INDUSTRIES


(This Chapter is contributed by Dr. B. R. Rairikar, Principal,
Lala Lajpatrai College, Bombay, in association with Shri K. K. Chaudhari, M.A., Executive Editor and Secretary, Gazetteers Department, Government of Maharashtra.)

BACKGROUND

BOMBAY IS THE INDUSTRIAL AND COMMERCIAL METROPOLIS OF INDIA, and it would be very much realistic to say that Bombay is miniature India. It has now expanded into a very large industrial complex strung out along a sea-board, and is heavily settled throughout its length and breadth by industries and commercial activities on a mammoth scale. In fact it has assumed the character of the industrial and commercial nerve centre of the entire country. It has been a leading centre of the cotton textile industry for a century and quarter, and more recently of the machinery and chemi­cals industries. The cotton textile industry is the prime industry which has contributed to its economic prosperity. The history of the textile industry is, in fact, the history of economic growth of Western India. This pioneer­ing industry accelerated the growth of other industries, and provided an impetus to the growth of commercial concerns and financial institutions. The Bombay Stock Exchange was once dominated by cotton textiles.
The mammoth growth of industries is attributable to the industrial infrastructure facilities in this city. Bombay may be said to owe all its prosperity and importance to the immense advantage accruing from its excellent natural harbour." In fact, it is inconceivable that, in the absence of the harbour, a city could have emerged in Bombay." (C. Rajagopalan, The Greater Bombay, 1962, p. 39) The harbour and Airport of Bombay provide the main link between London and the Far East, which lent it advantages of easy international communication. Internally, it is connected to other parts of India, by the network of two major railway systems, namely, the Central Railway and the Western Railway, which have their headquarters in Bombay. It is brought into close proximity to other Indian cities by the air services of the Indian Airlines. The Bombay Port Trust has also contributed towards the commercial and industrial growth of this city.

Bombay enjoys the benefit of a developed capital market and the head­quarters of many financial institutions and banking system. The share market and network of banks have contributed to the availability of industrial finance right from the last quarter of the previous century. The Imperial Bank of India, and its successor, the State Bank of India, as also the Reserve Bank of India have played an important role in the making of Bombay's industries. The Life Insurance Corporation of India, with its headquarters in the city did not lag behind in this process.

The city owes its industrial oppulence to a class of enterprising and enlightened entrepreneurs, a few of whom are mentioned in the history of cotton textile industry. These men of vision, Parsis, Gujaratis, Maha-rashtrians, Marwadis and Muslims strived for the development of industry. A due credit should also be given to a number of Europeans who not only pioneered some industries but also manned them. The growth of education with the establishment of the Elphinstone College, the Wilson College and the Bombay University, and later, the VJ.T.I. facilitated the availability of educated and trained personnel for industry and commerce.

The cheap hydro-electric energy made available by the generating stations at Khopoli, Bhira and Bhivpuri by the Tatas in the tens of this century also contributed to the immense growth of industries in Bombay. Hydroelectric porwer generated at the very door of Bombay in the hey-days of industrial growth was really a great boon.

From the very beginning of British administration, Bombay emerged as the industrial nerve centre. It became the gateway of India for Western traders, and in a short period developed as the best port on the Arabian Sea coast, the most important centre of commerce, the seat of government, the locus of higher educational institutions, and the major centre of textile industry.

Although cotton textile continues to be the major industry of Bombay, the chemicals and chemical products industry overtook it in the past few years. As at present, the invested capital, output and value added on manufacture in the chemicals and chemical products industry are very much higher than in the cotton textile industry. This point is elaborated in the relevant sections in this chapter on the basis of statistics from the Annual Survey of Industries. Cotton Textile is now suffering from several ailments, a number of units falling ' sick'. The phenomenal growth of the metal products industry, machinery manufacturing and electrical machinery industry ever since the Second World War has added to the importance of Bombay in the country. The petroleum industry, the Bombay High oil exploration project and the petrochemicals complex in Bombay have however elevated the industrial status of Bombay in the Indian economy. These vital industries have attained a unique position for the city in the country's economy.

Like any other human creation there is a black side of a spectacular progress also. The location of industries in Bombay is very defective, and the city is now suffering from many socio-economic ailments, the cures for which are not easy. Industrialisation and urbanisation which are so closely interlinked have bred sordid and squalid conditions of living.

Though the industries are scattered all over the Island, there is a greater degree of concentration in the north. The actual industrial quarter may, roughly be defined as the area enclosed by Victoria road in the South, Reay road and Sewri road in the East, Tilak road in the North and by Gokhale Road (North), Worli road and Haines road in the West and includes sections like Worli, Byculla, Nagpada, Tadwadi, Mazagaon, Sewri, Lalbaug, Parel, Naigaum, and Chinchpokli. The industrial zone so defined is located almost in the geographical centre of the City.

" The location of the industrial zone in the centre of the city has proved to be highly undesirable." (C. Rajagopalan, op. cit., p. 48)

 Dr. P. S. Lokanathan observes, "Bombay city is fast ceasing to occupy that predominant position in the cotton industry which it once held and ' deglomerating' tendencies such as high rents, high rates of wages and relatively high cost of transporting goods to distant inland markets are counteracting the former tendency towards concentration." (Dr. P. S. Lokanathan, Industrial Organisation in India) This is however too extreme a view, and has to be taken at a discount.

Greater Bombay as a separate area unit came into existence in April 1950, when the Suburban District was merged with Bombay city for purpose of municipal administration. Its boundaries were further extended over the Salsette in 1957 upto Dahisar on the Western Railway and upto Mulund on the Central Railway. It now embraces an area of about 603 square kilometres.

A few words about origin of industrialisation in Salsette which now is covered by the Bombay Suburbs. The first industry in the modern sense of the term to be established in Salsette was cotton textiles. In 1910, there were reported to be several mills in Kurla, engaged in the manufacturing of cotton cloth and woollen cloth in steam factories. Kurla is still an important centre of mill industry. In 1929, as many as 148 factories were functioning in Salsette, of which three were cotton mills.

Industrialisation in the real sense may be said to have commenced only after 1930. The variety of industries in Salsette multiplied between 1930 and 1941. There was a rapid increase in the number and variety of indus­tries during the Second World War. According to the records of the Chief Inspector of Factories, there were 926 factories in Salsette in June, 1958.

A few observations are made below on the location of industries in the suburbs, formerly styled as Salsette. The observations are based on personal investigations.

Between Kurla and Mulund several new industries have developed during the last about 30 years. Kurla-Ghatkopar-Vikhroli and Bhandup is mainly an automobile, metal products and machinery industries zone. Further beyond upto Mulund is a zone of chemicals and drugs industries, paints and inks. These two zones have housed several large factories, some of them with foreign collaboration and with giant plants. Chembur and Trombay is restricted industrial area with a cluster of petroleum refineries, a petrochemicals complex, a giant fertilizer plant, a thermal power station and the Bhabha Atomic Research Centre.

Between the Eastern and Western suburbs, a large industrial zone was developed during the fifties and sixties. Unlike the industrial core in the city the industries here are mostly medium sized or small sized, and are located in several industrial estates at Saki Naka, Marol, Powai, etc. It is largely a metal products, machinery, machine tool and electrical machinery zone. A good many chemical products factories and film industry are also located in this area. There are also many giant factories located in this zone. Large machinery and machine tool units and pharmaceuticals have developed along the Kurla-Andheri Road, and particularly at Powai, Marol and Saki. Film industry is localised along the fringe of this zone.

Kurla-Ghatkopar-Vikhroli-Bhandup is however the largest industrial zone in the suburbs. North of the Kurla textile zone, several electrical and engineering factories are located. A relatively cheaper land and nearness to water and power mains have enabled rapid expansion of the suburbs. These newer industrial areas show a greater degree of differentiation according to type and their association with auxiliary industries.

The residential Western suburbs have mainly food processing industries like confectioneries and drinks. However huge plants have been established in recent years at Goregaon, Kandivli, Malad and Dahisar. It is only during the last decade that some big units have been started along the Western Express Highway beyond the Santacruz Airport.

Many of the suburban industries are the result of post-war expansion of the old industrial units in the Island City. Many others have diversified their production, while a majority of them have entered into new avenues of production. There are also many ancillary industries.

This chapter is divided into sections with the objective of furnishing a cohesive and cogent review of industrial growth in Bombay. The first section deals with Industrial Development in Bombay prior to First World War. The second section gives a, narrative of Industrial Development between the First World War and the year 1957. The narrative in this section has been brought right upto 1957, in view of the pattern of data available. Ths year 1957 is significant also because the present territorial jurisdiction of Bombay came into existence in that year.

In the rest of the chapter is given a detailed account of the major irjdustries, followed by their various segments. An attempt is made to classify the industries on the pattern adopted by the Annual Survey of Industries, 1973-74 and 1975-77, conducted by the Government of India. An account of the segments of the major industries is given after that of the major industries. The classification, in a few cases, does not coincide with that of the Annual Survey. The narrative of the industries is attempted to be given in a historical perspective. The Annual Survey statistics cover the census and sample sectors, and represent annual averages during the respective survey periods. Although the analysis of the structure of the various industries is quite exhaustive, the conclusions attempted at some places are by no means claimed to be accurate.

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INDUSTRIAL DEVELOPMENT PRIOR TO WORLD WAR I

The momentous growth of this industrial metropolis of India has a very long history. The first industry in Bombay, in the proper sense of the term, was established by the East India Company in 1676 under patent by the British Crown to the Company on 15th October 1676. The Cotton Textile Industry is however the most important organised industry with the longest history which can be traced to the last quarter of the seventeenth century. Cotton goods constituted one of the oldest exports of India as they formed a large part of the business transacted by the East India Company. In connection with encouragement of cotton and silk weaving in the island of Bombay a letter from the Surat Office of the Company to the Bombay authorities, dated 4th November 1676, directed the latter authorities to invite and encourage weavers from the Deccan to settle in Bombay so as to increase the manufacture of calicos for exports. The Sural Office also desired the Bombay Office to handle this affair very seriously and earnestly by supplying yarn and necessary equipment. (For text of the letter refer Gazetteer of Bombay City and Island, Vol. I, 1909, pp. 461-62. The letter gives clear directives to the Bombay authorities how, they should encourage weaving industry in Bombay and what industry and ingenuity they should employ in that affair which would be well esteemed by the East India Company) By 1676 a regular industry had been established. The Company imported silk and cotton and distributed it to the weavers who worked under a mukadam. In 1683 it was decided to establish a manufactory of knitted stocking. By 1735 the Bombay cloth had earned a considerable reputation. The Council at Surat was directed by the Company in 1735 to further pursuade weavers from Gujarat to settle in Bombay, by giving them incentives of monetary advances and housing. It was in 1758 that the authorities arranged for the immigration of certain Bassein weavers, who were to manufacture goods for Jeddah and other western ports.

The exports of cotton manufactures from Bombay, as also from India, to England began to decline and became quite insignificant soon after the opening of the nineteenth century. This was because England began to manufacture her own cloth and owing to the use of machinery she went rapidly ahead of India. About 1813 the ports of India were thrown open to English merchant adventurers, but protective duties of 70 to 80 per cent were imposed in Great Britain on cotton and silk manufactures from India while some items were totally excluded. This was motivated by exclusive protection to the English industry against Indian goods. English cotton goods now began to be imported into India. The growth of the mill industry in India, especially in Bombay, tended to check its advance to some extent. The first cotton mill in Bombay was projected in 1851 by Mr. Cowasji Nanabhai Davar and commenced work in 1854 (The year of establishment is also mentioned as 1856 in some sources.) as a joint-stock company under the name of the Bombay Spinning and Weaving Company. (The first cotton mill in India was erected on the banks of the Hughli in 1818 near Calcutta.)

By about 1909 the city had nearly 100 cotton mills, and thousands of workers found daily employment in them. But the handmade manu­facture of cloth had yet not been wholly extinguished. Cotton-weaving was a recognised hand industry, especially among the Julahas, who generally wove coloured saris for Indian women. Silk cloth was also manufactured on a considerable scale. The various kinds of brocade known as kincobs, hirnrus, masrus, lapas and tas were worked into saris, cholis, waistcoats, shoulder cloth, pagadis, kamarbands, etc.

The weaving artisans were mainly concentrated in Duncan Road, near Byculla and in the vicinity of Babula Tank (Near J. J. Hospital). Reliable estimates showed that handlooms still used much of the yarn imported into this country and that a large quantity of cheap of cotton goods of various sorts were turned out by the Bombay weavers, both Hindu and Muslims, who were enumerated at 7,471 by the Census of 1901.

A large part of the cloth manufactured by the Bombay mills was dyed and processed locally and exported to the Deccan and Konkan region. The dyers (Rangaris) were mostly Muhammadans from Satara, Kathiawar, Gujarat and neighbouring districts. The Census of 1901 enumerated about 1,200 dyers, including silk dyers in Bombay. Some raw material for dyeing was imported from China. The process of dyeing cotton cloth or thread in various colours was very elaborate. The colours were very fast and exhibited aesthetic sense of the artisan. Naturally, the processed cloth was a choice of the connoisseur. There was a wide range of dyeing processes, such as, kusumba dyeing, yellow dyeing, purple dyeing, green dyeing, black dyeing and indigo dyeing.

Printing of cloth was yet another hand-industry in Bombay, chindari or knotted design, also called knot-dyeing or bandhani was a beautiful method of decorating cotton and silk goods. It closely resembled printing, and it could be inferred that it had its origin in Gujarat, Cutch and Sind. A large number of chindari workers were found in Bombay, their central place of business being near Nail Bazar, though the work was carried on in other parts of the city also.

SALT MANUFACTURE

Salt making is one of the most important and the oldest industries of Bombay. Its geographical condition lends it a natural advantage for the development of this industry. Though the industry has declined and dwindled progressively with the human encroachment on the creeks and estuaries of old Bombay during the last century and a quarter, it was once a prosperous industry in the past. The original Bombay of seven islands had produced considerable quantities of salt which was exported not only to upper India but also in considerable quantities to foreign countries.

The salt-works of the island of Bombay, by the beginning of this century, were situated in a compact group in the north-east corner between Sewri and Sion on the borders of the Bombay and Mahul creeks. In 1872, when the Bombay Salt Department was reorganised, the 21 salt works produced an average of 6,50,000 maunds of salt per annum. In 1889, two new private works were opened, and in 1890 a third, the Wadia Mahal, which was regarded as one of the most important sea-salt works in the Bombay Presidency. About 263 acres of land was granted by Government in perpetuity and rent free for this salt work to Khan Bahadur Jamsetji Dhunjibhoy Wadia in recognition of his long and meritorious service in the Government Dockyard.

In 1908 there were 23 salt-works which constituted the so called Matunga taluka. With the exception of five government salt-works which were farmed, the Matunga works were the property of private persons with limited rights. These persons, 79 in number, were called as Shilotris who belonged to the Prabhu, Parsi, Muhammadan and Indian Christian communities, some of them being wealthy capitalists. The actual workers at the salt pans comprised Agris, Kolis and Indian Christians from Bombay as also Dublas and Kharvas from Surat, who used to come to Matunga during the fair season. (For details of Salt industry refer to the Gazetteer of Bomby City and Island, Vol. I, 1909, pp. 481-84 and to Thana Gazetteer, Vol XIII, Part I,1882, pp. 363-78.)

The salt produced at Matunga was largely exported to Central Provinces, Berar, Bengal, Mysore and the Nizam's Dominions, the bulk of it being consigned by railway from Dadar Station. It was also in much demand in Nasik, Khandesh and Ahmadnagar districts, to a lesser extent in Belgaum, Dharwar and parts of Karnataka. Salt was transported in carts while that destined for Calcutta and the Malabar Coast was transported in boats and steamers with a capacity of 1,000 to 2,000 maunds.

GOLD AND SILVER THREAD MANUFACTURING

Bombay had once a prosperous industry of gold and silver thread manufacturing. There were about 1,000 embroiderers and lace and muslin makers in the city as per the Census of 1901.

OIL PRESSING

Oil pressing in primitive oil presses is an old industry. Bombay con­tained some years ago a few large oil pressing establishments. The industry was mainly confined to pressing of sesamum seed, coconuts and ground­nut. At the beginning of this century there was only one oil-mill worked by machinery.

SUGAR REFINING

Sugar refining was a small industry with 25 factories licensed by the municipality in 1909. Refined sugar was mainly imported from Mauritius. But the Bombay sugar was sent to Baroda, Surat, Bhavnagar, Ahmedabad, Zanzibar and even to China.

BIDI AND SNUFF MANUFACTURING

Tobacco and snuff manufacturers and sellers in Bombay numbered about 2,800 according to the Census of 1901. It was a very prosperous industry employing mainly Kamathi women. It was mainly concentrated in Kamathipura, Falkland road, Duncan road, Grant road, Kalbadevi road and Girgaum. The tobacco was mainly imported from Gujarat, Deccan and Madras.

IRON WORK

Though Bombay had to import all her iron as well as copper from England, great progress had been made in the iron industry. There was hardly any description of iron work which could not be manufactured in Bombay in 1909. The import of kerosene oil had given rise to the new industry of iron foundries, the account of which is given afterwards in this chapter.

