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Economy of Mangalore

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Mangalore skyline from Forum Fiza Mall

Industrial and commercial activities dominate Mangalore's economy. It is the only city in Karnataka to have all modes of transport - Air, Road, Rail and Sea.[1] The fastest growing non metro (Indian city of population less than 1 million) in South India is Mangalore.[2][3][4][5] Mangalore is the 2nd largest business centre in Karnataka.[6]

Around 75% of India's coffee, timber and cashew nuts exports are handled by the New Mangalore Port.[7] Mangalore is one among the only 5 cities in the country to have both a Major Port and an International Airport. Mangalore has some of the tallest buildings in South India, with many more under construction.[8] Mangalore International Airport is among the 2 International Airports in Karnataka, along with Bangalore International Airport.[9]

Petrochemicals and processing[edit]

The Kudremukh Iron Ore Company in Mangalore

BASF, Mangalore Refinery and Petrochemicals Ltd. (MRPL), Mangalore Chemicals and Fertilizers Ltd. (MCF), Kudremukh Iron Ore Company Ltd. (KIOCL), Hindustan Petroleum Corporation Limited (HPCL), Bharat Petroleum Corporation Plant (BPCL), JBF Petrochemicals[10] and Total Oil are the major petrochemicals and processing industries in Mangalore.[11] One of the largest SEZ's in India, the ONGC - Mangalore Special Economic Zone is in Mangalore. MRPL, the only refinery in the state, will soon get a Navaratna Status.[12] Mangalore Chemicals & Fertilizers (MCF), the only fertilizer factory in the state, is situated at Baikampady. HPCL has its oil refinery at Mangalore.[13][14] BPCL has established an LPG plant near the New Mangalore Port.[15] BASF has established a Research and development (R&D) centre at Mangalore.[16][17]

At the Mangalore Special Economic Zone, in a new 15 million tonne refinery, petrochemical plant and power and LNG plants, The Oil and Natural Gas Corporation(ONGC) plans to invest over Rs. 35,000 crore. Of the country, this will be the first Petroleum, Chemicals, Petrochemicals Investment Region (PCPIR).[18] India has built 5.33 million tons of strategic crude oil storages at Mangalore, Padur (near Udupi) in Karnataka and at Visakhapatnam to ensure energy security.[19][20][21] Mitsui, a Japanese conglomerate has planned to setup an LNG terminal in Mangalore.[22]

Logistics[edit]

Interlog Services, a French logistics firm has established its office at Mangalore Hills.[23][24]

The table below lists some of the Logistics companies situated in Mangalore.

Logistics firm Headquarters
Interlog Services[25] Orleans, France
Seaways Shipping and Logistics Ltd.[26] Hyderabad, India
Delta Infralogistics (worldwide) Ltd.[27] Mangalore

Ship building[edit]

Bharati Shipyard Ltd (BSL) has established its ship building site near Tannirbavi in Mangalore.[28] Mangalore is the 6th shipyard established by BSL. Cargo ships are built here which have a maximum length of 120 meters.[29] BSL's subsidiary, Tebma Shipyard has a ship manufacturing site at Malpe, which is 56 km from Mangalore city.[30]

IT and IT enabled services[edit]

Infosys Mangalore

Major information technology and outsourcing companies have established their presence in Mangalore.

Multi-National Corporations
Infosys
Cognizant Technology Solutions[31][32]
Endurance International Group[33][34]
Mphasis
Thomson Reuters
Riskonnect[35]
Perform Group[36]
Vecima Networks[37]
Atlantic Data Bureau Services[38]

Other than MNC's, there are a few more IT firms in Mangalore.

Company Parent
Planet Synergy Inc. Planet Synergy Inc., Georgia
Novigo Solutions[39] -
Bolas Intelli Solutions -
Code Craft Technologies[40] -
Sourcepage Technologies[41] Sourcepage, Florida
Invenger Technologies Invenger, California
Diya Systems GlowTouch Technologies, Kentucky
Winman Software[42][43] -
Karanji Infotech Pvt. Ltd.[44] -
Kiran Technologies[45] -
Robosoft Technologies -
UniCourt India (previously Mangalore InfoTech) -

Due to the quality education provided by the educational institutes in the city, it has also given birth to multiple IT startup companies.[46] To over 15,000 IT professionals and more than 55 companies, Mangalore is home.[47]

Soorya Infratech Park[edit]

