Economy of Vellore

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Vellore has a diversified economy based on Leather Industries, Automobile Industries, Engineering & Manufacturing Industries, Precision Tool Induutries, Explosive Industries and Service Sector Industries.

SIDCO & SIPCOT Industrial Parks in Vellore region are located at katpadi, Ranipet, Mukundarayapuram, Vannivedu and Arakkonam. Industrial cluster of leather industries are located at Ambur, Vaniyambadi and Ranipet.

Future developments include Electronics Manufacturing Cluster (EMC), Leather SEZ and Information Technology SEZ.

Industrial Parks and Clusters[edit]


Tamil Nadu Small Industries Development Corporation, an Undertaking of Govt. of Tamil Nadu, popularly known as SIDCO has been formed mainly to Develop the Industrial Estates in Tamil Nadu during the year 1972. List of SIDCO's in Vellore region are,[1]

No. Location Area (in acres)
1 SIDCO-Katpadi 19.480
2 SIDCO-Ranipet 113.44
3 SIDCO-BHEL 86.195
4 SIDCO-Vannivedu 16.44
5 SIDCO-Arakkonam 56.240


The State Industries Promotion Corporation of Tamil Nadu Limited (SIPCOT) was formed in the year 1971, to promote industrial growth in the State and to advance term loans to medium and large industries.[2] SIPCOT Industrial Complex, Ranipet Phase I is located at Mukundarayapuram and Phase II & III is located at Ranipet spread over an area of 730 acres.[1]

Leather Cluster[edit]

Hundreds of leather and tannery facilities are around Vellore and nearby towns, such as Ranipet, Ambur and Vaniyambadi. The Vellore district is the top exporter of finished leather goods in the country. Vellore leather accounts for more than 37% of the country's export of leather and leather-related products (such as finished leathers, shoes, garments and gloves).[3]

Electronics Manufacturing Cluster (EMC)[edit]

Vellore is set to emerge as the first region in Tamil Nadu to develop an Electronics Manufacturing Cluster (EMC) soon. Group of entrepreneurs have resolved to apply to the Department of Electronics and Information Technology (DEITY) to get Vellore region notified as a ‘Brownfield’ EMC, at a convention held at Kramski office, Vellore on June, 2013.[4][5] On January 18, 2014 'Brownfield' Electronics Cluster in Vellore region has been approved.[6]

IT SEZ[edit]

As per the policy directive of Government of Tamil Nadu, ELCOT is promoting Information Technology Parks in Tier I and in the Tier II cities. Integrated Information Technology Campusus consisting of Information Technology buildings as well as Residential and Social Infrastructure facilities will be established with Government and Public Private Partnership (PPP) mode in Vellore along with other Tier II Cities.[3] Chief Minister Jayalalithaa announced on Dec,2012 that feasibility study of IT park in Vellore will be initiated.[7]


Leather Industries[edit]

As leather industries in this region, contribute a major share in country's leather export there are several major leather factories few among them are,

Company Year & Founder Plants/Factories Employment
FARIDA Group[8] 1957 by Haji Mecca Abdul Majid Sahib 12 7000+
KH Group[9] 1982 by Khizar Hussain 4 7000
TAW 1949 by T. Abdul Wahid & Co 3 3400
NMZ 1972 by N M Zackriah 5 1800
Florence[10] 1979 by Aqueel Ahmed 10[11] NA

Other major factories are Althaf Shoes,[12] Bachi Shoes,[13] Florind Shoes, IRBAZ Group,[14] TMAR Group,[15] Nibras Shoes and SSC.[16]

Automobile Industries[edit]

Automobile and mechanical companies of global Brands, including SAME Deutz-Fahr, TVS–Brakes India, Mitsubishi, Greaves Cotton and MRF have their manufacturing units in the area.

SAME Deutz-Fahr tractors
  • SAME Deutz-Fahr India, part of the SAME Deutz-Fahr group of Italy has their plant at Ranipet, Vellore. Manufacturers of tractors, engines and agricultural machinery firm entered India in 2005 with initial investment of 88 Crores.It exports tractors in the range of 35-70 HP and components - engines and transmission. Production capacity was 6,300 tractors per annum in the year 2009.In the year 2008, the company exported 1,500 units to the US and Europe and has set a target to double the figure in the coming year. This facility will cater to markets like Sri Lanka, Bangladesh and African countries.[17] SAME Deutz-Fahr (SDF) India Group planning to introduce the premium brand Lamborghini tractors in India.The group is also planning to make India its global production hub for engines within the next three years and will move its global tractor engine production from Italy and Germany to the plant of its Indian arm, Same Deutz-Fahr India at Ranipet, Vellore.[18] SAME Deutz-Fahr is planning to expand its production base in this plant.The plan is to get to 30-35 HP at the lower end and 80-100 HP at the upper range. Currently the production capacity of this plant is 15,000 tractors per year and its planning to increase it further.[19][20]
  • Greaves Cotton part of Thapar Group manufacturers of automotive engine (diesel and petrol engines for three- and four-wheelers), construction equipments gensets and farm equipments has their manufacturing unit at Ranipet, Vellore. Greaves Cotton plans to expand its construction equipment products range. This 1,700-crore multi-product company, has signed a pact with Samil of South Korea seeking technical know-how for products such as stationary concrete pumps and boom pumps. The company is also planning to expand its diesel engine manufacturing capacity at this plant.[21]
  • Bavina Cars India Limited, has been allotted a 100-acre plot at Ranipet SIPCOT's SEZ for its hybrid electric car manufacturing facility at an investment of 300 crores[22] with a capacity to produce 40,000 cars per year with technology support from Velozzi of the United States.[23] This will be the second battery-powered car production unit in the country after Bangalore’s Reva Electric Car.[24] There are reports that this project has been on hold due to financial issues of the firm.

