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Tamil Nadu
Where technology is available on streets personality of the week
A.V. Varadharajan –
“Coimbatore is a city where technology is available on streets. You can get qualified workers – be in pumps, motors, foundry and wet grinders. Name it, you get it. If one wants to set up an industrial unit in Coimbatore region all that he requires is initiative and some capital. I started with just Rs. 10,000 and seven workers in 1962,” says A.V. Varadharajan, a self-made industrialist whose life is symbolic of the entrepreneurial and never-say-die spirit of Coimbatore.
In an interaction with G. Satyamurty, he traces his rags-to-riches story and the phenomenal evolution of Coimbatore into an industrial city.
“Belonging to an agriculture family at Appanaickenpatty village, 30 km from Coimbatore, I had to walk for six km to reach the high school at Lakshminaickenpalayam, started by the philonthropic Elgi group. It was one of the three high schools the district had then. After completing Intermediate in 1954, when I sought a job from the principal of the PSG College of Technology, G.R. Damodharan, he asked me the reason for not pursuing higher studies. I told him marks alone won’t do as my family background was poor.
Not only did he absorb me as the canteen clerk of the college immediately but also gave me a seat in engineering the next year. Besides, he gave me a part-time job as clerk in college cooperative stores to defray my expenses. I owe my progress to him. Besides, it was my younger brother Ranganathan, who worked in a mill and took care of my family when I continued my education.”
After graduation,he became an Assistant Engineer in PSG Industrial Institute only to start a small foundry in 1962. Beginning with manufacture of sanitary fittings, he diversified into engineering castings in 1968 and special purpose machines in 1976.
“With the well-qualified younger generation of my family joining me, the progress from there onwards has been very fast.” Now heading four industrial units with a total workforce of 1,800, including 300 administrative personnel, he says: “I tell my sons that the workers will take care of production if you take care of them properly. Even at their personal level, it is imperative. My entire growth is due to the team of workers I have.”
There is hardly any post in the industrial and trade bodies that Mr.Varadarajan has not held. Even at the State level, he headed the Tamil Nadu Small Scale Industries Association and is currently the president of the Tamil Nadu Electricity Consumers Association.
But, his major contribution is to the construction to the CODISSIA Fair Complex, one of the biggest in the country, through conduct of trade fairs.
“Coimbatore never had a trade fair – wherein the machines are displayed at the functioning level with massive power back-up – upto 1980s. As chairman of the Industrial Trade Fair Coimbatore (INTEC) 1988, with the help of a dedicated team of 100 entrepreneurs, it was the first time that 200 stalls from various parts of the country were set up at the PSG grounds, thanks to the support extended by then Managing Trustee G.Varadaraj.
“And we had 1,500 HP temporary supply to help the machinery in the fair running. As it proved a resounding success, I continued to be the chairman of three more INTEC fairs held at three year intervals upto 1997. It normally takes six months of preparation for the conduct of a fair. By then we had mobilisied substantial funds for going ahead with the construction of a trade fair complex. It was because of the philonthropic minded industrial families, who were prepared to part with their land at a reasoable price, we were able to get 40 acres off Avanashi Road for the structure.” Mr. Varadajan is all kudos for the entrepreneurial spirit of Coimbatoreans. He makes special mention of a few as the major contributors for the current scenario. “While it was Textool Balasundram who introduced sub-contracting in a big way thus paving way for a number of small units, the PSG Industrial Institute supplied the technology and the LMW imparted quality consciouness – both in manufacturing and control. Of course, starting of PSG Engineering College in 1951, one of the handful in the State those days, and the polytechnics and industrial training institutes had also provided ample technical knowledge.
“Every one, who had some technical qualification , turned out to be an entrepreneur, after three to five years. The very acquaintance with an entrepreneur rubs off on another youth. Thus the district has almost 60,000 registered small units and more than 15,000 unregistered ones.
“The major reason for their success is that most of them started the units in a rented building using second hand machinery. Thus their initial investment was meagre.
They bought a car only through their earnings whereas in many other places various facilities, including the car, are brought in through the loan even before the unit starts functioning. Thus the industry there is given birth in sickness.”
He confidently points out that only the spinning mills, which made Coimbatore the Manchester of South India, were started with considerable capital. From the beginning, Coimbatoreans have been conservative in taking loans and have been “transparent” to the financial institutions compared to those in other places.
Above all, their NPA and failure rate is far less. Especially in 1960s, it was Mr. Parthasarathy, Director of Small Industries Service Institute, and Mr. Viswanathan of the State Bank of India who played a major role in the promotion of industries.
Besides, Mr. Varadarajan is happy to explain how the initiative of Mr. Narayanasamy to produce steel bureaus (when Godrej alone was known) triggerred almost 500 furniture units in Coimbatore. Similarly, wetgrinder is the invention of Mr. Sabapathy of NH Road and it has also motivated 500 more entrpreneurs in Coimbatore. It was the unlettered ‘Sharp Ramasamy’ who brought in small pump manufacutring and now Coimbatore has any number of international level pump manufacturers.
“The numberof CNC machines put up in the city will vouch for the industrial progress and no other city has seen such a growth.”
Above all, it is the quality of Coimbatore products – castings, casting related products like auto components and light engineering products that has established itself all over.
“Our foundry technology is second to none and we are very competitive both price-wise and technology-wise.” Of course, due to the global economic slow-down, the demand might have declined.
“But we will definitely bounce back in the long run.” He is extremely unhappy at the current power scenario which is leading to a serious industrial downturn.
“Coimbatore, which is the biggest power consumer only next to Chennai, requires 1200- 1500 MW. Though our generation does not match the demand, can’t the Government think of some power conservation measures? For instance, if all the six crore tube lights in 1.5 crore consumers premises in the State were to be made CLF lamps, it could conserve as much as 750 MW. This might cost Rs 600 crores. But it would be a pittance considering the net benefit,” he asserts.
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