WOOD CARVING AND FURNITURE MAKING

This industry was celebrated for the manufacture of carved blackwood furniture which was carried on in Bombay by the artisans from Surat and other places. Screens, teapoys, writing desks, flower-stands and cupboards manufactured in Bombay were of a very elegant appearance and often of exquisite design.

INLAID WORK

Inlaid work, for which Bombay had long been famous, was probably introduced about 1800 a.d. from Hyderabad (Sind). It might also have its origin in the Punjab as it was familiarly known as ' Multan Work'. The industry provided employment to several hundreds of workmen in Bombay. The chief articles made were paper-knives, work-boxes, writing desks, watch-stands and several articles with beautiful patterns. The patterns in common use in Bombay were the circle, the hexagon, the tinkoma gul, compounded of wire, ebony, ivory and stained horn, the gul; and for borders the gandiris, compounded of all the materials, the row of beads, the sankru hansio and the poro hansio. The manufacturers of inlaid work dealt largerly in carved sandalwood boxes from Kanara and Gujarat, and sometimes themselves employed wood-carvers.

COACH FACTORIES

Bombay found a congenial home for coach factories, the first factory being established in 1808 by Pallonji Bomanji Palkhiwalla at Dhobi Talao(He took his surname from the trade in which he was engaged.). There were about three hundred coach factories in Bombay in 1909. (The industry was very flourishing, each palanquin being worth about Rs. 400 to Rs. 600 depending on the quality of decoration. The palanquins were followed by other modes of coaches such as shigram, canoe-shaped phaeton, buggy, landau, brougham, vitcoria and the landaulette.)

The carriages were exported to Kabul, Persia, Singapore, Baroda, Kathiawar and other parts of India. The introduction of motor cars caused a decline in this industry which is hardly surviving today.

LIME KILNS AND BRICK AND TILE MAKING

It may appear fictitious to-day that Bombay had several lime kilns. But it is a fact. There were three kinds of lime kilns in Bombay. One was used for manufacturing lime for whitewashing purposes, another for making lime for masonry works, and the third for lime intended for eating. The lime for eating was prepared from Muscat stone. White­washing lime was prepared from oyster-shells from Ratnagiri and masonry lime from scraps of marble and Porbunder stone.

Bricks and tiles were made in Bombay on a large scale. The Bombay, Brick and Tile manufactory, situated at Sewri, supplied very good tiles and earthen blocks suitable for building purposes. The brick and tile industry provided employment to 800 persons, while the lime kilns engaged 420 in 1901.

POTTERIES

The first noteworthy pottery was opened at the hands of the Governor of Bombay in 1877 at Naigaum road and was known as the Pherozshah Pottery Works, white clay was obtained from Cutch-Bhuj and Jabalpur, and red clay from Kurla. Pottery was manufactured at about 20 places in the north of the island in 1909. The J. J. School of Art Pottery which was made from Santa Cruz and Cutch clay was regarded to possess a high order of merit. The industry provided employment to about 750 workers in 1901.

MARBLE WORK

The pioneers of marble(Though India abounds in marbles of various kinds and shades, most of the marble was imported to Bombay from Italy and other parts of Europe and America in the form of blocks or slabs. The masons of Porbandar have adorned many of the beautiful facades in the city.) industry in Bombay were Messrs. F. Mureglia & Co., Italian by birth, who owned a shop in Fort area. The majority of marble carvers in Bombay were Christians as Hindus believed super-stitiously that this work portends calamities. Marble industry provided employment to 850 persons in 1901.

SOAP MANUFACTURING

The first soap factory was opened at Mahim in about 1879, the same being taken over by a Parsi subsequently. There were 19 soap factories in Bombay in 1909. The principal raw materials comprised castor oil, cocoanut, mhowra seed and caustic soda. Castor oil was used for soft soap supplied to the mills for sizing purposes and also for manufacturing Turkey red oil. Marine soap was manufactured from cocoanut oil, toilet soap was prepared from mhowra seed oil, while tallow was added to give aroma to the soap.

LEATHER INDUSTRY

It is one of the oldest cottage industries, which employed 5,500 workers in Bombay in 1901. Good quality shoes, saddles, bags and oil jars (called dabaro) were made in the European fashion by the city artisans. In earlier times army accoutrements, manufactured in Bombay were supplied to the British troops. Mr. Tanner of Bombay is said to have made a large fortune in this business during the Mutiny of 1857.

Sir Adamji Peerbhoy opened a large tannery and factory, worked  (It was named as Western India Boot and Equipment Factory.) by machinery near Dharavi in 1887 which turned out excellent work. A considerable quantity of tanned leather was exported to Europe and Africa. The chief articles manufactured included saddlery, boots, shoes, belts, trunks, bags and various smaller articles. The factory was managed by European supervisors, and provided employment to 1,000 workers. The leather used was mainly harness leather, bridle leather, hog-skins, calf patent leather, sheep skin, bag hide and gaiter hide. A very little Russian leather was used as the Bombay climate was not suitable for the same. American leather was imported from London.

Besides the industries narrated above, there were several small industries which may appear insignificant in the context of the mammoth industrial growth of this industrial city of today. But they were of immense significance in those times when industrialisation was only in its infancy. Most of them combined industry and artisanship with aesthetic value. Their products were not only useful but were also artistic. A men­tion must be made of the manufacture of sweetmeats with very rich tastes and flavours. Besides the usual ingredients, the sweetmeats contained almonds, pistachios, saffron, cardamom, nutmegs, rosewater, etc., which can hardly be dreamt of today. The Bombay sweets were exported to Europe, Africa, China as also to all parts of India. While sweetmeats makers numbered 350, the sellers numbered 1,400 in 1901in Bombay.

Bakers numbered 1,400 in Bombay in 1901. One of the best known bakeries of old times was established by a Goanese in Old Hanuman Cross Lane in the first decade of the nineteenth century. Besides Goanese, Mughals, Muhammadans and later Parsis, dominated this industry. The Jariwalas engaged in the recovery of gold and silver from old embroidery had a thriving industry in Bombay. They had a perfect technique of extracting the valuable metals from old jari clothes.

Brass and copper craftsmen produced household utensils, lamps, chattis of all shapes and sizes and water pots and lotas of all descriptions. The copper bazar opposite Mumbadevi Tank, was the busiest street in the city in those times as it is today. There were about 4,000 brassworkers and coppersmiths and 5,000 blacksmiths ia Bombay in 1901.

Though sculpture could not be said to be an industry, stone-carving was carried on in the form of architectural ornamentation on a large scale in Bombay. Stone carving was also taught as a subject of studies in the Sir J. J. School of Art.

Then there were three candle manufactories which manufactured pure wax candles for the use of churches, and two others which prepared parafin candles by machinery. Some other industries were engaged in wire-drawing for embroidery and lace work and electro-plating and silver-plating of trays. Their products were valued for the aesthetic sense of the craftsmen. Bombay had also quite a few expert Chinese caneworkers whose products were in demand from the European community in India and the Par si gentry of the city.

FACTORY INDUSTRIES

As stated earlier the history of factory industries in Bombay can be traced to 1676 when the Mint of the East India Company was established. This was followed by establishment of a cotton pressing factory in 1694, which was in the nature of machinery for screwing loose bales of cotton into size suitable for export. These presses were then known as screwing houses, and the machine themselves consisted, in 1809, of a square wooden frame in which cotton was placed surmounted by a beam of great weight which was fixed to the end of a powerful screw. This screw was worked by a capstan in a chamber above to each bar of which there were often 30 men. They turned ths screw with great swiftness at first shouting the whole time, the shouts ending in something like loud groans as the labour became heavier. Bombay city contained 13 cotton presses in 1868. This industry however declined mainly because much of the cotton pressing was done in the cotton growing districts of the Bombay Presidency to save the cost of transport to Bombay. In 1909 there were only seven cotton presses employing 600 operatives.

In 1725 Bombay contained a wind mill for the grinding of wheat, situated on the Esplanade. It existed quite for long but found its closure in 1808.

Industrialisation in Bombay gathered momentum in the latter half of the nineteenth century. The factories gradually eclipsed the handicrafts for which the city was famous at one time.

The period between 1860 and 1865 was one of feverish activity in Bombay, and was marked by progress in every respect. The railway communication of the island advanced noticeably with the opening of the Bhor Ghat on 21 April 1863. The opening of the first section of the Bombay, Baroda and Central India Railway in 1860 encouraged the growth of trade and industry in Bombay. Further encouragement was afforded by the institution of regular service of coasting steamers and by the opening of the Suez Canal. The latter development in 1869 effected a complete revolution in the carrying trade of Bombay, which had upto that date been restricted by a lengthy voyage round the Cape of Good Hope.

The third fundamental cause of the growth of Bombay was the enormous increase in the cotton trade and the subsequent Share Mania(For details of the upheavals which accompanied the Share Mania, see Gazetteer of Bombay City'and Island, Vol. II, 1909, pp. 163-69.) of the years 1861-65. The out-break of the Civil War in America, which at once cut off the supply of American staples gave unprecedented spurt to the export demand for cotton, piece goods and other articles. So sudden was the demand, so high the range of prices, so vast the profits, that a boom set in which gave rise to what was called the Share Mania. Adventurers from all parts were attracted to Bombay, all sorts of ingenious schemes were devised for putting the newly acquired wealth to use. Apart from making a good fortune on the Stock Exchange a good amount of money was invested in establishment of joint-stock companies.

By 1865, there were ten mills working with 2,50,000 spindles and 3,380 looms. They provided employment to 6,600 workers and consumed about 42,000 bales of cotton.

With the rapid growth of industries the Factory Act (The Factory Act originally appears to be applicable to factories employing more than 50 workers) was enacted in 1881 for the first time and it was amended in 1891 to meet the requirements of proper control and direction of industries. In 1908 the total number of factories falling within the scope of the Factory Act was 166 of which half were cotton mills. Most of these factories worked throughout the year and provided employment to 107,739 men, 23,767 women and 4,157 children. (It appears that child labour was not forbidden under the Factory Act of 1881)

The following table shows the classwise total number of factories in Bombay city in 1892, 1896, 1901 and 1908:—

 

1892

1896

1901

1908

Cotton mills

64

68

76

85

Silk mills

1

2

2

2

Woollen mills

2

2

1

3

Hosieries

3

2

2

2

Cotton presses and gins

11

9

8

7

Dye works

2

2

2

4

Flour mills

3

5

5

5

Oil mills

2

2

1

1

Tannery

 

1

1

1

Saw mills and timber works

1

2

2

2

Iron Works and Foundries

8

8

8

15

Locks and cutlery works

 

 

1

1

Metal works

 

 

 

2

Tin works

 

 

1

3

Paper mills

 

 

 

1

Workshops

6

6

1

9

Art manufacture

1

1

7

1

Gasworks

1

2

2

2

Gun carriage factory    

1

1

1

 

Arsenal

1

1

1

1

Mint     

1

1

1

1

Dockyards

4

4

3

3

Printing Presses  

7

9

10

16

Power generator*

 

 

 

1

Bone mill

 

 

 

1

Total   ..

119

128

138

166


(It was owned by the Bombay Electric Supply and Tramway Company)

It would be evident from the above table that by 1908, the most impor­tant industry in Bombay city was the cotton textiles, followed by printing presses, iron works and foundries and workshops. The number of cotton textile mills increased from 64 in 1892 to 85 in 1908 providing an average daily employment to about 101,536 persons. The number of iron works and foundries increased from eight in 1892 to 15 in 1908, and the number of printing presses from seven in 1892 to 16 in 1908. Most of the workshops belonged to the railways. Among the notable iron works was the Byculla Iron Works now known as Richardson Cruddas. Godrej Boyce and Company was the foremost. The Bombay Gas Company came into existence in 1863 and gas light was introduced in Bombay in 1866. These obviously excluded the factories which were not within the purview of the Factory Act as they were working with less than 50 operatives and many of them were without power-driven machinery. Among this category were Sugar factories (8 in number), Rope factory (1), Grain Crushing Mills (6), Carriage Factories (6), Mechanical and Iron Works, Iron and Brass Foundries and Smithies (68), Soda Water Factories (22), Ice Factories (5), Oil Factories (3), Flour Mills (8), Woollen and Cotton Cleaning Factories (6), Saw Mills (4), Printing Presses (39), Lithographic Presses (5), Chemical Works (3), Button Factory (1), Dyeing Works (7) and Miscellaneous (10).

Cotton Textile Mills(Detailed history is given subsequently in this chapter.): The manufacture of yarn and cloth by machinery is the prime industry of Bombay city ever since the dawn of industria­lization. Although to Bengal belongs the honour of opening the first factory for spinning cotton by steam power in India, it is Bombay which has been a home of the industry. The first cotton mill was erected on the banks of the Hughli in Bengal in 1818. The first mill in Bombay was projected by Mr. Cowasji Nanabhai Davar in 1851 under the name of Bombay Spinning and Weaving Company. It commenced work in 1854 (1856 according to some source.) as a joint-stock company. The Oriental Spinning and Weaving Company was opened in 1858 with a capital of Rs. 25 lakhs. By 1865 there were altogether ten mills in the city. They provided employment to 6,600 persons and consumed about 42,000 bales of cotton annually. The industry suffered a temporary glut in 1865-66 mainly due to the abnormal price of raw cotton and also due to the agents and directors of companies having taken large advances from banks at exhorbitant rates of interest and due to lack of demand on account of financial crash after the boom. This was however a very short-lived phase and the demand started pick­ing up in the domestic and European markets from 1867. This could be attributed to the fact that the Bombay goods were durable than the finer and heavily processed cloth produced in England.

Seventeen new mills had been established between 1870 and 1875, thus making a total of 27, working with 7,52,634 spindles, 7,781 looms, the capital investment in the industry being Rs. 2,24 lakhs. It was from 1875 that the cotton industry in Bombay registered a rising trend upto 1898 in which year the number of mills stood at 82. Between 1892 and 1898 the  total number of factories in the island rose from 119 to 136, the increase being almost entirely due to the opening of new cotton mills. It is remarkable that this increase was inspite of the belief that a fall in price of silver had a depressing impact upon trade and despite the fact that there was a rapid glut in Chinese market, which was a principal buyer of Bombay yarn. (The severe epidemic of plague and famine in 1896 exercised a most depressing impact upon the industry for many years. The epidemic resulted into a flight of factory workers from the city who migrated to their native places due to the fear of death due to plague. There was thus an acute shortage of workers for a couple of years)

The condition of the industry was described as' most critical' in 1899; and by the end of that year nearly all the mills were closed for three days in a week while some were wholly stagnant. The number of mills was reduced to 79 in 1904. It was from 1903 that the condition of the industry began to improve and by 1905 and 1906 the industry experienced conditions of revival.

The demand for cloth had increased and the general condition of growth was quite satisfactory. In 1908, there were 85 mills, with 2,734,863 spindles and 35,967 looms. They provided an average daily employment to 101,536 workers, and consumed 1,200,000 bales of cotton.

The Bombay mill-owners had many advantages over their western counterparts. The labour was cheap and abundant. Though the cost of erecting machinery was comparatively high and the quality of raw cotton low, the Bombay cotton had definite advantages.

The Bombay mills produced about 360 million pounds of yarn in the year ending with March 1909. The yarn was partly consumed in the local mills and was partly exported to other parts of India and to China. The total exports to China were about 6,80,000 bales per annum.

The cloth produced in Bombay amounted to about 110 million lbs. The principal varieties manufactured being shirting, long cloth, T-cloth, domestic, sheeting’s, chadars, dhoties, drills, jeans and tent cloth. Coloured piece-goods were also woven. The cotton weaving industry was just emerging by the first decade of this century. It had to face keen compe­tition with imported Manchester goods of a superior quality. But the Swadeshi movement which had taken roots at the beginning of this century had given a distinct impetus to Bombay mills. Before the outbreak of first World War, Bombay cloth was exported to Arabia, Mozambiqe, Zanzibar, Abyssinia (Ethiopia) and Turkey. The Bombay mills, with the exception of a few belonging to private owners, were limited liability, companies, governed under the provisions of the Companies Act of 1866 and 1882. Their affairs were supervised by Boards of Directors and managed by a Secretary or a firm of agents.

The total amount of paid-up capital of the Bombay cotton mills was Rs. 6.5 crores, besides loans and debentures which approximated to an equal amount in 1909. There was a good demand for their shares and financial position quite sound. The mill owners belonged to the Vani, Bhatia, Parsi, Muhammadan and Jew communities. In 1909 the Bombay cotton mills provided employment to about 98,000 workers, most of them were from the Konkan region. Some of the managers and skilled officers, such as weaving and spinning masters were Europeans, while the affairs of many mills were managed by Indians. Occasions of strikes were extremely rare. Hours of york and other conditions were governed under the Indian Factories Act XV of 1881 (as amended by Act XI of 1891).

Silk Mills : Prior to World War I there were two silk mills in Bombay. The Sassoon and Alliance Mill, (It was formerly known as Sassoon Silk Mill, but was then renamed due to amalgamation of Alliance Silk Mill in 1883.) established in 1875 near Victoria Gardens was the largest mill in the Bombay Presidency manufacturing silk yarn and cloth for the Indian and Burma markets. It was a joint-stock concern with a capital investment of Rs.10 lakhs. Its annual production was about 70,000 lbs. and provided employment to 490 workers in 1908-09.

