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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 Airport is among the 2 International Airports in Karnataka, along with Kempegowda International Airport.[9]

Petrochemicals and processing

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), ONGC Mangalore Petrochemicals Limited (OMPL), JBF Petrochemicals[10] and Total Oil are the major petrochemicals and processing industries in Mangalore.[11] One of the largest SEZ 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 set up an LNG terminal in Mangalore.[22]

Logistics and Shipping

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

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

Logistics and Shipping firm Headquarters
Interlog Services[25] Orleans, France
Seaways Shipping and Logistics Ltd.[26] Hyderabad, India
Delta Infralogistics (worldwide) Ltd.[27] Mangalore, India
Hapag-Lloyd[28] Hamburg, Germany
Maersk Line[29][30] Copenhagen, Denmark
SeaShine Shipping and Logistics Ltd.[31] Chennai, India
DIX Shipping Ltd.[32] Mangalore, India

Ship building

Bharati Shipyard Ltd (BSL) (now known as Bharati Defence and Infrastructure Limited) has established its ship building site near Tannirbavi in Mangalore.[33] Mangalore is the 6th shipyard established by BSL. Cargo ships are built here which have a maximum length of 120 meters.[34] BSL's subsidiary, Tebma Shipyard Limited has a ship manufacturing site at Malpe, which is 56 km from Mangalore city.[35]

Manufacturing industries

Sequent Scientific Ltd. is a Pharmaceutical company, and has its manufacturing unit at Baikampady in Mangalore.[36] Syngene International, a contract research arm of Biocon, has planned to set up a manufacturing plant at Mangalore SEZ.[37][38][39]


Suzlon has established its wind energy generation plant at Padubidri near Mangalore. Suzlon Energy plans shortly to manufacture REpower wind turbines at its plant near Mangalore.[40]


Primacy Industries Ltd. in Mangalore manufactures scented candles and exports them to Europe, United States and the Middle-East.[41][42]

Banking and Finance

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; 100 years ago (1924) Suryanarayana Adiga Mangalore
Corporation Bank 1906; 118 years ago (1906) Khan Bahadur Haji Abdulla Mangalore
Canara Bank 1906; 118 years ago (1906) Ammembal Subba Rao Pai Bangalore
Syndicate Bank 1925; 99 years ago (1925) T. M. A. Pai Manipal
Vijaya Bank 1931; 93 years ago (1931) A. B. Shetty Bangalore

Karnataka Bank was established on 18 February 1924 in Mangalore.[43] 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,[44] and Syndicate Bank was co-founded in Manipal by T M A Pai, Upendra Ananth Pai and V S Kudva in 1925. While Karnataka Bank[43] and Corporation Bank[45] are still headquartered in Mangalore, Vijaya Bank and Canara Bank[46] 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.[47] It was de-recognised by the Securities and Exchange Board of India (SEBI) on 31 August 2004.[48][49] Appeals by the Stock Exchange to overrule this order have been subsequently rejected on 2 November 2005 and 4 October 2006.[50]

Robotics and Automation

Mangalore Robautonics Pvt Ltd is a company that designs, develops and manufactures Robotics and Automation systems for agricultural, industrial and consumer sectors.[51][52][53]

Robotics Company Location
Mangalore Robautonics Pvt. Ltd Kuloor, Mangalore
Vanora Robots[54] MG Road, Mangalore

Information Technology (IT)

Major information technology (IT) and outsourcing companies like Infosys,[55][56] Cognizant Technology Solutions,[57][58] Endurance International Group,[59][60] and Thomson Reuters[61] have their branches at Mangalore.[62] Other multinational software companies having their presence in this coastal city include Riskonnect (specialized in Risk management)[63] and Arkieva (specialized in Supply Chain management).[64] Mphasis BPO has one of its branches at Mangalore.[65]

Food processing

Campco has its chocolate manufacturing plants at Baikampady and Puttur near Mangalore.[66] The plant produces chocolates and other products of cocoa both under its own brand and also for Nestle.[67] Achal Industries has built its cashew processing plant at the Baikampady Industrial Estate in Mangalore.[68] Ideal Ice Cream Factory, situated at Kottara Chowki in Mangalore, manufactures over 40 flavours of ice-creams.[69][70]

Industry Location
Campco Ltd APMC Yard, Baikampady, Mangalore
Achal Industries Industrial Area, Baikampady, Mangalore
Mangala Cashew Industries (DVK Group)[71][72] Padavinangadi, Mangalore
Kalbavi Cashews[73] Industrial Area, Baikampady, Mangalore
Ideal Ice Cream Factory[69][70] Kottara Chowki, Mangalore
Spectrum Industries[74] Yeyyadi Industrial Estate, Mangalore

Cruise tourism

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.[75][76] Foreigners can enter Mangalore through the New Mangalore Port with the help of Electronic visa (e-visa).[77] Cruise ships from Europe, North America and UAE arrive at New Mangalore Port to promote tourism around Mangalore.[78][79]

Startups

Government of India has planned to make Mangalore the first startup district in the country with 20 tinkering labs and incubation centres.[80][81] The startups aim at providing solutions in agriculture, health, education and information technology.[82] Centre for Entrepreneurship Opportunities and Learning (CEOL) - the first start-up incubation centre for Coastal Karnataka is present at Mallikatta in Mangalore city.[83][84] Government of Karnataka has planned to make Mangalore an Animation hub for the State.[85]

Research and Development (R&D) centres

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[86]
  • National Research Centre for Cashew (NRCC) - located at Puttur[87]

Special Economic Zones

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.[88][89]

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.[90]
Infosys - IT&ITES SEZ - 125 hectares Notified and 1st phase operational Infosys Tech. Ltd.[91]
Thumbay, Bantwal, Dakshina Kannada District - IT/ITES SEZ - 10 hectares Formal approval and notified. Under Implementation. B.A.Tech Park Pvt. Ltd.[92]
KIADB - IT&ITES SEZ - 203 hectares Formal approval Karnataka Industrial Areas Development Board[93]
EPIP Indl.Area, Ganjimutt, Mangalore - IT/ITES SEZ - 10 hectares Formal approval Nitesh Estates Private Limited[94]
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.[95]

Fishing

Fishing in Mukka, in Mangalore taluk

Fish is one of the widely consumed food in Mangalore.[96] Old Mangalore Port is the fishing port in Mangalore.[97] The city has an ice factory on the banks of Netravati river and fish meal processing industries.[98]

Traditional commerce and industry

Tile industry

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.[99]

Arecanut industry

Arecanut industries consist of small-scale operations.[100] Arecanuts are cultivated in the hilly regions towards the east of the city.[100]

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