Engineering & Manufacturing Industries[edit]

  • Bharat Heavy Electricals Limited (BHEL) is an Indian state-owned integrated power plant equipment manufacturing company. Its Boiler Auxiliaries Plant (BAP) is located at Ranipet, Vellore. BHEL Ranipet has performed exceedingly well according to its executive director as it has won the ‘Best Productive Unit’ trophy from among all the units of BHEL for the year 2012. This plant has clocked a turnover of 4,210 crore with shop production crossing the 1 lakh metric tonne benchmark and also registered a profit before tax of 1,260 crore for the 2012 financial year. It has so far obtained 21 patents and 46 copyrights.[25]
BHEL-Boiler Auxiliaries Plant(BAP), Ranipet is installing a 5 MW solar power plant which will cover the entire energy needs of the plant [26] and it also has entered into a technology tie-up with Mitsubishi Heavy Industries, Japan, to manufacture and supply flue gas desulphurisation system meant for removal of sulphur dioxide from flue gases.[27]
  • ArcelorMittal Dhamm Processing Private Limited is a joint venture firm between the world's largest steel producing firm ArcelorMittal and Mumbai based Dhamm Steel for manufacturing steel components at an estimated cost of 100-crores at Ranipet, Vellore.It manufactures finished steel components for earth moving equipment manufacturers, construction and power industries.[28]
  • MRF Limited (Madras Rubber Factory limited) is an India-based company engaged in manufacturing, distribution and sale of tyres for various kinds of vehicles ranging from helicopters to automobiles is located at Arakkonam, Vellore.[29]

Precision Tool Industries[edit]

  • Mitsubishi Heavy Industries India Precision Tools Limited (MHI-IPT), a subsidiary of Japan-based Mitsubishi Heavy Industries, opened its plant at Ranipet, Vellore in 2007, doubling its production capacity in gear cutting tools.[30] Products manufactured by MHI-IPT at this plant are Hobs, Shaping cutters, Gear Shaving cutters, Master Gears, Broaches and Rotary cutter.
  • KRAMSKI Stamping and Molding India Pvt Ltd, a subsidiary of KRAMSKI GmbH headquartered in Pforzheim, Germany, precision metal and plastic integrated-component manufacturing company with automotive, telecommunications, electronics and medical applications is located on a 10-acre site at Erayankadu, about 16 km from the Vellore city on the Chennai-Bangalore National Highway, established at the cost of Rs.15 crore which is the lone Indian plant of this Germany based firm.[31][32] KRAMSKI, which has currently located its office in the Vellore Institute of Technology-Technology Business Incubator (VIT-TBI), has signed a Memorandum of Understanding with the VIT-TBI for soft launching of the company in Vellore.[33] This plant being one among the two plants in Asia from KRAMSKI GmbH was inaugurated by Vellore Collector in the year 2009.[34]
KRAMSKI Stamping and Molding India Pvt Ltd a leading manufacturer of electronic components has won two ELCINA-EFY (Electronics Industries Association of India-Electronics For You) awards. One award for being the Outstanding Electronics SME (Small and Medium Enterprise) of the Year Special Jury Award for its achievements by an Electronics SME in India in the medium company category for the year 2012-13, and the second prize in Excellence in Environment Management under the SME category (for a medium company) the another award for the same year.[35]
  • TVS-Brakes India Sholingur's foundry division is located at Vellore-Sholingur to manufacture Permanent Mould Grey Iron castings with an installed capacity of 5,000 MTPA which later increased to 26,000 MTPA in the year 2005.[36]

Explosive Industries[edit]

Service Sector Indsutries[edit]

Vellore is among the top medical destination in the country due to the presence of Christian Medical College & Hospital (CMCH), which ranks top in the country. CMCH is located on Ida Scudder Road in the heart of the city, and its Vellore's largest private employer and has a large floating population from other parts of India and abroad. The Government Vellore Medical College and Hospital (VMCH) is located at Adukamparai in Vellore. With the advent of hospitals such as Apollo KH Hospital in Melvisharam and Sri Narayani Hospital & Research Centre in Sripuram medical tourism is rapidly growing.


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