The silk industry had to face competition from Japan. Raw material was mainly imported from China and Bengal. The chief fabrics were saris, skirts, headgear, satin goods, jackets, handkerchiefs, scarves and other dress lengths. Even gold thread was used for costly saris while printing in various colours and designs was also done in these mills.

Woollen Mills: The first woollen mill known as the Bombay Woollen Manufacturing Company was established in 1888 with a capital of Rs. 4 lakhs. It was followed by the Sohrab Woollen and Cotton Mill in the same year. It however shifted to manufacturing of only cotton goods. Prior to the World War I there were only two woollen mills in Bombay, one producing its own worsted yarn from Australian wool and wove woollen blankets etc., while another knitted jerseys and caps from imported worsted yarn.

Hosiery Industry : Hosiery was manufactured in five cotton mills, as well as in two separate hosiery factories. They together manufactured about 3,82,000 lbs. of hosiery goods per annum. The industry however was faced with keen competition from Japanese and European imports. The obsolete machinery was another handicap which halted growth.

Dyeing Industry : There were four dyeing factories in Bombay which dyed cotton yarn from local mills for export to various parts of India and Burma. They provided employment to a large number of workers, the Khatau Makanji Dye Works being the largest factory in Bombay.

Foundries and Metal Works : The history of foundries in Bombay can be traced to the year 1857 when the Byculla Iron Works and Metal Mart was established by Mr. N. C. Richardson. There ware 15 foundries in Bombay in 1909. They provided employment to nearly 5,900 operatives. Richard­son and Cruddas was the largest engineering works in India, affording employment to 2,000 persons. It had two workshops, each containing foundries capable of dealing with the heaviest casting required in trade, patterns shops, smithshops, fitting and machine-shops and a large structural steel boiler department. It turned out steel and other work for the Indian Railways and roof trusses of various types for government offices. The products of this firm were sent to all parts of India, Burma, East Africa and the Straits Settlements.

There were six metal, cutlery and tin works in Bombay, the major among them being Asiatic Petroleum Oil Works, Burma Oil Works and the Godrej, Boyce & Co. The first two factories were mainly tin works while the third one was engaged in black-smithy, cutlery and safe making The six factories provided employment to about 1,210 workers.

Engineering Workshops : There were nine engineering workshops in 1909 including the two workshops of the Great Indian Peninsula Railway and one of the Bombay, Baroda and Central India Railway. The rest of six workshops were owned by the Bombay Port Trust, Bombay Electric Supply & Tramway Co., Municipal Corporation, Bombay Steam Navigation Co., Bombay Electric Co., and Vulcan Works. The nine workshops provided employment to 13,533 workers.

The original locomotive works of the G.I.P. Railway were opened at Byculla about 1854. The workshop was however shifted to a spacious place to Parel in 1878 for expansion, where it is situated even to the present day. With further expansion of railway operations the carriage and wagon shops of the railways were shifted to Matunga by the end of the first decade of the century. The Matunga railway workshop has lived up to its reputation for renovation and even building up of special carriages even up to the present day (1982). The G.I.P. Railway Company's workshops employed more than 7,500 workers in 1909. They were mainly engaged in repair of carriages and wagons, and other railway accessories.

The Parel workshops of the B.B. & C.I. Railway were opened in 1868 after abandonment of the original works at Amroli. The Parel work­shops provided employment to 4,062 workers in 1909. They were mainly engaged in repairing the railway company's rolling stock and in building carriages and wagons of every description. Locomotives were imported from England and fitted up in the workshops. (For details see Gazetteer of Bombay City and Island, Vol. I, 1909, pp. 502-04.)

Paper Industry : The Girgaum Paper Mill, the oldest in India, was established in Bombay in 1862. It was also the only paper mill in Bombay. Its production was to the tune of 250 tons in 1908. It produced various classes of paper and employed about 50 hands. It however suffered from the competition ot the Bengal and Poona Paper.

Gas Work : The Bombay Gas Company commenced the erection of its works in Parel (now in Lalbaug) in 1863. The gas light was introduced in 1866. The machinery was initially of a crude type, and there were no arrangements for purifying the gas. Originally the works contained two gas-holders with a capacity of 1,50,000 cubic feet apiece, and both telescopic with two lifts.

In 1892 a new holder was erected with a capacity of 2,40,000 cubic feet. The bulk of the coal used was Australian and Indian, with an occasional English consignment.

There were 700 public lamps in 1868 which increased to 4,000 in 1894. They were furnished with incandescent burners in 1894 instead of the for­mer flat flame burners. The main pipe from the main works was 24 inches in diameter. The original gas pipes were of lead but were substituted by wrought iron pipes due to frequent damages. The mains were of cast iron with lead joints. The Bombay gas afforded not only the modernisation but also gave fillip to industrial growth in the city.

This was the stage of industrialisation of this great city of India on the eve of the First World War. Though it was not comparable to the state of industrialisation of the principal cities in England and Europe, Bombay laid the foundations of the future growth of industrialisation in India by providing a definite base, and by training technical personnel and skilled workers. The Bombay industry also encouraged the development of a class of entrepreneurs and a capital market which fostered the development not only of the city but also of the country as a whole.

It would therefore, be most pertinent to give a very brief account of the registered companies and their capital during the gestation period of industrial growth in Bombay. The following statement shows the number of registered companies in Bombay and their position of capital during the four decades ending 1905-06 and in 1908-09 :—

Year

No. of Companies

Nominal Capital in Lakhs of Rs.

Paid up Capital in Lakhs of Rs.

Average number of Companies registered annually

1875-76

75

859

356

 

1885-86

147

1028

802

14

1895-96

191

1322

880

14

1905-06

241

1889

1303

14

1908-09

308

2940

1864

 

It would be evident from the above statement that the number of registered companies which was 75 in 1875-76 increased to 308 in 1908-09, thus recording an increase of slightly less than 320 per cent during the period of 33 years. It means that the number of companies increased by about 10 per cent per annum during this period. The greatest increase took place during the period of 10 years from 1875 to 1886 which was to the extent of 96 per cent. This was nothing but spectacular. Corresponding to the increase in companies during this period (320 per cent) the nominal capital increased by 243 per cent and the paid-up capital increased by 248 per cent i.e. virtually of the same order from 1886 onwards.

The distribution of these companies, industry-wise, at the close of the year 1908-09 was as under:—

Classification of companies

No. of companies

Nominal capital (Rs.)

Paid-up capital (Rs.)

1

2

3

4

(I) Banking, Loans and Insurance

18

4,84,05,000

1,38,51,703

                (1) Banking and Loan

9

3,36,95,000

1,26,77,693

                (2) Insurance          

9

1,47,10,600

11,74,010

(II) Trading           

97

7,01,84,000

4,59,30,746

                (3) Navigation

4

1,27,50,000

78,72,338

                (4) Railways and Tramways

9

2,46,00,000

1,87,76,198

                (5) Co-operative Associations

2

3,50,000

91,940

                (6) Printing, Publishing and Stationer:

10

17,90,000

4,47,910

                (7) Others

72

3,06,94,000

1,87,42,360

(III) Mills and Presses

169

13,63,04,625

10,77,15,596

                (8) Cotton Mills       

100

11,43,61,200

9,14,69,011

                (9) Mills for Wool, Silk hemp, etc.

6

47,25,000

46,37,000

                (10) Cotton and Jute Screws and Presse

52

11,54,84,425

95,97,230

                (11) Flour Mills

3

14,70,000

10,06,200

                (12) Saw and Timber Mills

1

8,00,000

5,00,000

                (13) Other Mills and Presses

7

34,00,000

5,06,155

(IV) Tea and other Planting Companies

1

50,000

38,950

(V) Mining and Quarrying

7

2,56,75,000

76,25,380

                (14) Coal

1

3,00,000

2,03,240

                (15) Others

6

2,53,75,000

74,22,140

(VI) Land and Building      

8

1,22,80,000

1,01,81,635

(VII) Ice Manufacturing       .

2

9,77,600

7,06,075

(VIII) Sugar Manufacture

3

9,00,000

2,91,535

(IX) Others

3

1,00,000

96,000

Total  

308

29,48,76,625

18,64,37,620

It would be evident from the above table that the largest number of companies were under the category of mills and presses accounting for about 55 per cent of the total number of companies, followed by trading companies which constituted about 33 per cent of the total number of companies. The mills and presses accounted for slightly more than 44 per cent of the nominal capital and slightly more than 50 per cent of the paid-up capital. Trading companies followed the mills and presses in respect of nominal and paid-up capital.

The industrial growth which took place in the first decade of this century was very rapid as compared to the earlier period. That was why the late Justice M. G. Ranade was tempted to describe this industrial progress as industrial revolution. It was obviously the spirit of Swadeshi and awareness of the necessity of the economic growth of the country which promoted slowly this measure of industrial growth by the beginning of this century.

Top

INDUSTRIAL GROWTH AFTER WORLD WAR I

Three factors contributed to speed up, even though slow in nature, the industrial growth of the country subsequent to the declaration and end of the First World War. These were political, economic and social.

Though the British Government was responsible for the introduction of the system of education, it did not provide enough employment oppor­tunities to the educated people. They, therefore, began to examine the causes of the country's poverty and obviously held foreign rule responsible for economic backwardness. The victory of Japan over Russia further gave stimulus to the thought that if a small Asian power could defeat Russia, it should not be difficult for a country like India to achieve a position of eminence. The Government also wanted the co-operation of the rising capitalist class in India for the effective protection of the British rule. Moreover, the war thoroughly exposed the industrial backwardness of India. To appease the public opinion, the government declared "responsible Government" as an objective of political policy and industrialisation as an objective of its economic policy. With this aim in view, the Government appointed an Indian Munition Board. Its main task was to suggest suitable measures required for the effective handling of the war. The object of the appointment of the Industrial Commission was to explore the possibilities of development of industries in India. The Government accepted, as a token of this policy, the principle of fiscal autonomy convention, and subsequently appointed the Fiscal Commis­sion to consider the ways and means of suggesting the type of protections to be given to Indian industries for their development. The Fiscal Com­mission recommended the policy of "discriminating protection". As a result of the recommendations of the Fiscal Commission, the Tariff Board was appointed to consider the cases of award of protection to Indian industries. It was under the stimulus of protection that some measures of industrialization took place. The Fiscal Commission did not take an integrated view of the entire industrial development of the country. It considered the case of each and every industry separately. However, whatever might be the limitations of the policy of protection, it did begin an era of industrial development in this country. The Bombay industry, in particular, was the greatest beneficiary of the policy of protection.

The commencement of First World War in 1914 had an adverse impact on the growth of new cotton mills in Bombay. The stoppage of machinery shipments from Lancashire to India created difficulties in mill industry in Bombay for many years, and even after restoration of peace in 1918 the high increase in the cost of land and building prevented the construction of new mills. However large extensions to existing plants and machinery were made during this period. (S. M. Rutnagur, Bombay Industries : Cotton Mills, 1927.) A number of private concerns were converted into joint-stock companies. This led to increase in the paid-up capital of many companies to a great extent.

An important event in the industrial sector of Bombay in 1915 was that the cotton mills commenced working with electric power supply from the Tata Hydro-Electric works which was registered in 1910. The boom period for Bombay mills started in 1918 which laid tc extensions in existing mills in the next year. The year 1919 witnessed the formation of the Bombay European Textile Association by Europeans engaged in the management of the cotton textile mills in Bombay to protect their mutual interests and to advance prospects of the industry. The textile experts from Lancashire and other parts of Europe had been instru­mental in educating Indians in spinning, weaving and finishing of cotton goods. The organisation promoted research work relating to the industry and protected the interest of the personnel.

The first trade union of textile workers in Bombay, viz. the Girni Kamgar Sangh, was established in 1919. A good deal of work in the interest of the working class was done by the Bombay Social Service League which came into existence at the inspiration of Mr. Gopal Krishna Gokhale. The League was managed with praiseworthy energy and ability by Mr. N. M. Joshi, a prominent member of the Servants of India Society. Till about 1920, the Social Service League was the pioneer of the interest and welfare of mill workers, and it carried on its work in many mills with the co-operation of the millowners.

The year 1920 was marked by strikes in the textile mills. The strikers enjoyed the sympathies of the leaders of national freedom movement. The incidence of strikes led to the appointment of a Labour DisputeCommittee in Bombay in 1921. Prior to 1925, textile trade unions were not organised properly. They had hardly any sound basis. In 1925, there were five associations. The most important among them was the Bombay Textile Labour Union, while each of the remaining four was called the Girni Kamgar Mahamandalas The four Mahamandals were specified by their localities, viz., Chinchpokli, Prabhadevi, Colaba and Gholapdeo. The Girni Kamgar Sangh (1919) which was brought to life in 1923 was renamed as MahamandaL The formation of the Bombay Textile Labour Union in 1926 was an important event in the history of trade unionism in Bombay.

The regulation of cotton trade in the city was in the hands of many commercial associations until 1917. A single agency for control of trade was introduced by appointment of the Cotton Contracts Committee which was replaced by the Cotton Contracts Board. It was in 1922 that the East India Cotton Association was established after an enactment in the Bombay Legislative Council for the control of Cotton trade of Bombay. The New Cotton Exchange building was opened in December 1925 for proper handling of cotton trade. The institution of a Clearing House in 1918 was another important innovation which had done a lot of good for cotton trade and industry. It was organised on the model of the Liverpool Clearing House. The total amounts handled by the Bombay Clearing House were as under:—

Year

Rupees*

Year Rupees*
1921-22 12,98,94,566 1923-24 9,16,95,270
1922-23 7,69,37,399 1924-25 3,18,59,196

(S. M. Rutnagur, op. cit.)

The cotton market in Bombay was then the largest in Asia.

The Indian Factories Act was amended in 1922, while the Smoke Nuisance Committee was also appointed in the same year in Bombay.

The Bombay textile industry was in the grip of a depression in 1923 and there was a decline in profits. The speculative activities coupled with banking difficulties of mill Agents necessitated further changes in the mill Agencies. The constitution and management of mills in Bombay was much different in 1925 than the pre-war years. There was a trail of strikes in 1923, 1924 and 1925. The strike in cotton mills in Bombay in 1925 was the longest in history upto that year. These events led to the appointment of the Bonus Dispute Committee in 1923, and enactment of the Workmen's Compensation Act in 1925.

Separation of the Bombay Millowners' Association from the Bombay Chamber of Commerce in 1923 was also an important event in the city.The Bombay Millowners' Mutual Insurance Association and the Indian Central Cotton Committee were established in 1923. Excise duty which hampered the interests of the Indian textile industry was repealed in 1925.

The most important events in Bombay industries in 1926-27 were the appointment of the Tariff Board to enquire into the causes of the depression in the Bombay cotton mill industry and the resolution of the Government of India on the report of the Tariff Board. The Board conducted an inquiry in Bombay and Ahmedabad as regards the causes of depression, the competition from Japan and England, the need for protection to cotton industry and the general condition of the industry. The depression was found to be more acute in Bombay than in other centres. The competition from Japan yarn had a depressing effect on the Bombay industry which lost a big market in China. The depreciation of the Japanese Exchange also stimulated exports from Japan to India which was a blow to the indigenous industry. The recommendations of the Board were however deemed to be meagre in regard to the ailments and problems of the industry which needed a more adequate measure of protection than recommended by the Board. The Conference of Millowners, held at Bombay on June 20, 1927 pointed out that the reasons advanced by Government for withholding protection were absolutely untenable and strongly urged for adequate protection to the Indian Textile industry.

The Government of India reconsidered its earlier decision in certain respects and granted some protection to the textile industry. While the plea for imposition of import duty on imports of piece-goods was rejected by the Government, the removal of the imports duty on machinery and materials of the industry as recommended by the Fiscal Commission was accepted. The latter measure was beneficial for the Bombay industry. This encouraged growth and buoyancy in the industry, which continued till 1938. The textile industry had a set-back for a short interval in 1939-40 during which some of the mills preferred to switch over to other avenues of production. Throughout the span of World War II, the cotton textile industry in Bombay experienced buoyancy which could mainly be attributed to the unprecedented demand for cloth in the domestic market as imports were virtually restricted to meet the necessities of the war. There was a huge demand from the British Government to meet the requirements of the British Army. In short, the World War provided an unprecedented impetus to the cotton textile industry of Bombay.

Another important industry which grew in Bombay after the First World War was the pharmaceutical industry. It received encouragement during the First World War due to a steep increase in demand and a virtual stoppage of imports. The cessation of the war sharpened the competition from imports which gave a blow to the infant industry. It was however after 1930 that many new medicinal preparations were manufactured in Bombay, and the industry maintained a steady pace of growth upto the outbreak of the World War II. Many companies of British, German and American origin undertook production in Bombay. A number of new preparations came to be manufactured. The industry enjoyed an unprecedented boom during the war of 1939-45. The country became virtually self-sufficient in the production of vaccines and sera. It was by 1943 that the indigenous producers could meet about 70 per cent of the demand for medicines in the Indian market.

The outbreak of the Second World War encouraged the emergence of two very important industries in Bombay, viz. automobile manufacuring and machine tool production. Both of them are highly sophisti­cated and developed industries which gave a fillip to the growth, of other ancillary industries. Till the beginning of the war all automobiles, parts thereof and machine tools were imported. During the war it was felt necessary to manufacture these vital products to meet the demands of civilians and the armed forces. The Government of India also encouraged the development of these industries by placing orders with Indian manu­facturers and by inviting technical experts from England to guide the Indian entrepreneurs. Firms like Godrej and Boyce and others took benefit of this encouragement and undertook production with technical foreign collaboration. The emergence of the Premier Automobiles at Bombay in 1944 was an important event as it pioneered the growth of the automobile industry in Bombay. However the plans of the Indian manufacturers were mainly confined to assembling as imported products dominated the market upto the dawn of Independence.