Soorya Infratech Park is located at Mudipu, 16 km from Mangalore city centre. It is located beside Infosys Mangalore campus with an area of 2.4 lakh square feet. Currently there is one company functioning from the IT Park.[48]

Manufacturing industries[edit]

Pharmaceutical industry[edit]

Sequent Scientific Ltd. is a Pharmaceutical company, and has its manufacturing unit at Baikampady in Mangalore.[49] Syngene International, a contract research arm of Biocon, has planned to setup a manufacturing plant at Mangalore SEZ.[50][51]

Wind energy turbines[edit]

Suzlon has established its energy generation plant at Padubidri near Mangalore. Suzlon Energy plans shortly to manufacture REpower wind turbines at its plant near Mangalore.[52]

Candle manufacturing industry[edit]

Primacy Industries Ltd. in Mangalore manufactures scented candles and exports them to Europe, United States and the Middle-East.[53][54]

Real estate[edit]

Mangalore has been making progress in the Real Estate sector.[55] In recent years, various builders such as Mohtisham, Bhandary, Inland, Westline, Marian, Raheja, Prestige Group, Larsen & Toubro and Brigade Group have built various skyscrapers in Mangalore city.[56]

The various buildings in Mangalore city exceeding 90 meters in height are

Sl. No Name Floors Location Year Height Status
1 Planet SKS[57] 40 Kadri Hills 2016 140 metres (459 ft) Completed
2 Northern Sky City Tower A 32 Pumpwell 2016 112 metres (367 ft) Completed
3 Menorah Alexandria 27 Light House Hill 2016 95 metres (312 ft) Completed
4 Inland Windsors[58] 26 Mary Hill 2012 91 metres (299 ft) Completed
5 Brigade Pinnacle 26 Derebail 2015 91 metres (299 ft) Completed
6 Raheja Pacific 26 Kulai 2015 91 metres (299 ft) Completed
7 Bhandary Vertica[59] 56 Kadri 2020 196 metres (643 ft) Under construction
8 Westline Signature 53 Nanthoor 2020 186 metres (610 ft) Under construction
9 Presidency Marvel 40 Pumpwell 2021 141 metres (463 ft) Under construction
10 Marian Crown 38 Padavu 2021 134 metres (440 ft) Under construction

Banking and finance[edit]

Five of the nineteen banks nationalised during the first half of the 20th century were established in Mangalore.

Bank Founded Founded by Head Office (present)
Karnataka Bank 1924; 93 years ago (1924) Suryanarayana Adiga Mangalore
Corporation Bank 1906; 111 years ago (1906) Khan Bahadur Haji Abdulla Mangalore
Canara Bank 1906; 111 years ago (1906) Ammembal Subba Rao Pai Bangalore
Syndicate Bank 1925; 92 years ago (1925) T. M. A. Pai Manipal
Vijaya Bank 1931; 86 years ago (1931) A. B. Shetty Bangalore

Karnataka Bank was established on 18th February 1924 in Mangalore.[60] In addition to these, two banks were established in nearby towns. Corporation Bank was founded in Udupi by Khan Bahadur Haji Abdulla Haji Kasim Saheb Bahadur in 1906,[61] and Syndicate Bank was co-founded in Manipal by T M A Pai, Upendra Ananth Pai, and the Mangalorean V S Kudva in 1925. While Karnataka Bank[60] and Corporation Bank[62] are still headquartered in Mangalore, Vijaya Bank and Canara Bank[63] are headquartered in Bangalore and Syndicate Bank is headquartered in Manipal.

The Mangalore Stock Exchange (MgSE) was incorporated on 31 July 1984 as a public limited company. The company was granted recognition as a stock exchange on September 9, 1985.[64] It was de-recognised by the SEBI on 31 August 2004.[65][66] Appeals by the Stock Exchange to overrule this order have been subsequently rejected on 2 November 2005 and 4 October 2006.[67]

Food processing[edit]

Campco has its chocolate manufacturing plant at Puttur near Mangalore.[68] The plant produces chocolates and other products of cocoa both under its own brand and also for Nestle.[69] Achal Industries has built its cashew processing plant at the Baikampady Industrial Estate in Mangalore.[70]

Cruise tourism[edit]

Norwegian Star, a Cruise ship docked at the New Mangalore Port

Various cruise ships such as Regent Seven Seas, Norwegian Star, Oceania, Celebrity, Costa, AIDA, Nautica and Royal Caribbean International have visited the New Mangalore Port.[71][72] Foreigners can enter Mangalore through the New Mangalore Port with the help of Electronic visa (e-visa).[73] Cruise ships from Europe, North America and UAE arrive at New Mangalore Port to promote tourism around Mangalore.[74][75]

