R. Balaji

With an impressive presence in the engineering sector, Tiruchi industries are upbeat on future growth.

Companies that make batteries for fighter aircraft and battle tanks, steel towers for windmills, boilers for power plants and dried bananas for the domestic market, they are all here in Tiruchi.

These are in addition to the traditional agriculture — powered by the Cauvery that flows through it — and the industry it has spawned, the rice mills and sugar mills.

What bonds all of them is their mood — which is upbeat. All of them believe that they are on the threshold of growth. Tiruchi is the happening place, they say.

Engineering industries find their order books full, new customers and business opportunities are opening up and agriculture is leaving behind years of drought and is looking forward to a good season.

But it is not all rosy, they say. A common concern is manpower, trained people to do the job. Physical infrastructure is another concern — all this business means movement. Roads need to be upgraded, air connectivity improved, these are happening but slowly, they say.

Major potential

Mr S. Sridharan, Managing Director, High Energy Batteries (India) Ltd, the company that makes batteries for specialised applications for defence and space applications, says Tiruchi is becoming an `energy pivot.'

Whether it is making boilers for power or steam generation, equipment for biomass-based projects, fuel cells for rural electrification, there is a major potential.

High Energy itself, for instance, is working on fuel cells for rural power generation. This is a sector where Tiruchi has built a natural strength and needs to be encouraged.

The focus should be on setting up more institutions that work at developing such technologies. High Energy Batteries is recognised by Indian Institute of Technology at Mumbai and Chennai, and the Bharathidasan University, Tiruchi, as a research and development centre.

Small entrepreneurs should be encouraged. Apart from BHEL, the mother industry that underpinned the growth of the engineering industries, there is more coming up. There is need for ancillary industries with the capacities of the existing players stretched.

The geographical location — midpoint on the map of Tamil Nadu — also makes Tiruchi ideal for projects.

According to Mr B. Pattabhiraman, Managing Director, GB Engineering Enterprises, the fast expansion in power projects, including wind power, is driving the engineering and fabricating industry in Tiruchi. Over the last two years, there has been a big jump in manufacturing towers for windmills.

At the Thuvakudi Industrial Estate, on the outskirts of Tiruchi, business volumes have grown from Rs 80 crore two years ago to Rs 400 crore.

GB Engineering's turnover has tripled to Rs 100 crore and more of the increase is from power and steam generation related works.

Sustained growth

The growth is going to be sustained, says Mr B. Pattabhiraman. BHEL is expanding and the Thuvakudi industrial estate's growth is based on that of BHEL. From the present Rs 2,500 crore, it expects a turnover of Rs 10,000 crore and its workload is continuously on the increase.

Apart from BHEL, new large players such as Cethar Vessels, GB Engineering are also spurring growth of smaller players. When the industrial estate did over Rs 80 crore business, BHEL was responsible for Rs 70 crore of it. Today, of its Rs 400-crore turnover, BHEL business represents Rs 150 crore and over Rs 250 crore is from other sources, he said.

He said that the 200-acre industrial estate is fast expanding and over 300 acres of additional land have been bought and in 2-3 years at least a 1,000 acres would be needed.

"Take my industry for example," he says, "GB is spread over 12 acres; it has acquired 100 acres and is planning to buy 200 more. There are 10 more companies growing along similar lines."

Challenges to growth

More business means more movement. Road, rail and air links hold the key to growth. Tiruchi is centrally located but poorly connected, especially by air.

When there is a large buyer, "we go to see them in Chennai or charter a 4-seater aircraft from Bangalore — an expense of Rs 1.5 lakh each time," says Mr Pattabhiraman.

One flight lands now sometime in the afternoon, an odd hour. Tiruchi needs to be better connected to Mumbai and Delhi. People now travel by road to Chennai and catch a flight. But more than 70 per cent of the traffic to the Gulf, Singapore and Malaysia from the Chennai airport is from Tiruchi and places south of it, he said.

The roads leave much to be desired. The ring road skirting the city is yet to be taken up. More four-lane roads are needed.

Human resource

More business means more employment. Most of the employees are from the surrounding towns and cities, including Thanjavur, Pudukottai, Perambalur, apart from Tiruchi itself. But training takes time. A candidate who has finished school needs at least 6 months of on-the-job training for each area of work like welding or grinding. Training institutions are coming up thanks to industry efforts. GB Engineering had 300 workers last year and this year 1,000, he said.

According to Mr P.V. Kannan, former regional chairman, Confederation of Indian Industry, a faster route would be to include industry training as a part of the curriculum. Recruits need to get going from day one.

Industrial training can become a part of the students' education. Let the final year of education be in a company, he says.

Volumes are growing but profit margins are shrinking. So the growth has to be sustained and for now manpower is a limitation, he says.

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