The food products industry developed on an organised scale during the inter-war period. With 16 working factories in 1923, the industry made very rapid progress and had 90 factories in 1940 in Bombay. The controls and rationing of food articles during the war and post-war periods gave an impetus to this industry. This can further be elaborated by the fact that due to rationing and controls, the processed foods and canned articles were increasingly used as substitutes for wheat flour and rice. The development of the industry in Bombay during the war was also due to the conditions of boom created by the demand on account of the war and considerable supplies of processed foods. There was some decline in the industry after the cessation cf hostilities. It is also note­worthy that although the number of factories increased from 1945 to 1950 by about 80 per cent, there was a decline in employment as also in the percentage share of this industry in the total factory employment in Bombay. This might be due to the post-war stagnation, a higher degree of mechanisation and labour saving methods of production. The resettlement of displaced persons from Pakistan after partition of India, in Bombay, the employment picture in this industry changed. The displaced persons, popularly known as Sindhis, took up to this industry on a large scale and started many very small establishments in the city, but in larger numbers in the suburbs. Over a period of 35 years from 1923 to 1957, the number of factories increased seventeen times and employment by nine times.

The overwhelming importance of the manufacturing sector in the economy of Bombay has always remained a unique feature of the city. It is therefore necessary to study the changes in the number of factories, volume of factory employment, pattern of variations in factory employment, structure of factory employment and size of factories from 1923 to 1957, for which period the data is uniformly available.

It is however necessary to caution that a broad picture of the evolution of the organised employment can be obtained from 1934 to 1957, while the data prior to 1923 reveals a trend of development of factory employ­ment. This is mainly because the factories were governed by the Factories Act of 1881 (as amended in 1891 and other years) before 1934. Upto that year the Factories Act was applicable to factories employing 20 or more persons and using power. The local authorities had however the discretion to extend the scope of the Act to cover factories employing 10 or more persons and working with or without power. This discretionary power does not, however, appear to have created much impression on the employment picture. In 1938, 287 factories covered under the discre­tionary powers of the local authorities employed only 5,065 persons as against the total of 881 factories providing employment to 2,40,511 workers.

The Factories Act of 1948 was made applicable to units employing 10 or more workers and using power and also to those employing 20 or more without using power. Even this extension in coverage of the Act made a difference of only 3,088 workers out of a total of 3,77,056 workers i.e. less than one per cent in 1949. The employment data over the entire period is therefore broadly comparable. (This analysis is based on the in-depth study of Bombay by Prof. D. T. Lakdawala, Prof. V. N. Kothari, Prof. Sandesara and Prof. P. A. Nair in Work, Wages and Well-being in an Indian Metropolis, 1963, University of Bombay)

As regards the individual industry groups, the classification adopted from 1950 onwards is different from that adopted during the previous years. Naturally the data relating to specific industry groups is incompara­ble. An attempt is made here to rearrange the data relating to some of the industries in earlier years and present the same in a comparable form with the prevailing classification.

It is noteworthy that the period of 35 years which is reviewed is charac­terised by events of great economic significance. The wild prosperity of the early twenties of this century, the Great Depression of 1929-30 which had a world-wide impact, and the subsequent economic revival which characterised the period upto 1939 are all reflected in the employment figures. Then ensued the fateful Second World War and the subsequent boom, and the period of economic planning after Indian Independence.

(I) NUMBER OF FACTORIES

The number of working factories and the factory employment during the period 1923-57 are given in Table No. 1. The number of factories increased from 324 in 1923 to 3,400 in 1957. This meant an increase of more than ten times, which can be rated as an impressive growth in the economy of the city. Except for short-lived aberrations in some years such as, 1927, 1931, 1932, 1946, 1953 and 1954, the rise in number was continuous. Attention may however be drawn to the almost continued increase in the number of factories during 1928-36, when the level of employment was throughout lower than that prevailing in any previous year. Employment provided by factories suffered a decline from 2,10,215 in 1927 to 1,81,265 in 1928 which meant a fall by about 13.8 per cent. This was however accompanied by an increase in the number of factories from 384 in 1927 to 404 in 1928. The Factory employment reached the lowest level of 1,56,914 in 1933 which was lower by about 18.5 per cent as compared to the previous year. Even this decline in employment was accompanied by a rise in the number of factories from 411 to 425. The number of factories in Bombay increased from 472 in 1935 to 515 in 1936, although total employment actually fell from 1,95,696 to 1,87,869. Usually the periods of decline are characterised by decline in employment, particularly in unprofitable concerns. The paradoxical situation however was that employment declined while number of factories increased. The paradox could be explained by the fall in employment in the cotton textile mills in the face of increase in the number of factories in other industries. Actually the employment in cotton textiles declined by 17.3 per cent as compared to only 4.3 per cent in other industries. The employment provided by cotton mills in 1933 was lower by about a quarter as compared to that in 1932. The other industries were however able to maintain a status quo in employment.

The employment in textile factories dwindled by 4.9 per cent in 1936 over that in 1935. The corresponding fall in other industries was very small, viz. 1.6 per cent. The intensity of fall in the textile and non-textile industries was thus very different in Bombay. The fact however remains that there was a decline in the non-textile factories during 1928-36 over that in 1926-27. The number of units in the non-textile sector which was 293 in 1927 increased to 310 in 1928 and to 414 in 1936. Thus the paradox of rise in number of factories in the face of decline in employment still remains to be explained.

TABLE No. 1
Working Factories and Factory Employment in Greater Bombay by Selected Industry Groups, 1923-1957

Year Textile Industries Metal and Engineering Industries Printing, Publishing and Allied Industries Chemical and Chemical products Food Industries Except Beverages All Industries
No. of working factories Employ- ment in reporting factories No. of working factories Employment in reporting factories No. of working factories Employment in reporting factories No. of working facto- ries Employ ment in reporting factories No. of working factories Employ- ment in working reporting factories No. of facto- ries Employ- ment in reporting Emplo- factories Index of yment 1923= 100
(l) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14)
1923 92 1,52,488 92 30,204 35 5,115 9 759 16 1,021 324 2,03,418 100
    (75.0)   (14.8)   (2.5)   (0.4)   (0.5)      
1924 92 1,53,069 91 27,237 47 6,117 17 3,123 22 1,393 361 2,03,641 100
    (75.2)   (13.4)   (3.0)   (1.5)   (0.7)      
1925 93 1,54,364 102 32,861 58 5,866 20 5,471 29 1,489 387 2,07,998 102
    (74.2)   (15.8)   (2.8)   (2.6)   (0.7)      
1926 92 1,54,784 104 33,676 59 5,802 21 6,580 29 1,643 393 2,12,571 104
    (72.8)   (15.8)   (2.7)   (3.1)   (0.8)      
1927 91 1,53,531 97 32,438 55 5,734 19 6,660 27 1,828 384 2,102,15 103
    (73.0)   (15.4)   (2.7)   (3.2)   (0.9)      
1928 91 1,27,003 101 30,516 59 6,047 22 6,129 26 1,996 401

1,81,265

89
(70.1) (16.8) (3.3) (3.4) (1.1)
1929 89 1,26,632 (69.9) 111 30,818 (17.0) 55 5,783 (3.2) 21 6,235 (3.4) 27 1,831 (1.0) 404 1,81,109 89
1930 89 1,34,482 (72.7) 112 26,444 (14.3) 58 5,531 (3.0) 22 6,289 (3.4) 29 1,957 (1.1) 419 1,85,064 91
1931 86 1,31,700 (73.9) 108 23,617 (13.3) 59 5,632 (3.2) 20 4,879 (2.7) 29 1,801 (1.0) 411 1,78,106 88
1932 85 1,47,180 (76.5) 103 21,789 (11.3) 58 5,614 (2.9) 22 5,151 (2.7) 30 1,926 (1.0) 411 1,92,418 95
1933 88 1,11,667 (71.2) 117 22,342 (14.2) 60 5,681 (3.6) 23 4,848 (3.1) 29 1,756 (11) 425 1,56,914 77
1934 82 1,16,723 (70.4) 122 23,763(04.3) 61 6,246 (3.8) 28 5,969 (3.6) 31 1,892 (1.1) 432 1,65,863 82
1935 94 1,41,913 (72.5) 132 25,130 (12.8) 62 6,297 (3.2) 30 6,464 (3.3) 33 2,192 (1.1) 472 1,95,696 96
1936 101 1,34,945 (71.8) 148 25,102 (13.4) 72 6,528 (3.5) 30 5,163 (2.7) 31 2,014 (1.1) 515 1,87,869 92
1937 107 1,57,260 (73.3) 175 26,014 (12.1) 86 7,129 (3.3) 31 3,426 (1.6) 31 2,731 (1.3) 585 2,14,406 105
1938 136 1,76,723 (73.5) 267 29,096 (12.1) 183 8,603 (3.6) 29 4,097 (1.7) 82 3,822 (1.6) 881 2,40,511 118
1939 130 1,54,197 (69.7) 277 30,672 (13.9) 197 8,660 (3.9) 29 3,292 (1.5) 84 4,356 (2.0) 939 (1) 2,21,376 109
1940   136 1,53,264 (66.8) 298 30,089 (13.1) 193 8,464 (3.7) 36 3,535 (1.5) 90 4,410 (1.9) 998 (4) 2,29,267 113
1941   145 2,04,307 (65.1) 329 46,780 (14.9) 194 8,833 (2.8) 46 4,505 (1.4) 73 6,031 (1.9) 1,010 (8) 3,14,045 154
1942   139 2,02,785 (60.2) 362 59,650 (17.7) 196 8,698 (2.6) 51 5,164 (1.5) 95 7,175 (2.1) 1,147 (7) 3,36,975 166
1943   153 2,21,752 (59.1) 394 75,224 (20.0) 185 9,237 (2.5) 63 6,782 (1.8) 94 8,006 (2.1) 1,251 (1) 3,75,502 185
1944   165 2,24,308 (57.2) 434 77,852 (19.8) 198 9,393 (2.4) 68 7,606 (2.0) 97 8,492 (2.2) 1,387 (7) 3,92,453 193
1945   175 2,25,222 (57.6) 465 77,220 (19.7) 207 10,156 (2.6) 75 57,61 (1.9) 99 9,115 (2.3) 1,481 (1) 3,91,081 192
1946   184 2,14,586 (59.8) 477 64,040 (17.9) 210 10,697 (3.0) 75 7,510 (2.1) 94 8,340 (2.3) 1,475 (6) 3,58,658 176
1947   192 2,19,244 (61.0) 489 68,082 (18.9) 223 12,147 (3.4) 72 8,123 (2.3) 108 7,403 (2.1) 1,502 (9) 3,59,380 177
1948   215 2,29,594 (60.7) 573 72,025 (19.0) 250 12,771 (3.4) 104 8,366 (2.2) 115 8,034 (2.1) 1,811 (9) 3,78,440 186
1949   274 2,24,378 (59.5) 743 73,903 (19.6) 321 13,935 (3.7) 152 12,429 (3.3) 173 9,249 (2.5) 2,309 (10) 3,77,056 185
1950   439 (55) 2,27,332 (60.4) 799 (91) 78,693 (20.9) 285 (37) 13,253 (3.5) 146 (16) 11,465 (3.0) 184 (33) 8,033 (2.1) 2,356 (327) 3,76,072 185
1951   427 (68) 2,34,818 (61.0) 802 (110) 73,031 (19.0) 285 (53) 13,970 (3.6) 176 (20) 13,467 (3.5) 199 (35) 8,194 (2.1) 2,532 (431) 3,84,840 189
1952   435 (92) 2,32,621 (61.6) 804 (155) 70,443 (18.7) 294 (54) 14,025 (3.7) 178 (20) 12,460 (3.3) 199 (34) 8,721 (2.3) 2,571 (527) 3,77,460 186
1953   368 (169) 2,33,533 (63.6) 770 (229) 64,072 (17.5) 269 (63) 12,959 (3.5) 161 (30) 13,129 (3.6) 173 (68) 7,758 (2.1) 2,231 (795) 3,66,936 180
1954 430 (70) 2,35,052 (62.2) 784 (95) 72,337 (19.1) 299 (25) 13,814 (3.7) 184 (16) 13,216 (3.5) 215 (28) 8,208 (2.2) 2,561 (353) 3,78,055 186
1955   464 (72) 2,50,197 (60.8) 845 (87) 80,041 (195) 307 (23) 14,594 (3.5) 191 (18) 14,275 (3.5) 233 (42) 8,798 (2.1) 2,751 (358) 4,11,395 202
1956   473 (73) 2,46,950 (58.7) 869 (79) 86,025 (20.4) 315 (27) 15,051 (3.6) 190 (10) 14,936 (3.5) 273 (30) 9,913 (2.4) 2,905 (323) 4,20,991 207
1957   458 (88) 2,43,645 (57.4) 919 (115) 91,405 (21.5) 317 (40) 14,739 (3.5) 195 (15) 15,855 (3.7) 275 (34) 9,997 (2.4) 2,960 (440) 4,24,706 209

Notes.—(1) Figures in brackets in column Nos. 2, 4, 6, 8, 10 and 12 refer to non-reporting factories. The total of reporting and non-reporting factories will give the total number of working factories. For the years 1950 onwards information in regard to closed factories is also available. The number of closed factories was as follows : 1950-68; 1951-45; 1952-103; 1953-19; 1954-185; 1955-173; 1956-68; 1957-138. By adding the number of working factories to the number of closed factories, we can arrive at the number of registered factories.

(2) Figures in brackets in column Nos. 3, 5, 7, 9 and 11 refer to the percentage of employment in each industry to total factory employment in each year.

It is noteworthy that the policy of discriminating protection might have changed the condition of several industries. Excluding the employment in government and semi-government factories, railway workshops, gas production, electricity generation, etc., which were mainly public utilities, we find that in the residual non-textile industrial sector, there was actually an increase in employment from 29,438 in 1927 to 30,385 in 1929, to 33,071 in 1934, and to 35,913 in 1935, with a nominal decline in 1936. The level of employment was at its lowest in 1931. Thus, the period 1927-30 was one of comparative stagnation in the residual non-textile industries. The year 1931 was however the worst. There was some revival in 1932. The employment position was static in 1933 though the number of non-textile factories increased to 302. From 1934, the employment in residual non-textile industrial sector revived rapidly, viz. 33,071 in 1934 to 35,913 in 1935 with a corresponding rise in factories from 315 to 342, respectively. The number of units in this sector increased by 35, though the employment therein fell by 718. The year 1937 witnessed a growth in employment to 38,479 accompanied by rise in number of factories to 438. "It will thus be observed' that the overall employment figures conceal the divergent changes that were occurring in various industries. The increase in the number of units in the face of an overall decline in employment was really in response to mildly expansionary tendencies prevailing in certain industrial sectors of the city."(D. T, Lakadawala, op. cit., p. 624)

(II) VOLUME OF FACTORY EMPLOYMENT

Factory employment registered a growth of more than 100 per cent over the period of 35 years from 1923 to 1957. It rose from 2,03,418 in 1923 to 4,24,706 in 1957. Besides 20,089 workers were estimated to be employed in the non-reporting factories in 1957. Thus actual factory employment was 4,44,795 in 1957 which meant an increase by 118.7 per cent over that in 1923. It is however noteworthy that since the level of employment was at its peak during the war, the level of employment in 1957 was higher by only 13.3 per cent over that in 1944.

The period of 1923-37 was characterised by conditions of near-stagna­tion in the Bombay industries. There was a nominal increase in employ­ment in 1926. The index of employment in 1926 stood at 104 with 1923 as the base year. It was from 1927 that industrial employment suffered a decline which was at its bottom in 1933. The index slumped down to 89 in 1928 without any change in 1929. There was some revival in 1930 which was short-lived. The index which had touched the 88 mark in 1931 registered another revival to 95 in 1932. The level of employment was the lowest in 1933 with the index number falling to 77 and actual employment falling by 46,504 over that in 1923. Though the fall in employment was not uniform in all the industries, the cotton textile industry was the worst hit. The variations in the general index were highly sensitive to the cotton textile industry as it provided the largest size of employment as compared to other industries.

There was marked improvement in the employment situation in 1934 and 1935, the index rising to 95 in 1935. It slumped to 92 in 1936. Thus, during the period 1927-36 the level could never rise over the 1926 level. The year 1937 witnessed a rise to 105 which reached the high mark of 11.8 in 1938. There was however a fall to 109 in 1939. The upheavals in employment were directly related to those in employment in cotton textile.