Shopping malls[edit]

Forum Fiza Mall
Panorama of the Empire Mall
City Centre Mall

Replacing traditional shopping complexes, Mangalore's retail space has gone for a change with several malls being set up in the city, in recent times.[76] There are multiple Malls in pipeline, such as Forum Fiza Mall, City Centre Mall, Empire Mall and Bharath Mall.[77] The biggest mall in Mangalore is Lotus Mall, with a total built-up area of 12.7 lakh sq ft and a GLA of 9 lakh sq ft.[78]

Mall Location GLA Status
Forum Fiza Mall Pandeshwar 686,892 Operational
City Centre Mall K.S. Rao Road 540,000 Operational
Bharath Mall Bejai 200,000 Operational
Empire Mall M.G. Road 125,000 Operational
Mak Mall Kankanadi 70,000 Operational
Excel-Mischief Mega Mall K.S. Rao Road - Operational
Inland Galore Kankanadi - Operational
Lotus Shopping Centre Bikarnakatta 900,000 Under Construction
Time Square - Proposed
Pio Mall - Proposed
Golden Harvest Mall - Proposed
Mangalore Central Mall - Proposed
Golden Square - Proposed
Plama Mall - Proposed

Startups[edit]

Government of India has planned to make Mangalore the first startup district in the country with 20 tinkering labs and incubation centres.[79][80] The startups aim at providing solutions in agriculture, health, education and information technology.[81]

Research and development (R&D) centres[edit]

There are 3 Research and Development (R&D) centres near Mangalore. They are

  • BASF - located at Katipalla[16][17]
  • Central Plantation Crops Research Institute (CPCRI) - located at Vitla[82]
  • National Research Centre for Cashew (NRCC) - located at Puttur[83]

Special Economic Zones[edit]

The following Special Economic Zones(SEZs) to be located in and around Mangalore have been approved by Board of Approval, Government Of India & Under establishment.[84][85]

Location Status Name of Promoter
Multi Product Special Economic Zone - 588 hectares Attracted Rs.13,000 crores till date with exports from units exceeding Rs.2,500 crores. Mangalore SEZ Ltd.[86]
Infosys - IT&ITES SEZ - 125 hectares Notified and 1st phase operational Infosys Tech. Ltd.[87]
Thumbay, Bantwal, Dakshina Kannada District - IT/ITES SEZ - 10 hectares Formal approval and notified. Under Implementation. B.A.Tech Park Pvt. Ltd.[88]
KIADB - IT&ITES SEZ - 203 hectares Formal approval Karnataka Industrial Areas Development Board[89]
EPIP Indl.Area, Ganjimutt, Mangalore - IT/ITES SEZ - 10 hectares Formal approval Nitesh Estates Private Limited
EPIP Indl.Area, Ganjimutt, Mangalore - IT/ITES SEZ - 10 hectares Formal approval Brigade Enterprises Private Limited
EPIP Indl.Area, Ganjimutt, Mangalore - IT/ITES SEZ - 10 hectares Formal approval Kinfotech Software Pvt. Ltd.
Padubidre, Udupi District. - Hi-tech Engineering SEZ - 259 hectares Notified and 1st phase operational. Suzlon Infrastructure Ltd.

Fishing[edit]

Fishing in Mukka, in Mangalore taluk

Fish is one of the widely consumed food in Mangalore.[90] Old Mangalore Port is the fishing port in Mangalore.[91] The city has an ice factory on the banks of Netravati river and fish meal processing industries.[92]

Traditional commerce and industry[edit]

Tile industry[edit]

Although the tile industry has been in decline due to the predominance of concrete in modern construction, Mangalore tiles were exported to East Asia, Europe, Australia, Africa, and the Middle East.[93]

Other industries[edit]

Coffee and cashewnut industries consist of small-scale operations. Cashews are cultivated in the hilly regions towards the east of the city.[94]

Healthcare services[edit]

Notable Hospitals
Omega hospital
Wenlock District Hospital
Father Muller Hospital[95]
K. M. C. Hospital[96]
K S Hegde Hospital
A. J. Hospital
Indiana Hospital & Heart Institute
Government Lady Goschen Hospital[97]
Yenepoya Hospital
Unity Hospital
S. C. S. Hospital
Athena Hospital
City Hospital
Thejaswini Hospital
Colaco Hospital
Mangala Hospital[98]
E. S. I Hospital

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