12 Forest. 76 0.03 100.00 13 Agro Based . 0 000 100.00 ,\4 Mineral. a 000 100.00 TOTAL 277699 CU MMULA TIVE % CUMMULA TIVE % ->. N W ~ (Jl (J) --.J ():) . ;----T s: CHEMICAL i ,i I c "'0 I---~--'-~- : --'j C/) I I' . C HErvlICAL N -r----, r METAL N -i o --+------ci---~r-...... J..! - -~ -~--~ --, ;;0 I i I I " ,- ' I I OTI-IER w -< TEXTILE w :l> s: r -+---+---+1 --1-'1 I • m ~-+--t-I ELECTRIC ~ z OTHER I C I I -- -~ ~ -1 ~-- --i ~ Z ~ . f -, -i TEXTILE (Jl -r ELECImC (Jl _L 1-- -\T-l C/) --]-i , ---1 I --1:-+ ~C/) 1 ..... r 'JJ NON fvlETAL co"::; PLASTIC (J) 1\ 1 ' -- 'JJ co - --i--, 1\ ' ~ COC/) 0) +-r---t-l '----11-++ l co en PLASTIC --.J : I ______1- ~ ~ I NON METAL --.J i ~-- ~-L-+--. i r --i--- Z I' ~ I" I , I I :l> FOOD --i FOOD Z I i I-+- I RUBBER ():) -- - -+ -- m ():) T-+ :l> RUBBER Z to -l-----+--\--+---+-- o to m o ELECTRONIC ->. I "-I---l---l----l- +-- ~ IELECTRONIC 0 -~ 1\ I I ~ ;;0 C/) LEArnER - ->. -i ~ --I 1\ () LEA1HER ->. ;;0 --i () FOREST ->. FOREST ->. 1\ N -i N 'T1 \ :::J ACRO ->. o ACRO->. Q w Z W Z MINERAL ->. o MINERAL ->. '\ o ~ ~ .j:>. ~ ...... o 134

Table No: .4.15

CAPITAL INVESTMENT (LSf) THANE DISTRICT. (1996).

CAPITAL , TYPE OF INVESTMENT i CUMMULATIVE INDUSTRY (RS IN LAKH) % I % RANK - 1 Chemical 25829.75 44.63 44.63 2 Others 6414.32 11.08 55 .71 3 Textile 6213 .82 10.74 66.45 4 Non Metal 5456.67 9.43 75.88 5 Electric 4836.76 8.36 84.24 6 Metal 3922.5 6.78 91.02 Food and 7 Beverages 2012 3.48 94.49 8 Electronic 1541.71 2.66 97 .16 9 Leather 829.16 1.43 98.59 10 Plastic 491.32 0.85 99.44 11 Rubber 316.59 0.55 99.99 12 Forest 4.5 0.01 100.00 13 Agro Based a 0.00 100.00 14 Mineral a 0.00 100.00 TOTAL 57869.1 -~ I r- CUM MULATIVE % .J. N 0J ~ (Jl (J) --J CP (0 0 I o 0 0 0 0 0 0 0 0 0 0 I o I () CHEMICAl :..... » \J OTHEJ( -4 N » TEXTILE r 0J ~ i --, - -r --r Z NON METAL < ~ -1-9"1 m ELEC1RlC en (}l s:-4 METAL m (J) z I ~-4 w FOOD _i ___ ~I _.L VI --J --1- Z RUBBER ~- r tJ -: m I FOREST -->. o N en -4 AGRO ->. ::0 ...... "Ii 0J 0 () MINERAL -4 a ~ +>- ...... N 136

investment is found in chemical units. Nobody has invested capital ill agro based and mineral based industries. 4.8 The Gibbs-Martin Index of Diversification It is a useful alternative index for testing the diversification of employment in industry. It is developed by Gibbs and Martin (1962). If the labour force in a region is concentrated wholly in one industry the index is zero; if it is evenly distributed throughout every industry (i.e. maximum diversification) the index approaches one. (Hammond and McCullagh, 1974). The fonnula used by Gibbs-Martin is I X2 1= 1 - [I X] 2

Where I = Index of diversification.

X = Number of employees III IIldustrial category.