The Great World War accelerated the growth of employment and the insteadiness in the earlier period was converted into a consistently rising trend. The index of employment which was 113 in 1940 rose steeply to 154 in 1941. This was definitely the highest rate of growth during the period of 35 years under study. In absolute terms, employment rose by 84,778 in 1941 over that in 1940, which meant an escalation by 36.7 per cent in a single year. The upward trend continued till 1944 when the index attained the peak level of 193. It remained unsurpassed for many years to come. Factory employment stood at 3,92,453 in 1944 which was higher by 78,408 or 25 per cent as compared to the level in 1941. Thus, employment in Bombay increased at the rate of about 40,000 per annum over the four year period of 1941 to 1944. There was a very small decrease in the index (192) in 1945, the subsequent year recorded a sudden slump in the index to 176. In absolute terms, employment slumped by 33,795 in 1946 over that in 1944. The situation was almost similar in 1947. This stagnation in industry and employment was a natural corrollary of the cessation of the war. There was a sudden collapse in the cotton textile industry in 1946, which threw about 11,000 workers out of employment therein, while the number of mills was reduced by nine.

The index numbers of factory employment in 1948 and 1949 increased to 186 and 185, respectively. Employment in reporting factories was 3,76,072 in 1950 which was higher by 1,46,805 or 64 per cent as compared to 1940. The tremendous increase in the population of Bombay during the decade 1941-51, viz. from 16,95,168 to 28,39,270, is attributable to the increase in migration of workers to Bombay in search of employment.

The employment picture in the period 1950-53 lacks in clarity because a larger number of factories did not furnish reports. The situation from 1955 to 1957 can be assessed better because the Chief Inspector of Factories prepared estimates of probable employment in the non-responding factories from 1954 onwards. On the basis of the estimates of the Chief Inspector of Factories for the years 1954 to 1957, the employment in non-responding factories has been computed for the entire period of 1950-57, as under (D.T.Lakadawala,op.cit):—

Employment in Factories in Bombay, 1950-57

Year

Employment
in reporting
factories

Estimated
employment in
non-reporting
factories

Total

Index of employment 1923=100

Index of employment 1950=100

1

2

3

4

5

6

1950

3,76,072

12,753

3,88,825

191

100

1951

3,84,840

16,809

4,01,649

197

103

1952

3,77,460

20,553

3,98,013

196

102

1953

3,66,936

31,005

3,97,941

196

102

1954

3,78,055

16,758

3,94,813

196

102

1955

4,11,395

11,785

4,23,180

208

109

1956

4,20,991

8,656

4,29,647

211

110

1957

4,24,706

20,089

4,44,795

219

114

It is evident from the above statistics that the index number of employ­ment surpassed the 1944 level only in 1951. It however declined by one count and remained stable in 1952 to 1954. In 1955, it gained a height of 208, and further rose to 211 in 1956 and to 219 in 1957. However the rate of growth in the period 1950 to 1957 though impressive, compared rather unfavourably with that during 1940-50. It should be admitted that the acceleration in employment during the war period was an uncommon phenomenon. The growth in employment from 1954 to 1957 was characterised by consistency and steadiness.

(III) PATTERN OF VARIATION IN FACTORY EMPLOYMENT IN BOMBAY, 1923-57

The statistics of variations in employment in textile industries; metal and engineering industries; printing, publishing and allied industries; chemicals and chemical products; food industries and total factory employment in Bombay furnished earlier in this chapter are self-evident. It is however of great interest to furnish some remarks on three broad periods, namely, the war-time expansion, the post-war decline and the period from 1953 to 1957.

As stated earlier, the factory employment in Bombay increased by 84,778 in 1941. The share of the textile industry was as much as 51,043 in this increase, while employment in other industries increased by about 33,000 i.e. from 76,003 in 1940 to 1,09,738 in 1941. Thus, while the textile industry registered an increase of 33 per cent, the non-textile sector expanded by 44 per cent. Factory employment increased further by 78,408 during 1942-44. The contribution of the textile industry to this increase was only 20,001, while the employment in the non-textile sector increased by 58,407. This represents a growth of 53 per cent in 1942-44 period over that in 1941. Employment in the non-textile industries thus increased from about 67,000 in 1939 to 1,68,000 in 1944. It appears that the metal and engineering industries exhibited rapid growth in this period, which is evident from the fact that employment therein increased from 30,672 in 1939 to 77,852 in 1944. This was really an impressive rate of growth from any standards. Although the impetus of growth on account of war-time boom ceased in 1945, the metal and engineering industries had firmly established themselves as one of the major industrial sectors in Bombay. The employment provided in the chemical industrial sector which was still in its infancy increased from 3,292 in 1939 to 7,706 in 1944. The factories engaged in army clothing the ordnance factories and the dock­yards, which were defence oriented industries, also registered substantial advance. In fact, the industries in other sectors also contributed to the expansionary phase.

In the nature of things, there was a sudden recession in factory employ­ment, by 32,423, in 1946 which could be attributed to the stagnation after the war. The stagnation was more marked in the metal and engineering industries as the employment therein receded by 13,180. The fall in employment in cotton mills was comparatively less severe, viz. by 10,636. The recession in the metal and engineering sector continued till 1949. In 1950, there was a short-lived revival and the size of employment therein exceeded the 1944 level. But it was followed by a relapse, and it was only in 1955 that employment exceeded the 1944 and 1950 level. This sector of industries has been steadily progressing since then.

The third period from 1953 to 1957 witnessed fluctuations in the textile industry which was fraught with inherent problems due to lack of moder­nisation and replacement of machinery. The chemical industries showed a slowly rising trend, while employment in metal and engineering advanced from 72,000 in 1954 to 91,000 in 1957.

(IV) STRUCTURE OF FACTORY EMPLOYMENT, 1923-57

The constraints of changes in classification of industries from time to time make it rather difficult to compare the structure of employment in one period with that in another. A broad comparison is however possible by rearranging the data relating to earlier years from some of the industries with the 1950 classification. The comparative data from 1923 to 1957 for the five major groups of industries in Bombay, namely, textile industries, metal and engineering industries, printing and publishing industries, chemical and chemical products, and food industries, except beverages, are furnished in Table No. 1.

These five groups of industries which accounted for 93.2 per cent of total factory employment in 1923, employed about 88.5 per cent of factory workers in 1957. It can be deduced that the miscellaneous industries progressed more during the period.

The textile industry continued to be the largest single industrial sector throughout the period under review. It however tended to decline in importance; though Bombay is still regarded as the home of the cotton textile industry. It provided employment to about 75 per cent of the industrial labour in 1923, which percentage declined to 70 per cent in 1939, to 60 per cent in 1946 and to about 57.4 per cent in 1957. It is interesting to note that though it enjoyed buoyancy during the war period, its share in the industrial employment in Bombay declined during the same period.

The importance of the other groups of industries increased relatively, the principal recipient being the group of metal and engineering which provided employment to 21.5 per cent of the industrial labour in 1957 as against 14.8 per cent in 1923. "Their rise was principally a war and post-war phenomenon." Its share in industrial employment was 19.8 per cent in 1944, and though the cessation of war gave it a blow, it progressed in subsequent years. It accounted for more than 21.5 per cent of the industrial employment and ranked the second largest industrial sector in 1957 in Bombay.

The printing and publishing industry employed 3.5 per cent of the workers in 1957 as against 2.5 per cent in 1933. The growth of this industry in terms of percentage growth in employment, viz. by one per cent, over a period of 35 years is by no means impressive. Chemicals and chemical products showed much greater progress. The food industries except beverages improved their position from less than one per cent at the beginning of the period to 2.4 per cent in 1957. " It may be concluded that the old established industries such as textiles were relatively declining while the non-textile industries in general were growing in importance." (D. T. Lakadawala, op. cit., p. 634.)

(V) SIZE OF FACTORIES

The average size of a factory as per the employment criterion is an important aspect in the study of industries. As per this criterion, every factory provided employment to 143 persons on an average in Bombay in 1957. A factory in the metal and engineering industry provided employment to 100 persons on an average. The changes in the pattern in this respect from 1951 to 1957 are given below:—

Size of Reporting Factories and Employment in them, 1951 and 1957

Size-Group

1951

1957

Reporting factories
Reporting factories

No.

Employment

No.

Employment

1

2

3

4

5

Less than 10

307 (12.1)

2,082 (0.5)

306 (10.3)

2,324 (0.5)

10-19

713 (28.2)

10,058 (2.6)

957 (32.3)

13,358 (3.1)

20-49

707 (27.9)

22,272 (5.8)

872 (29.5)

27,799 (6.5)

50-99

361 (14.3)

24,139 (6.3)

363 (12.3)

25,146 (5.9)

100-499

319 (12.6)

63,571 (16.5)

347 (11.7)

72,978 (17.2)

500-999

57 (2.3)

52,231 (13.6)

34 (1.1)

24,186 (5.7)

1,000-4,999

61
(2.4)

1,67,557 (43.5)

70 (2.4)

1,82,462 (43.0)

5,000 and above

7 (0.3)

42,930 (11.2)

11 (0.4)

76,453 (18.0)

Total

2,532 (100.0)

3,84,840 (100.0)

2,960 (100.0)

4,24,706 (100.0)

It is evident from the above statistics that the proportion of small-sized factories (i.e. those employing less than 100 persons) had remained almost unchanged, with a marginal increase from 82.5 per cent in 1951 to 84.4 per cent in 1957. The proportion of medium-sized factories (employing 100 to 999 workers) declined from 14.9 per cent to 12.8 per cent. The proportion of large-sized factories employing 1,000 and above remained unchanged. It must however be noted that the proportion of employment in large-sized factories increased from 54.7 per cent in 1951 to 61 per cent in 1957. This increase was at the cost of the medium-sized factories wherein the proportion of employment declined from 30.1 per cent to 22.9 per cent.

Besides the factories registered under the Factories Act, there was a considerable number of small units which were registered under the Bombay Shops and Establishments Act. A large proportion of these units were engaged either in production of consumer goods and ancillary parts required by factories. In the nature of things, this was essentially a self-employing sector and the average size of the unit was rather small.

WARD-WISE DISTRIBUTION OF FACTORIES AND EMPLOYMENT

Location of industries in a metropolis like Bombay is an important aspect in the study of industrial development and related problems of the city. The pattern of location of industries in Bombay is very defective. The city appears to be the result of blind growth with no control on the location of industry in the past. Consequently it is found that in predominantly residential areas about one-fourth of the buildings are of non-residential type. (C. Rajagopalan, op. cit.)The location of the industrial zone in the centre of the city has proved to be highly undesirable. The most important residential areas of the city are situated immediately to the north and south of the industrial quarter. Since the predominant character of the wind in Bombay is north-north-east and south-south west-west, the smokes, fumes and vapours emanating from these industries tend to exert a deleterious effect on the health of the residents on either sides. (Ibid.)

There has been a wide realization that the haphazard growth of this city has to be stopped and that a strategy of scientific town planning has to be launched. The gravity of the situation demands a purposeful strategy for relieving the congestion and prevention of further haphazard growth. It is therefore of great interest to study the existing pattern of ward-wise location of factories and to measure the degree of concentration of indus­tries in various wards. With this purpose in view, we have based our narrative of ward-wise distribution of factories on the study by the Bombay University School of Economics. ( D. T. Lakadawala, op. cit.) This is quite an indepth study and there is no parallel to it, particularly for the period covered by it (1956). The ward-wise distribution of factories and employment were worked out on the basis of addresses of factories as in the registers of the Chief Inspector of Factories in the year 1956. The classification of wards was as under :—

Ward                      Areas

A             ..              Colaba, Fort, Esplanade.
B             ..              Mandvi, Chakla, Umbarkhadi, Dongri.
C              ..             Khara Talao, Kumbharwada, Bhuleshwar, Crawford Market, Dhobi Talao, Fanaswadi.
D             ..              Khetwadi, Girgaum, Chowpati, Walkesliwar, Mahalaxmi.
E              ..              Tardeo, Mazagaon, Tarwadi, Nagpada, Kamathipura, Byculla.
F              ..              Parel, Sewri, Naigaum, Matunga, Sion.
G             ..              Dadar, Mahiin, Prabhadevi, Worli, Chinchpokli, Love Grove.

Ward-wise Distribution of Factories and Factory Employment, 1956

Ward

 

No. of Factories

Employment

A

 

211

14,750

 

 

(6.5)

(3.4)

B

 

162

6,634

 

 

(5.0)

(1.6)

C

 

231

4,591

 

 

(7.2)

(1.1)

D

 

489

23,016

 

 

(15.2)

(5.4)

E

 

656

91,548

 

 

(20.4)

(21.3)

F

 

326

1,00,994

 

 

(10.1)

(23.4)

G

 

408

1,27,289

 

 

(12.7)

(29.6)

 

Suburbs 

745

60,825

 

 

(23.0)

(14.2)

 

Grand Total 

3,228

4,29,647

 

 

(100)

(100)

[Figures in brackets indicate percentages.]

The data refer to the working factories i.e. reporting as well as non-reporting factories. Employment data are inclusive of estimated employment in non-reporting factories.

(I) NUMBER OF FACTORIES

Of the 3,228 working factories in Bombay, 2,483 or about 77 per cent were distributed in the seven wards of the city and island and 745 or 23 per cent were located in the suburbs. The highest concentration of the factories in the city area was in the E ward where 656 or 20.4 per cent of the total factories were localised. F and G wards housed 326 and 408 factories or 10.1 and 12.7 per cent of the factories, respectively. Factories did not find a congenial home in A, B and C wards. Of these A ward housed mainly offices of government and commercial firms and banks, while B and C Wards had a number of shops and establishments. These three wards accounted for only 18.7 per cent of the factories. The average size of a factory in A, B and C wards was much smaller as compared to E, F and G wards. Thus in A, B and C wards the factories were not only fewer but also smaller. This is attributable to the fact that these wards are typically office, shop and commercial areas where the industrial units found it extremely difficult to obtain the required space at competitive rates. The chief industrial centres of Bombay were the D, E, F and G wards where as many as 1879 factories were concentrated. They accounted for about 60 per cent of the factories in Bombay. Among these wards, the highest concentration of industries was in E ward with 656 factories.

“This overall pattern of location held true for almost all industries, taken individually. Conspicuous exceptions were however provided by the tobacco, rubber and rubber products, non-metallic mineral products and cinema studios, where more than half of whose units were located in the suburbs. Printing, publishing and allied industries were another exception. About 60 per cent of the units in this group were equally distributed between A and D wards. Of 211 factories situated in A ward, as many as 104 or nearly half of the factories were printing, publishing and allied industrial units. Thus the typical industry of A ward was printing, publishing, etc. This different pattern of concentration of the printing and publishing industry may be explained largely by the fact that proximity to offices and trading concerns which are its chief customers is an important factor in the locational pattern of this industry and that many important offices and trading concerns were mainly located in A ward. Units engaged in leather and leather products and the products of petroleum and coal were mostly located in F ward. The miscellaneous industrial units were fairly well distributed among the various wards of the city, but showed a good deal of concentration in the suburbs where 35.5 per cent of the units were situated. Suburbs also claimed a fair share of the textile units amounting to 32.6 per cent or 178 of the total 546 textile factories. Lastly, we may draw attention to an almost complete absence (in 1956) of gins and presses, footwear and other wearing apparel group of industries, printing presses, leather and leather products industries and laundries in the suburbs. This then is the broad pattern of distribution of industrial units in Greater Bombay. However, in order to obtain the true picture of concentration, it is necessary to examine the distribution of factory employment as between various areas." (D. T. Lakadawala, op. cit.p 668)

(II) FACTORY EMPLOYMENT

It can be observed that the pattern of distribution of employment differed from that of the factories. The areas of concentration of factories were not necessarily the areas of concentration of employment and vice versa. The lack of co-relation between the distribution of factories and employment will necessitate a rather detailed study of the size of factories in various areas of Bombay which will be taken up subsequently. The broad features of the distribution of employment reveal some interesting facts. The suburbs which were not highly industrialized in 1956 as they are today, had 23 per cent of the factories providing employment to 60,825 or 14 per cent of the total factory employment in Bombay (viz. 4,29,647). It is evident from this fact that the factories in the suburbs must be comparatively small in size. The suburbs housed mainly factories engaged in the manufacture of chemicals and chemical products, small textile units, basic metal industries and miscellaneous industries. Most of these units were established either during or after the World War II. Of the industries in the suburbs, the textile units provided employment to 17,382 workers, which were followed by transport, the equipment manufacturing factories with 6,753 workers; non-metallic mineral products units employing 5,808 workers; metal products (except machi­nery) units with 4,721 workers and machinery units with 4,596 workers in 1956. The other factories in the suburbs were very small in size.

In the city island, the largest proportion of factory employment was found in the G ward where as many as 1,27,000 or 29.6 per cent of the factory workers were employed. It may be recalled that only 12.7 per cent of the factories were located in the G ward. It is thus obvious that the factories in G ward were of a larger size. This is attributable to the fact that this ward comprising Dadar, Mahim, Prabhadevi, Worli, Chinchpokli and Love Grove housed a large number of cotton textile mills which employ a large number of workers. The 111 textile units in this ward provided employment to 1,00,535 workers. The textile units were followed by those engaged in manufacture of transport equipment, which were 12 in number employing 7,872 workers. The higher proportion of employment per factory in the G ward was attributable mainly to the preponderance of cotton textile mills and transport equipment factories. It is clarified that the development of drugs and pharmaceutical factories in this ward was mainly in the years subsequent to 1956.

In regard to the magnitude and the proportion of factory employment therein, the E and F wards were also important centres of industrial activity. The E ward comprising Tardeo, Mazagaon, Tarwadi, Nagpada, Kamathipura and Byculla housed 656 or 20.4 per cent of the factories in Bombay. They provided employment to 91,548 or 21.3 per cent of the factory workers in Bombay. This ward had 115 textile factories employing 59,601 workers. It was the textile sector which immensely contributed to the importance of this ward as a centre of industry. The textile sector was followed by 13 factories of transport equipment which provided employment to 6,260 workers.

As between the E and F wards, the F ward exhibited a higher degree of industrialization in regard to factory employment, though not in regard to number of factories. The F ward comprising Parel, Sewri, Naigaum, Matunga and Sion had 326 or 10.1 per cent of the total number of factories which provided employment to 1,00,994 or 23.4 per cent of total factory workers. Besides being a highly industrialized ward, the average size of factories in these localities was higher than that in E ward, and almost equal to that in G ward. The average employment per factory in F and G wards was to the extent of 311. The higher percentage of employment in F and G wards was mainly due to the preponderance of cotton textile mills in these areas. The F ward contained 46 textile units which provided employment to 61,535 workers. It is obvious that the textile units were large sized ones. They were followed by factories manufacturing transport equipment which, though six in number, employed 12,358 workers.

The highest concentration of industries was in E, F and G wards which accounted for nearly 75 per cent of the total factory employment, though they had only 43 per cent of the total number of factories. These areas provided a congenial home to 1,380 factories providing employment to 3,19,831 workers. Thus, 3,19,831 workers of the total factory workers in Greater Bombay (4,29,647), were in the industries in these three wards.

A, B, C and D wards were comparatively unimportant adding only 11.5 per cent of the total. Among these four wards D ward was slightly important as it accounted for only 5 per cent of the total factory employ­ment, although 15 per cent of the factories were located in that area. Almost all the industries were fairly well represented in D ward. There I was, thus, a lack of correspondence between the proportion of factories and employment. This was still more striking in case of C ward, where 7.2 per cent of the factories accounted for the insignificant proportion of total employment amounting to only 1.1 per cent.

It is noteworthy that the overall pattern of distribution of factory employment was affected by the location of the textile mills which accounted for 58 per cent of the total employment. A remarkable feature of the study of location of industries in Bombay is the heavy concentration of textile employment in E, F and G wards which accounted for nearly 90 per cent of the textile employment in 1956. G ward alone accounted for 40 per cent of the textile employment. It was mainly a textile area as nearly 80 per cent of the factory workers employed therein were working in textile factories. Industries other than textiles showed a much less concentration, although even therein E, F and G wards accounted for slightly-more than 50 per cent of the employment. The suburbs had nearly 25 per cent of the employment in non-textile industries.

In E, F and G wards a majority of the workers were employed in textile industries, while in the other areas of the city a majority of the workers were employed in non-textile industries. The share of textile employment in A, B and C wards was insignificant. It may therefore be concluded, "that the disproportion between the distribution of factories and factory employment as between various areas which we noted earlier must be the consequence of distribution of textile industries which are essentially large-scale in nature "(D. T. Lakadawala, op; cit, p. 668)

(III) AVERAGE SIZE OF FACTORIES

Judged from the criterion of employment, an average factory in the city island having 148 workers was much larger in size than its counterpart in the suburbs employing 82 workers. The average factory in Greater Bombay employed 133 persons in 1956. The difference in regard to textile factories was particularly striking whereas the city factory was nearly six times in size in comparison to the textile factory in suburbs. This can be explained by the fact that most of the oldest cotton mills which had a scope for gradual expansion were concentrated in the city. In contrast to textile factories the size of metal and engineering, food and other factories was larger in the suburbs.

In the city area, an average factory in F and G wards employed the largest number of workers, namely 310 and 312, respectively. The smallest averages of 20, 41 and 47 were found in C, B and D wards, respectively. It is also interesting to note that the highest averages in almost all indus­tries except printing and publishing were found in F and G wards. It can therefore be deduced that larger sized factories found a more convenient location in these areas, possibly due to availability of cheaper and ampler space, particularly in the initial stages of development of industries in Bombay.

In 1941; the industrial structure of Salsette was comprised of the following industries:—-

Bandra .. Cigarette factory, Dyeing works, Chemical works and Tanneries.
Andheri                 ..      Stone quarrying, Biscuit and Peppermint factory, Button factory, Soap factory,                                                          Tobacco factory, Canvas shoe factory, Match factory and manufacture of moulded ware.
Chakala                 ..     Stone quarrying and Fire works.
Malad                   Manufacture of rubber toys,
Kandivli              ..              Manufacture of umbrella handles.
Kanheri                 ..              Hosiery works.
Bhayandar            ..              Salt manufacturer
kurla     ..              Spinning  and  Weaving  mills,  Match  factory  and manufacture of carpets.
Ghatkopar             ..              Canvas belt factory, Photo litho art press and Camphor factory.
Hariyali                 ..              Machinery repairing works, Paper and board mills and Metal works.
Mulund                  ..    Photo litho  and metal printing works, Grinding and machinery works and Cement works.
Kopri      ..                   Stone quarrying.
Naupada                 ..              Match factory.

In the course of less than two decades following 1941, both the number and variety of industries in Salsette had grown remarkably. According to the records of the Chief Inspector of Factories, there were in all 926 factories in Salsette in June, 1958. Of these 28 factories had been closed down and 187 did not respond. The total number of responding factories for which employment data are available, therefore, worked out to 711. These 711 factories employed, on an average, 65,000 workers daily.

The rapid increase in the number and variety of industries can be ascribed to the effects of the Second World War. In spite of the large area of Salsette, its industries scarcely amounted to three-tenth of that of the City, while the industrial workers formed a still smaller proportion.

As regards the relative importance of the different industries, the highest percentage of industries and industrial workers, viz. 20.7 per cent and 26.2 per cent respectively, belonged to the textile group. Next in order of descending importance ranked non-metallic mineral products (except products of petroleum and coal), transport equipment, chemicals and chemical products, metal products (except machinery and transport equipment), basic metal industries, machinery (except electrical machinery), products of petroleum and coal, food except beverages, electrical machinery, apparatus, appliances and supplies, rubber and rubber products, which together accounted for 58 per cent of the industries as well as of industrial workers.

The two industries, viz. processes allied to agriculture and tobacco were absent in Salsette. Factories of beverages, furniture and fixtures, leather and leather products (except footwear), water and sanitary services and personal services were a few in number. They were hardly one per cent of the total industries and industrial workers.

Thus the most important industries of the Salsette were textiles, chemicals, rubber, minerals, metals, machinery and transport equipment. These industries are usually classified as heavy industries, as they are noisy, noxious and as a rule require large ground space. Since these heavy industries accounted for as much as 80 per cent of the total industrial establishments and five per cent more of the industrial workers, the general complexion of Salsette’s industrial structure could be said to be predominantly heavy.

TABLE No. 2
NUMBER OF INDUSTRIES AND WORKERS IN SALSETTE, 1958

Classification

No. of factories

No. of employees

Average
size of
a factory.

Processes allied to agriculture

..

..

..

Food (except beverages)

41

2,170

53

Beverages

2

58

29

Tobacco

..

..

..

Textiles

147

16,906

115

Footwear,  wearing  apparel and  made-up textile goods

4

106

26

Wood and cork (except furniture)

13

736

56

Furniture and fixtures

2

49

24

Paper and paper products

6

608

101

Printing, publishing and allied industries

9

280

31

Leather and leather products (except footwear)

2

61

30

Rubber and rubber products

31

1,439

46

Chemicals and chemical products

79

4,989

63

Products of petroleum and coal..

9

2,418

268

Non-metallic   mineral  products  (except products of petroleum and coal)

99

7,975

81

Basic metal industries

31

3,651

118

Metal  products  (except  machinery  and transport equipment)

32

4,054

127

Machinery (except electrical machinery)

33

3,309

100

Electrical machinery, apparatus, appliances and supplies.

20

1,887

94

Transport and transport equipment)

20

6,083

304

Miscellaneous industries

25

1,488

59

Electricity, gas and steam

3

145

48

Water and sanitary services

1

26

26

Recreation services (cinema studios)

14

1,334

95

Personal services  (laundries,  dyeing  and cleaning).

1

30

30

Unclassified

87

5,176

59

Total

711

64,978

91

Source.-Office of the Chief Inspector of Factories, Bombay.

Top

PICTURE OF INDUSTRIAL GROWTH

As stated earlier Bombay is the industrial and commercial metropolis of India. It occupies a unique place in the industrial economy of India as diverse industries have grown and expanded here. The genesis of many industries in India is traceable in this city. A major sector of industries in Maharashtra is concentrated the metropolis, while the growth in the peripheral areas and in Pune belt is mainly an expansion of the growth pole in, Bombay, It is therefore very interesting to study the growth of industrialisation in this city. The Annual Survey of Industries conducted by the Government of India whph is the most authoritative source of data enables us to analyse the important characteristics of industries. As per these statistics there are about 6,048 factories registered under the Factories Act which provide employment to 6,21,495 persons in Greater Bombay. The total value of their output is as high as Rs. 43,49,58.02 lakhs, the value added on manufacture beingn Rs.9,42,11.69 lakhs. The important characteristics of industries in Greater Bombay district as per the Annual Survey of Industries, 1973-74 and 1975-77 are given below.(The statistics are supplied the Directorate of Economies and Statistics, Government of Maharashtra) The figures reveal the annual averages in the respective survey periods.

TABLE No. 3
IMPORTANT CHARACTERISTICS OF INDUSTRIES (ESTIMATED) IN
GREATER BOMBAY AS PER THE ANNUAL SURVEY OF
INDUSTRIES, 1973-74 AND 1975-77


(Figures of Rs. in lakhs)

Item

1973-74

1975-77

1. No. of estimated factories

5,874

6,048

2. Fixed capital (Rs.)

11,32,43.89

8,24,35.32

3. Working capital (Rs.)

6,89,58.14

6,84,82.80

4. Capital investment (Rs.)

20,51,28.74

18,80,89.37

5. Outstanding loans (Rs.)

N.A.  

9,86,40.96

6. Man-days worked (No.)

N-A.

19,00,58,453

7. All workers (No.)

5,53,418

4,80,970

8. All employees (No.)

6,74,797

6,21,495

9. Wages to workers (Rs.)

2,61,60.19

3,10,36.43

10. Total emoluments (Rs.)

405,41.29

5,15,14.43

11. Fuel consumed (Rs.)

N;A.  

1,85,52.71

12. Material consumed (Rs.)

N.A.

25,77,44.33

13. Other inputs (Rs.)

N.A.

5,61,85.49

14. Total inputs (Rs.)

22,81,19.97

33,24,82.53

15. Plant & Machinery (Rs)

N.A.

13,02,44.83

16. Value of products (Rs.)

N.A.

37,29,14.83

17. Other output (Rs.)

N.A.

6,20,43.19

18. Total output (Rs.)

32,00,09.79

43,49,58.02

19. Depreciation (Rs.)        

N-A.

82,63.80

20. Value added (Rs.)

8,29,77.42

9,42,11.69

21. Factory payment (Rs.)

N.A.

1,50,57.19

22. Net Income (Rs.)      

NA.

7,91,54.50

Top

COTTON TEXTILE INDUSTRY

The cotton textile industry is the prime industry of Bombay which has contributed immensely to the economic prosperity and social advancement of this metropolitan city of India. The enormous expansion of Bombay's industry and trade and her prosperity have mainly been dependent upon the spinning and weaving factories and on their impact on the economic welfare of her inhabitants. The history of the textile industry of Bombay is, in fact, the history of economic growth of Western India, and her prosperity.

The mill industry in Bombay ever since its inception about 130 years ago has remained the foremost indigenous industry of India. It provides employment to about two and a half lakhs of persons in the city, at present. Bombay alone employs a little less than half of the industrial workers employed in the cotton mill industry of India. Besides its potentialities as regards employment, it encouraged the growth of many ancillary industries, such as textile machinery manufacture, engineering workshops, packaging units, manufacture of dye-stuffs and chemicals and many others. Its role in the development of this city is more or less of a pioneering one, which has accelerated the growth of many other industries It also provides an impetus to the establishment of many commercial concerns, managing agents and financial institutions. The Bombay Stock Exchange was once highly dominated by this industry. According to one estimate, the cotton textile industry, accounts for nearly 20 per cent of the value of industrial production in Bombay.

The factors contributing to the localisation of the cotton textile industry in Bombay are economic, geographic, as also social. Bombay, a fine natural harbour oh the western sea-board, afforded excellent marine transport facilities to other ports in India and those in African, Asian and European countries. The important factor which helped the initial concen­tration of the industry in Bombay was that the city enjoyed excellent transport relations both in regard to raw materials kind consumers markets." Owing to its insular position it enjoyed the advantages of cheap sea-freights on import of machinerymill stores and other accessories. Besides, being the important junction of trunk railways. Bombay Was connected well with the interior markets of raw cotton and piece goods; The policy of the; railways to charge lower rates of freight from and/to the ports increased the transport advantages of Bombay over, other inland towns, In the early days of the cotton mill industry the to yarn with China offered additional incentive for concentration of the industry in the city.

The growth of the industry in Bombay also owes immensely to a pioneer­ing class of men with amazing commercial carrier, vast financial resources and considerable experience of business management and organisation. Men like Cowasji Davar, Maneckji Petit, Din shaw Petit, Jamshetji Tata, Khatau Makanji, Morarjee Goculdas and a galaxy of wealthy Parsis and Bhatias ventured on mill building with conspicuous success. (Most of the promoters of the industry did not have higher University education. But they had an enterprising career and most of them took part in public affairs and municipal government.) A number of indigenous bankers and banking institutions have played an important role in the growth of the industry. The infrastructure which was so very abundant in Bombay was not easily available at other centres. Technical and professional services too were easily available, as also plentiful supply of cheap and skilled labour from neighbouring districts of Konkan, Satara and Sholapur. The humid climate of Bombay offered yet another advantage as in spinning and weaving processes the fibre becomes more tenacious due to moisture. The availability of raw cotton from the hinter­land in Maharashtra and Gujarat also helped growth of the industry. A fortutious combination of all these factors led to the phenomenal development of the industry in Bombay till the twenties of this century.

A study of the locational trends in the industry in India reveals the relative decline in the predominant position of Bombay and the relative spreading out of industrial activity in more and more interior regions. The reasons for the dispersal of the cotton textile industry are as under. The initial dispersal of the industry was mainly due to the development of means of transport in the interior regions. It was only after a network of railways that many new centres sprang up. Some of the new centres were also more favourably located in regard to raw materials and consu­mers' markets, than the original centre like Bombay. The cotton mills, therefore sprang up in many new centres. Another contributory factor was the shift of the industry from high to low labour costs. The develop­ment of hydro-electric resources in the country particularly Tamil Nadu, Kamatak and Punjab has given considerable impetus to cotton manu­facturing in those areas. The high cost of labour at Bombay is a discoura­ging factor for future expansion of the industry. Since 1925, certain tendencies are operating which show that the industry is gradually shifting from old centres like Bombay to centres of low wage rates. The other deglomerating tendencies began as a result of, (i) increase in land values and rents, (ii) rise in cost of living, (iii) increase in internal cost of transport, and (iv) increase in taxes and water rates. In Bombay the number of mills declined from 82 in 1925 to 65 in 1958. (Mr. M. Mehta, Structure of Indian Industries.) The operation of deglomerating tendencies has, by increasing the cost of production, considerably weakened the competitive position of Bombay. The industry has tended to move to more favourable locations.

The history of the organised cotton textile industry in Bombay is traceable to the year 1851 wherein Mr. Cowasji Nanabhai Davar, an enterprising Parsi, projected a cotton spinning factory. The Bombay Spinning and Weaving Mill, as it was called, was erected at Tardeo, now in the heart of the city and was inaugurated on February 22nd, 1854. (Another date of the inauguration of the Mill is given as February 7,1856.) The enterprise proved a great success and Mr. Davar felt encouraged to establish another mill in proximity to the first one. The second venture, known as the Bombay Throstle Mill, was undertaken in 1857, (It went into production in 1859.) and was later renamed as Alliance Mill in 1864. The success of this under­taking induced Mr. Maneckji N. Petit to erect the Oriental Mill in 1858 with 30,000 spindles. The third venture was so prosperous that it was converted into a joint-stock company and considerably expanded with new machinery including 50,000 spindles and 1,000 looms. It was in 1860 that the foundations of the managing agency system in cotton textile industry in Bombay were laid. The Oriental Mill was the first enterprise to introduce the managing agency system.

Another stalwart in Bombay's business was Sir Dinshaw Maneckji Petit who floated the Maneckji Petit mill in 1860 with 60,000 spindles and 1,000 looms. This venture also yielded handsome returns which induced further industrial enterprise not only among the Parsi community but also among the wealthy Bhatias who undertook mill establishment with good success. The next years witnessed the projection of nearly a dozen mills, and the industry spreaded to other parts of Bombay Presidency. Sir Dinshaw Petit himself started another mill viz., the Victoria Mill in 1860, which was a spinning mill. The other mills started during this period were as under:—

Royal Mill (1860), Coorla Mill (1860), Bombay United (1860), Great Eastern (1860), Arkwright (1863), Albert (Parel) (1867), Alexandra (1869) and Morarjee (1870). The thirteen mills mentioned in above paras employed about 8,100 workers and had 2,91,000 spindles and 4,100 looms.