Index of diversification in till"; case is 0.604. This indicates that there is neither concentration of labour force in one industry nor it is evenly distributed throughout any other industries. (Table No: 4.18) More than fifty percent labour force is engaged in metal and engineering industry. Concentration of industrial workers in chemical industry is approx. J 6% and remaining industrial categories are having less than I % of labour force. Hence, there is moderate diversification. The Gibbs-Martin index of diversification for employment in S.S.I is 0.816. It indicates that there is greater diversification. Employment in metal, textile and chemical industries is somewhat equal. It is nearly 18-22% of the total employment. More than 5% of workers are found in electrical, plastic and other industries. In comparison with this industrial employment, vel}' small percentage of workers is observed in forest-based and agro-based industries. So there is not specialization of industries but the diversification of industries is more. Gibbs - Martin index for employment in LSI is 0.604. It indicates that there is more diversification. Employment in metal industries is more than 60 % of the total employment in LSI (Table No: 4.18). Percentage of employment in chemical industry is 137

Table No: 4. 16

GIBBS--MARTIN INDEX - EMPLOYMENT [S.S.I.] 2002.

i I NO TYPE OF INDUSTRY EMPLOYMENT (X) I 1 Agro Based. I 127 1 2 Forest. 958 3 Mineral. 37 1 4 Food and Beverages. 25 14 5 Textile. 6604 6 Leather. 2243 7 Rubber. 5492 8 Plastic. 10576 9 Chemi cal. 15953 10 Metal- Eng. 6078 -I ------.~ 11 Electrical 3 167 r - I ------~- 12 Electronic. -I 6232 4045 13 Non Meta l. - 14 Other. - ~ 43062 TOTAL I 108542

Source: D.LC., Thane.

1= 1 - l = 0.8 163. [L Xl 2 138

Table No: 4.17

Grnf3s-MARTIN INDEX -CAPITAL INVESTMENT [S.S.I.} 2002.

NO TYPE OF INDUSTRY eAPIT AL INVESTMENT LAKH RS (X) I Agro Based. 1292.1 5 2 Forest. 937.5 3 Mineral. 1116.99 4 Food and Beverages. 129316.92 5 Textile. 179012.71 6 Leather. 710.94 7 Rubber. 2204 .94 8 Plastic. 28859.24 9 Chemical. 18707.00 10 Metal-Eng. 25581.4 II Electrical 4632.32 12 Electronic. 1872.92 13 NOll Metal. 2506.33 14 Other. 227958.32 TOTAL 624510.45

Source: D.Le., Thane.

I = 1- 0.811

[1: X] 2 139

Table No: 4.18

GIBBS-MARTIN INDEX - EMPLOYMENT [L.S.I.] 1996.

NO ! TYPE OF EMPLOYMENT (X) X2 ! INDUSTRY r--~i ] ~ Metal Engr. 187477 35]47625529 1------2 Chemical. 45007 2025630049 3 Other. 13602 185014404 4 Electronic. 8847 78269409 5 Textile. 8822 77827684 6 Non Metal. 3225 10400625 7 Plastic. 2991 8946081 8 Food and Beverages. 2589 6702921 9 Rubber. 2414 5827396 10 Electric_ 2063 4255969 ,._-- ~-- ---~~----~ r----- . ~,------~-- --- I 1 Leather. 586 322624 -~ 12 Forest. 76 5776--- TOTAL 277699 37550828467 ------~------~---

Source: D.l.e., Thane.

I = 1-

[L Xl 2 1=0.604. 140

Table No: 4.19

'GIBBS-MARTIN INDEX -CAPITAL INVESTMENT [L.S.I.} 1996.

-- ~.

SRNO TYPE OF INDUSTRY CAPIT AL INVESTMENT (RS IN LAKHS) I Chemical 25829.75 2 Others. 6414.32 3 Textile. 6313.82 4 Non Metal. 5456.67 5 Electric. 4836.76 6 Metal. 3922.50 7 Food and Beverages. 2012.00 8 Electronic. 1541.00 9 Leather. 829.16 10 Plastic. 491.32 11 Rubber. 316.59 12 Forest. 4.5 TOTAL 57869.1

Source: D.l.C.- Thane.

I X2 I 1 ------

[I X] 2

1=0.755. 141

.'v ....

. \.-

16.21 % but in textile, electronic, non metal, plastic and rubber industries percentage is less than 5 %. According to Gibbs - Martin index for Capital Investment in LSI, diversification is more. Gibbs - Martin index is 0.755. Capital Investment is highest in chemical industries (44.63 %). In textile, other and non metal industries, investment is nearly 10 %. Investment in plastic, rubber and leather industries is 2 to 3 %. It indicates the greater diversification in LSI in Thane district. Maharashtra is proud of highly diversified industrial structure. In the last three decades, the comparison of the organized industrial sector has undergone considerable change (M.I.D.C. - 1994). In Thane district, stnlcture of manufacturing industry has been changing. There is no concentration of employment and capital investme!1t in anyone type of manufacturing industry. With the availability of relatively superior infrastructure, power supply and highly trained skilled man power, the district \vill continue to have the magnetic pull to invest capital in new industries. 142

References

Chapter IV

Action Plan, (1988 - 1998): D.l.C, Thane District., Maharashtra.

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