The enterprise of the Bombay men of amazing commercial career initiated enormous growth in the industry and trade of not only the Presidency but also of the country. For this India is highly indebted to the early pioneers of the industry. (A few of them may be mentioned as : Davar, Maneckji Petit, Dinshaw Petit, Nusserwanji Petit, Bomanji Wadia, Dharamsey Punjabhoy, Merwanji Pandey, Jamshetji Tata, Tapidas Varajdas, Keshawji Naik, Khatau Makanji, Mangaldas Nathubhai, James Greaves, George Cotton, Morarjee Goculdas, Muncherji Banaji, Moolji Jetha, Thackersey Moolji and many others.) The demand for the Bombay cloth and yarn was increasing mainly because of its cheapness as compared to the Lancashire industry. The cheapness of the products was attributable to lower wages, cheap raw cotton from the hinterland, abundance of coal and plenty of capital with the Bombay businessmen.

The progress of the mill industry in Bombay was temporarily arrested in 1861 which condition continued for nearly ten years. This was mainly on account of the American Civil War which broke out in April 1861, and due to the abnormal demand for Indian cotton and the fabulous prices it fetched in England. The civil war interrupted supply of raw cotton to England from America which resulted into unprecedented spurt in cotton trade in Bombay. The traders in the city invested all their capital in cotton exports. The value of cotton exports increased from 5.25 millions in 1860 to 80 millions in 1865. The American Civil War and its aftermath convulsed the commercial life of Bombay with an unprecedented intensity. The super abundance of wealth due to, what was termed the Share Mania stimulated wilder enterprises in other directions, such as, backing, financial associations, shipping, land and building business, etc. The Back Bay Reclamation Project beat every other venture.

The end of the civil war in 1865 however initiated the most widespread economic ruin and general disaster in the history of the city. It was a period of near stagnation for cotton mills. The prices of cotton fell with an appalling rapidity, and securities dropped heavily. It was only by the end of 1870 that normal conditions returned, and the textile industry experienced conditions of revival. Large concerns like the; Alexandra and the Morarjee Goculdas Mills were started about this period. They were followed by 15 mills during the next five years. (The history of cotton mills upto 1927 is based on Bombay Industries: Cotton Mills, 1927 by Mr. S. M. Rutnagur)

It was also this time that Jamshetji Tata emerged as an enterprising progressive industrialist who had a tremendous influence on the growth of the mill industry and the economical working of factories. He started the Alexandra Mill in 1869 and later the Central India Spinning and Weaving Company. The Alexandra Mill soon became one of. the most efficient units in Western India, and was sold at a large profit.

Mr. Tata was the first Indian industrialist to introduce a system of fair deal to labour in this industry. He was the first to introduce bonus and provident fund for his employees, besides other labour welfare measures. In course of time, he set up more mills in Western India. To set aside chronology for the time being, he started the Swadeshi Mill in Bombay in 1886 for production of finer varieties of textile with long staple cotton. The Tatas established another famous mill, viz., the Tata Mills, in 1915 after Jamshetji Tata's death.

Morarjee Goculdas established a cotton mill after his name in 1870. This was followed by many mills. Thackersey Moolji floated the Hindoostan Spinning and Weaving Mill Company in 1873 with an authorised capital of Rs. 12,00,000. The Sassoon Spinning and Weaving Mill was started in 1874 by David Sassoon and Company. The Khatau Makanji spinning and Weaving Mill, another well-known unit in Bombay was established in 1875. It is no small tribute to the sagacity and, fore­sight of the founders of these enterprise that some of the houses like the Thackerseys and the Khataus have not only completed one hunted years of their productive existence but have also remained under the same management. The Morarjee Mill and the Coorla Mills also cele­brated their birth centenaries, although their management has changed hands since incorporation.

In those days, initiative, desire and integrity marked the development of textile industry in Bombay. The mill-owners made profits but did so by fair means and hard work.

The progress of the industry in Bombay during the first twenty years of its existence (upto December 1875), was as under:—

Period

No. of . mills

Spindles

Looms

Employment

Paid up Capital

1855-4870
1870-1875

13
15

2,91,000 4,61,600

4,100
3,680

8,100
5,450

NA
3,38,58,000

Total in 1875

28

7,52,600

7,780

13,550

3,38,58,000

PROGRESS BETWEEN 1875 AND 1885

The progress of the industry in this period was particularly rapid, there being 21 new mills by the end of 1885, The third group of new mills comprised the spinning factories Started by Greaves, Cotton and Co., which were the first in Bombay to be managed on the basis of a commission on profits for the Agents. They were quite profitable for the investors. Binshaw Maieckji Petit's firm made further additions to their mills in this period, while Thackersey Moolji and Co. started two new factories which elevated them to the status of the largest millowners in the Hindu Community.

In all 23 new mills were projected between 1875 and 1885, while two were closed. The city thus possessed a total of 49 mills in 1885 as under:--

 

Mills

Spindles

Looms

Employment

Paid-up capital

In 1875
1875-85

28
21

7,52,600 5,94,800

7,780
4,230

13,550
28,000

3,38,58,000 1,41,04,060

Total in 1885

49

13,47,400

12,010

41,550

4,79,62,000

PROGRESS FROM 1885 TO 1895 : THE ADVENT OF RING SPINNING

The Bombay mills used to do spinning on the mule or fly throstle hitherto. However, introduction of the Ring spinning frame in this period was a revolutionary measure in the industry in respect of economy of costs. The Greaves, Cotton and Co., which took initiative in this respect was followed by many new mills which adopted this system, while some of the older mills also replaced the mules or throstles. These included the Empress, New Empress, Connaught, Howard and Bullough, Imperial, James Greaves, and Leopold with a total of 283,000 ring spindles which brought handsome returns.

It was during this period that the Revolving Flat Card was being perfected to supersede the Roller Card. Many other innovations introduced in Lancashire encouraged Bombay millowners to renew their plants, while new mills were projected under fresh enterprise. Consequently, the third period in the history of mills in Bombay 1885-95, brought in further addition of 21 mills, making 70 in all with an aggregate of 2,124,000 spindles, 20,220 looms and 75,750 workers. These new mills included those floated by Currimbhoy Ebrahim and Sons, Sassoon J. David and Co. and E. D. Sassoon and Co., which worked with marked success.

SLOW PROGRESS BETWEEN 1895 AND 1905

The progress of the industry was retarded by acute financial depression, as also by plague and famine. The companies which were not managed economically and efficiently either went into liquidation or changed the Agents. The bubonic plague of 1896-98 frightened the workers who migrated to their native place to escape the havoc of the epidemic. The famine which ensued added to the adverse conditions. The industry however showed conditions of revival in 1903. This period of ten years was marked by the establishment of some mills which have lived up to their reputation to the present day which include Gold Mohur (1896), Globe (1896), Kohinoor (1896) and Century (1898). Though 16 new mills including the ones mentioned above were started, four old mills were closed during this period, leaving a total of 82 mills in Bombay in 1905. The industry could not escape the ravages of the international depression in textile industry from 1900 to 1905.

JAPANESE COMPETITION : 1905-1915

The unpalatable memories of the plague and depression in the industry deferred the entrepreneurs from venturing in cotton mill building between 1905 and 1915. Japan, which had undertaken establishment of mills from 1900, began competing with Indian yarn in Chinese markets. This had an adverse impact on the Bombay textile industry. Investment was channelised for improvement of existing machinery rather than for establishment of new mills. Though eight new mills were started in this period, four old ones were closed, leaving 86 mills in existence in 1915. The honourable additions to the mills in this period were as under : Finlay (1906), Spring (1908), Pearl (1913), Simplex (1915) and Tata (1915).

BETWEEN 1915 AND 1925

The outbreak of the First World War in 1914 and the stoppage of imports of machinery from Lancashire to India prevented establishment of new mills in Bombay for many years. The conditions for establishment of new mills remained adverse even after cessation of hostilities in 1918. The cost of land and construction was exhorbitant. There was also a demand recession after 1918. While Bombay was exporting yarn to China on a very large scale upto 1914, the exports fell rapidly on account of Japanese competition. Surprisingly enough, Japanese yarn and piece-goods were imported in Bombay.

As per the Administration Report of the Bombay Presidency for 1923-24, " Since 1917, China has been practically a closed market for Indian piece-goods owing mainly to the expansion of the indigenous textile industry and to the rigour of Japanese competition."

The Premier mills projected by Cuirimbhoy and Sons in 1921 were the only addition to Bombay mills in this period. Five of the old mills were closed during this period. At the same time large extensions to existing plants were made which accounted for the heavy increase in the number of spindles and looms. The considerable rise in the paid-up capital in this period was due to conversion of private concerns into joint-stock companies and to the transfer of existing factories at enhanced capital cost during the boom period   of 1920-22.

POSITION IN 1925

During the span of 70 years from 1855, 97 cotton mills were started in Bombay city. But many of them were destroyed by fire and closed, while in others the machinery was sold, leaving a total of 82 spinning and weaving mills in Bombay city including Coorla mill.

The summary of the progress during period of ten years is given below :—
It is noteworthy that there was an enormous increase in machinery in the mills after 1905. Large extensions were made in existing factories during 1915-25. There was a huge rise in spindles and weaving machinery. Competition from Japan and other trade conditions compelled Bombay millowners to search new markets and spin higher counts and weave a greater variety of cloth. Quality of the cloth was improved by bleaching, finishing and dyeing.

The old mills which faced a disadvantage due to paucity of weaving and other machinery were also renovated with looms, finishing plants and modern improvements and processes. The Bombay cotton mills, in 1925, were in no way inferior to the Lancashire textile factories in their general equipment and manufacturing resources. (S. M. Rutnagur, op. cit)

As a matter of fact 97 mills had been established up to 1925, though there were only 8 surviving units. This was because many of them had been destroyed by fire or closed and dismantled. Excepting a few, the pioneering units turned out to be successful. However, the plague of 1896-98 and the famine which ensued depressed the industry miserably. The concerns not managed with efficiency and economy were the worst hit. The industry lost the Chinese markets on account of keen competition from Japan, which affected profits. The situation was aggravated by mismanagement and even corruption. The protests from shareholders and financial difficulties of the Agents compelled the closure or reconstruction of many undertakings. The loss of the Chinese market however brought about a material change in the character of the textile industry, which was hitherto a predominantly coarse yarn spinning industry. More looms were installed to turn out the excess yarn into cloth.

A mention must be made of the activities of the Bombay Millowners' Association, founded in 1875. It was actively concerned with the interests of the textile industry. The British Government recognising its importance and influence had allotted some seats to it in the Legislative Assembly, the Legislative Council and other corporate bodies in Bombay. It took an active part in the legislative and other measures connected with the working of the cotton mills.

The Bombay mills had to face prolonged strike from September 15, 1925 to December 1, 1925. Every mill was affected, a huge labour force of nearly 1.5 lakh striking work.

The Bombay Millowners' Association experienced very anxious periods during the trade depression of 1924-25. It directed itself to intensive efforts for the removal of the cotton excise duty which was repealed after 18 months of agitation. The industry was faced with competition of Japan, and the Association did a great deal of work by pleading its case for protection. The consequent gain for the industry was the appointment of the Textile Tariff Board by the Government of India in July 1926.

The Association pointed out to the Board the handicaps of the industry on account of exchange rates and employment of female labour in Japanese mills. The Indian industry, as advocated by the Association, required additional protection equivalent to 13 per cent and further additional protection to enable the Bombay mills to make the necessary allowances for depreciation to plant and machinery. The efforts of the Association bore some fruits though the basic problems were not solved by the Tariff Board.

It is very pertinent to mention a few characteristics of the Japanese competition in the third decade of this century. The Japanese selected particular types of goods which were manufactured in Bombay, and lowered their prices. The exchange rates of rupee vis-a-vis China and Japan put the Indian exports at a great disadvantage in 1924-25 gradually depreciating Japanese exchange coupled with the appreciation of the rupee exchange enabled the Japanese to compete with the Bombay mills successfully. The economical cost of production of Japanese cloth was also detrimental to the Bombay industry.

The Great Depression of 1929-30 which had a devastating impact on the industry and trade in almost all western countries and the British Empire however did not have had an adverse effect on the cotton textile industry of Bombay. Though one mill was closed in 1929, there was no appreciable fall in regard to number of spindles installed. In fact there was rise in the dumber of looms and quantum of raw cotton consumed by the mills in 1929, 1930 and 1931 over that in 1928. The industry appears to have enjoyed better conditions in 1927. But the depression did not appear to have slumped cotton mills even in comparison to 1930. The year 1934 appears to be adverse in the history of the industry in regard to fall in number of spindles, looms and consumption of cotton. The Bombay mills had made a loss of about Rs. 237 lakhs in 1930 due to competition by Japanese goods. The Bombay Millowners' Association suggested, in July 1932, an immediate increase in both the specific and ad valorem duty on grey cotton goods imported from Japan, and an ad valorem duty on all other classes of Japanese cotton goods as measures for according protection to the industry. The Government of India accepted these suggestions in 1933.
The industry in Bombay showed a declining trend in 1939 in regard to the number of mills in operation, which declined to 68 in that year, to 65 in 1940 and 64 in 1941. Some of the mills preferred to switch over to other productive avenues and closed while others were destroyed by fire. This was however not a real decline in the growth of the industry. Except for some aberrations in 1940, the cotton textile industry experienced buoyancy throughout the period of the Great World War of 1939-45. There was an unprecedented demand for cloth in the Indian market as imports had virtually been restricted to meet the needs of the war effort. Huge orders were placed by the Government to clothe the armed forces of the Indian Army. The industry geared itself to help the British Govern­ment and to reap the harvest of profits. Consumption of raw cotton increased immensely, though imports of long staple cotton virtually ceased, due to the war. The consumption of cotton by mills in Bombay increased from 8.13 lakh bales (of 392 lbs.) in 1940 to 11.48 lakh bales in 1941; 13.10 lakh bales in 1942; 14.84 lakh bales in 1943; 14.52 lakh bales in 1944 and to 14.93 lakh bales in 1945. The installed capacity of the mills was fully utilised. The cessation of hostilities in 1945 however retarded the growth of the industry and there was a sharp decline. With the recession in demand production was curtailed and installed capacity was under-utilised. The inherent structural drawbacks of the cotton textile industry in Bombay were exposed immediately after the war. It was mainly a labour intensive industry. There was hardly any research and development project. The machinery was out-dated, while replacement was virtually impossible during the buoyancy in the war period. Due to lack of replacement, they showed signs of ageing, over-utilised as it was during the listlessness of the war demand.

The ailments of the old cotton mills of Bombay were conspicuously experienced after the war. This trail of events reached its culmination in 1951, resulting in a heavy decline in production and employment. The partition of India in 1947 was another great blow to the industry, as indeed it was to the Indian economy as a whole. From times immemorial, India had enjoyed the advantage of self-sufficiency in cotton, except a small quantity of long staple varieties. With partition of India, the supply of raw cotton of good quality was adversely affected.

While it was clear that the relatively weak and marginal units required an accelerated pace of modernisation, the financial constraints made it impossible for them to undertake the desired modernisation. (Final Report of the Task Force on Textile Industries, Planning Commission of India, 1972.) Besides, financial constraints, the modernisation and replacement programme was handicapped by shortage of textile machinery from domestic sources. "While the availability of finances with the mills and with the lending institutions represents one of the limiting factors affecting the size of a practicable modernisation programme for the industry, the other constraint of machinery supply is perhaps even more important." (Ibid.)

The inevitable result was that a number of old cotton mills which were not managed efficiently with due care for rationalisation and replacement of machinery fell 'sick' after Independence. The ailment of obsolete and relatively inefficient machinery made them ' sick'.

In the period 1955 to 1959 and again 1964 to 1971, the cotton textile industry passed through a difficult phase on account of the shortage of raw material, power and some recession in demand. The lower capacity utilisation on account of inadequate supply of cotton and difficult working capital position, coupled with low machine productivity resulted in the closure of a large number of mills. (Ibid.)

In view of the large scale unemployment and decline in production, Government was obliged to take over the management of mills which were closed or were facing imminent closure under the Industries (Development and Regulation) Act, 1951. The incidence of sicknessand closure was more after 1964-65. This made it imperative on the part of the Government of India to establish the National Textile Corporation in 1968 to undertake management of the ailing factories. The first task of the management in the public sector was to undertake a thorough measure of renovation and replacement of obsolete machinery and nationalisation of production. The following mills in Bombay were nationalised under the Sick Textile Undertakings (Nationalisation) Act, 1974. The amount of compensation payable in respect of them is mentioned against them :—

     Mills                                                                                        Amount Rs.

1. Digvijay Spg. and Wvg. Mills                                               ..     75,65,000
 2. Edward Mill                                                                           ..    65,28,000
 3. India United Mills (six units and one dye work)    ..                     12,40,000
4. New Kaiser Hind Mill                                                          ..          48,70,000

5.Seksaria Cotton Mill                                                 ..               49,67,000

“Most of the sick mills have an excessive labour force which has contributed to higher labour cost per unit of output of yarn and cloth. The question of retrenchment of surplus labour is evidently a difficult one in view of the scarcity of employment opportunities in the economy." (Report of the Task Force on Textile Industries)

The textile mills remained by far the biggest employer of labour in manufacturing, accounting for half of all working force in manufacturing in 1961. Its pre-eminence was more conspicuous in earlier times. " During the sixties, the relative decline of cotton mill employment turned into an absolute decline. There was stagnation in output as well as replacement of men (and especially women) by machinery." (Heather Joshi and Vijay Joshi, Surplus Labour and the City, p. 63)

The statistics given below for changes in the average levels of outputs and inputs of the Bombay cotton mills between 1958-60 and 1968-70 indicate that the ratios of capital and material inputs in relation to labour have increased. (Bombay Millowners' Association, Annual Report, 1971)

Cotton Mills in Bombay : Index of Inputs and Output, 1968-70
(1958-1960 = 100)

Average Daily working Spindles

Looms

Cotton Consumption. (Bales)

Daily Employment

Yarn (tons)

Cloth (metres)

108

95

96

89

93

84

The quality of output of cloth improved between 1961 and 1970. This is evident from following figures of qualities of cloth produced by Bombay cotton mills:—

Quality

1961

1970

1961

1970

(Thousand metres)

(Percentage of Total)

All

1,371

1,120

100

100

Coarse

241

136

18

12

Medium

990

674

72

60

Fine and superfine

140

311

10

28

The latter phenomenon, known as rationalisation', is probably in part a case of pure factor substitution in response to higher wage costs, but probably it also reflects changes in technique in response to changing product-mix and also technical advancement. Improved techniques tend to involve increase in capital intensity and so do new types of cloth, synthetics and blended fabrics, as well as better quality cotton textiles.

While the cotton industry of the country as a whole was loosing ground on the world market, the decline in textile employment was "more pronounced in Bombay than in the rest of the country. This was pre­sumably because of the greater weight of high quality cloth in the output of Bombay cotton mills and because of the high level of wages in Bombay in relation to other parts of the country." (Heather Joshi and Vijay Joshi, op. cit) The growth of employment was much faster in a newer industry like chemicals and pharmaceuticals. Other branches of manufacturing expanded employment at a rate comparable with other sectors of production. "It should be pointed out that the skill-intensity of expanding industries such as petrochemicals, pharmaceuticals and electronics is probably significantly higher than that of the older, stagnating textile sector." (Ibid)

A significant feature of the cotton mill industry of Bombay has been the fall in the employment of women from about 11,000 in 1961 to 6,500 in 1971 which means a decline by about 41 per cent. The women employed in the mills were mainly unskilled and illiterate reelers and winders, which jobs were becoming increasingly automatic. Women's jobs are not only confined to a few occupations, but they also find it difficult to compete with men. (Ibid)

TREND IN SIZE OF COTTON MILLS IN BOMBAY

A study in the recent trends in the size of industrial units in the cotton mill industry of Bombay over the period 1905 to 1959 by Dr. M. M. Mehta reveals many interesting features. According to this study there was a preponderance of smaller units and a comparative absence of bigger spinning units in the earlier period. In 1905, 54 out of 73 units had less than 40,000 spindles. Thereafter there was a fall in the number of these smaller units having less than 40,000 spindles. Many of them were either scrapped, dismantled or absorbed by bigger units. The period of decadence of smaller units coincided with the period of Great Depres­sion. "There has been a relative spreading out of units into somewhat larger dimensions." The average size of spinning section increased from 32,000 spindles in 1905 to 58,000 in 1959.

There is a tendency on the part of the units to grow out of their humble beginnings and to expand as the financial resources permit. The periods of rapid expansion generally coincided with periods of great industrial activity, and vice versa. The large expansion in the size of units from 1951 to 1959 is partly accounted for by the various development programmes under the five year plans, and partly by large concessions, protective duties, ban on imports, increase in demand and an assured home market.

In regard to the weaving section of the cotton mill industry of Bombay during 1905-59 period Dr. Mehta's study reveals that there was prepon­derance of the smaller units and a comparative absence of bigger units in earlier years. In subsequent years the smaller units saw extinction while the bigger ones expanded. During the early period, it was the expansion of spinning that brought about expansion of weaving. In subsequent period, the expansion of weaving section of textile industry brought about an expansion of the spinning section. The tempo of expansion is higher in the case of weaving than in the case of spinning. This is because of firstly, the changing character of the Bombay cotton industry from a predominantly spinning to combined spinning and weaving type, and secondly, the changes in the character of output and diversification of production, which required a higher proportion of loomage to spindleage.

Dr. Mehta's study of the trends in size of combined spinning-weaving factories during the period 1906-59 suggests that "a tendency is operating, though indistinctly, in the earlier period and more marked in the later years, for spindles and looms to combine within a certain range of ratios. The ratio of 40 spindles to one loom is becoming more and more pronounced though it will, in individual cases, vary according to the degree of specialization and the character of output. Production of finer varieties will involve a higher proportion of spindleage to loomage than production of inferior varieties."

"The movement towards specialization, has not made any appreciable progress during the last fifty years. Most of the units still operate on quite a wide range of counts and weave many varieties of cloth to meet the diverse requirements of the Indian market. The average ratio between spindleage and loomage in each individual unit, therefore, exhibits narrow range of variation. This feature one would hardly observe in case of Lancashire industry where each individual unit specializes in the production of particular counts of yarn and particular varieties of cloth." (M. M. Mehta, op. cit, pp. 38-39.)

The typical mill in Bombay had 500 to 1,000 looms and 20,000 to 40,000 spmdles in 1921. By 1959, the size of the typical unit expanded considerably. In 1959, the typical spinning-weaving mill in the city had a range of 750 to 1,250 looms and 30,000 to 60,000 spindles. The expansionist tendency is thus clearly observable.

Variation in Profit Rates : It is interesting to observe the existence of the disparity in the inter-unit rates of profits. The inter-unit variations are of considerable dimensions in Bombay textile industry. The average rates of profit declared during the period 1938-57 varied from 4.72 in the case of the Colaba mill to 22.65 in the case of the Simplex mill, the majority of the mills having declared profits at the average rates varying from 5 to 20 per cent. The variations in rates of profits in some of the cotton mills in Bombay during the period 1938-55 are given below (M. M. Mehta, op. cit.):—

Mill

Average rate
of profit declared, 1938-55

 

Mill

Average rate of profit declared, 1938-55

1. Colaba

4.72

12.

Phoenix

17.31

2. India United

  6.16

13.

Bombay Dyeing

 17.36

3. Elphinstone

 7.38

14.

Gold Mohur

17.81

4. Edward Textiles

  8.87

15.

Western India

18.17

5. Coorla

  9.02

16.

Morarjee Goculdas .

 18.37

6. New Great

11.37

17.

Swan

 19.12

7. Apollo

 11.40

18.

Indian Manufacturing

19.80

8. New City

13.10

19.

Hindoostan

20.25

9. Dawn

 15.33

20.

Century

20.68

10. Finlay

15.48

21.

Kohinoor

21.69

11. Swadeshi

16.88

22.

Simplex

22.65

It is noteworthy that the Kohinoor and Century Mills were then of exceptionally large size with more than 95,000 spindles. The disadvantages arising from their locations could be more than off-set by the counter­vailing economies arising from the expansion in the scale of output, greater efficiency and management, and the degree of financial, managerial and administrative integrations. These factors important as they are contributed very substantially in sustaining the competitive power and efficiency of the Bombay industry. It therefore follows that the endurance, tenacity and competitive power of less favourably situated units depend, in the long run, on their ability to counteract some of the diseconomies arising out of less favourable locations by superior organising ability. (M. M. Mehta, op. cit.)

Besides inter-unit variations in profit rates, there were wide inter­regional variations as between Bombay and other centres of the cotton textile industry in India. A detailed study of these various centres is not intended here. It suffices to say that the mills in Bombay fared comparatively better than those in other regions.

Variation in Costs : The nature and extent of inter-regional differences in the cost structure of the cotton industry is a very important aspect which can throw a light on the propensity to shift manufacturing activity to some centres with low costs of production. The Indian Tariff Board Report on Cotton Textile Industry, 1932, (For details see the Report,) has attempted to give the percentage of the component items of manufacturing costs like labour, fuel and power, water, stores, etc. to the cost of production in some important centres of the cotton mill industry in India. The Report of the Board did not take into account the cost of raw material as also the "margin of profit". The explanation furnished by the Tariff Board in excluding the cost of raw cotton was that the prices of raw cotton varied from time to time, and that the individual mills mixed the different varieties of cotton in different proportions.

Dr. Mehta has compiled the percentage of each component item of cost like raw materials, wages, stores, power and fuel etc., to the total value of goods sold, thus taking into account both the distributive costs as also the margin of profit. The results of compilation pertaining to Bombay, Sholapur and Nagpur are given below:—

TABLE No. 4
REGIONAL VARIATION OF COSTS IN THE COTTON MILL INDUSTRY
OF MAHARASHTRA, 1948

 

Bombay

Sholapur

Nagpur

Number of units examined

3

2

2

Items

%

%

%

Raw Materials

36.20

36.20

41.50

Stores

9.73

5.65

6.90

Power and Fuel

1.77

2.90

2.85

Wages and Salaries

31.50

32.15

28.65

Interest

1.33

0.10

0.55

Depreciation

1.63

1.05

1.65

Managing Agents' Allowances and Commission.

0.50

1.15

1.20

Selling Expenses

5.90

0.45

1.60

Other Expenses

 

5.95

4.05

Total Costs

88.56

85.60

88.95

Profit

  11.44

14.40

11.05

Total Sales

100.00

100.00

100.00

Broadly speaking, it can be said that the balance of advantage in respect of the supplies of raw cotton is against Bombay. It should however be remembered that these differences are not solely due to the locational advantages or disadvantages of different centres in regard to supplies of raw cotton, but to the differences in the character and quality of output, and the proportion in which several varieties of cotton are mixed in order to produce the desired quality of output. Indeed, the data available for study would not admit of any definitive inference or conclusion. (M. M. Mehta, op. cit.)

The concluding remarks of the Indian Tariff Board are worthy of consideration. "Our examination of the cost of production in various centres shows that for the greatest disability from which Bombay suffers is its high cost of labour. It is also under substantial disadvantages in regard to cost of fuel and power, cost of water and higher local taxa­tion, but these are rather more than off-set by advantages in regard to the cost of stores, of insurance and of office expenses. So far as costs of production are concerned, it is in labour costs that is to be found the main reason why the depression in the industry has been felt so much more acutely in Bombay than it has elsewhere." (Indian Tariff Board Report on the Cotton Textile Industry, 1927, p. 123).

The progress of the cotton textile industry which is not only the oldest but also the largest and the most important industry of Bombay is reviewed from 1885 to 1975, in tables Nos. 5, 6, 7 and 8.

The position of the cotton textile mill companies in Bombay in regard to their total amount of paid-up capital, number of spindles installed, average number of spindles at work in the first shift, doubling spindles installed, number of looms installed, average number of looms at work in the first shift, approximate quantity of cotton consumed, average number of workers employed daily in all shifts and total number of working days can be assessed from table No.5.

TABLE No. 5
Cotton Mills in Bombay since 1885

Year

Mills

Spindles

Looms

Average number of hands employed
daily

Approximate quantity of cotton consumed

Cwts. (Bales
of 112 lbs.)

Bales
(392 lbs.)

1

2

3

4

5

6

7

1885

49

13,47,390

12,011

41,545

13,73,743

3,92,498

1890

70

18,95,660

13,785

59,139

22,26,819

6,36,234

1895

69

21,23,892

20,217

75,740

28,53,879

8,15,394

1900

82

25,36,891

22,215

72,914

26,06,800

7,44,800

1905

81

25,60,916

28,073

92,924

37,53,582

10,72,452

1910

89

28,24,046

41,931

1,04,550

34,44,203

9,84,058

1915

86

29,94,367

51,846

1,11,924

35,91,175

10,26,050

1920

83

29,64,526

60,634

1,40,208

33,50,025

9,57,150

1925

82

34,56,233

72,266

1,53,009

34,81,562

8,94,732

1930

81

34,30,733

76,697

N.A.

30,71,222

8,77,492

1935

74

29,90,088

68,385

N.A.

30,98,382

8,85,252

1940

65

27,48,644

65,177

N.A.

28,47,075

8,13,450

1941

64

27,89,080

65,292

NA.

40,17,888

11,47,968

1942

66

28,19,832

66,120

N.A.

45,85,119

13,10,034

1943

66

28,31,328

66,269

N.A.

51,95,617

14,84,462

1944

65

28,34,052

66,179

N.A.

51,81,930

14,51,930

1945

65

28,03,406

66,164

N.A.

52,26,340

14,93,240

1946

65

28,32,530

65,948

1,90,795

47,68,701

13,62,486

1947

65

28,50,870

65,836

2,11,347

39,44,724

11,27,064

1948

65

28,66,150

65,880

2,01,083

43,03,040

12,29,440

1949

65

29,04,138

65,238

2,09,508

41,80,442

11,94,412

1950

65

29,27,162

65,163

2,00,135

35,21,455

10,06,130

1951

65

29,39,162

65,384

1,96,363

32,39,761

9,25,646

1952

65

29,20,509

65,379

1,97,900

36,46,685

10,41,910

1953

65

30,17,049

65,628

2,04,274

43,53,643

12,43,898

1954

65

30,26,044

65,671

2,07,179

44,09,587

12,59,882

1955

66

31,01,672

65,904

2,03,391

44,49,557

12,71,302

1956

66

31,13,620

64,467

2,12,762

44,41,297

12,68,942

1957

66

31,60,954

64,134

2,12,608

46,71,086

13,34,596

1958

65

32,12,650

64,426

2,00,446

43,83,295

12,52,370

1959

65

31,69,777

64,335

1,91,335

43,47,742

12,42,212

1960

65

31,93,699

63,407

1,94,398

42,55,349

12,15,814

1961

63

32,25,441

62,880

1,97,404

44,45,952

12,70,272

1962

62

32,09,560

61,720

1,97,922

46,79,262

13,36,932

1963

62

32,35,928

62,186

1,93,303

44,87,049

12,82,014

1964

62

33,54,872

63,273

1,97,269

47,26,008

13,50,288

1965

62

34,29,491

63,255

1,92,786

46,82,167

13,37,962

1966

62

35,21,411

63,713

1,86,915

43,01,983

12,29,138

1967

59

35,60,730

64,134

1,85,601

41,33,472

11,80,992

1968

59

*35,53,790

62,909

1,74,975

42,38,573

12,11,020

1969

59

*35,56,702

63,057

1,70,766

41,33,990

11,66,717

1970

59

*35,10,578

62,450

1,74,167

42,36,996

12,10,570

1971

59

*35,35,114

62,897

1,72,208

38,70,734

11,05,924

1972

59

*35,81,220

62,961

1,74,666

42,00,786

12,00,225

1973

58

*35,46,488

62,066

1,78,236

43,52,675

12,43,622

1974

58

*35,17,962

62,093

1,75,138

40,79,783

11,65,652

1975

58

*35,52,754

62,564

1,67,819

39,08,700

11,16,691

*Excludes doubling spindles but includes waste spindles,

TABLE No. 6
Progress of Cotton Textile Mill Industry in Bombay

Year

Average working daily (1st Shift)

Cotton consumed  bales of 392 lbs

Production of

Average Number of hands employed daily all shifts

Spindles

Looms

        Yarn (000kgs) Cloth (million meters)  

1

2

3

4

5

6

7

  Year ending 31st August Year ending 31st December Year ending 31st August

1941

2,465,515

62,688

1,147,968

206,083

1,372

 

1942

2,457,782

61,141

1,310,034

207,644

1,257

 

1943

2,578,875

63,171

1,484,462

232,071

1,470

 

1944

2,633,694

63,863

1,451,980

230,354

1,545

 

1945

2,587,850

65,390

1,493,240

229,686

1,475

 

1946

2,625,770

62,312

1,362,486

185,837

1,238

190,795

1947

2,646,600

60,968

1,127,064

170,426

1,138

211,347

1948

2,682,245

61,452

1,229,440

194,965

1,342

201,083

1949

2,574,850

60,096

1,194,412

175,577

1,182

209,508

1950

2,667,556

61,209

1,006,130

134,125

959

200,135

1951

2,655,637

60,874

925,646

165,253

1,253

196,363

1952

2,688,330

61,690

1,041,910

173,777

1,297

197,900

1953

2,758,193

62,645

1,243,898

193,147

1,431

204,274

1954

2,800,581

62,405

1,259,882

192,445

1,438

207,179

1955

2,779,397

62,074

1,271,302

199,910

1,459

203,319

1956

2,867,952

61,693

1,268,942

196,290

1,469

212,762

1957

2,872,308

60,745

1,334,596

208,985

1,508

212,608

1958

2,802,895

59,497

1,252,370

189,767

1,370

200,446

1959

2,804,418

58,531

1,242,212

192,627

1,344

191,335

1960

2,877,061

58,442

1,215,814

189,475

1,347

194,398

1961

   2,934,480

58,703

1,270,272

206,844

1,371

197,404

1962

   2,978,221

58,464

1,336,932

200,844

1,304

197,922

1963

   2,947,675

57,880

1,282,014

201,832

1,271

193,303

1964

   3,056,452

59,333

1,350,288

205,755

1,288

197,269

1965

   3,057,566

58,751

1,337,762

195,474

1,243

192,786

1966

   3,057,605

57,756

1,229,138

184,556

1,143

186,915

1967

   3,173,630

58,545

1,180,992

171,226

1,085

185,601

1968

  3,024,682

55,946

1,196,287

182,340

1,168

174,975

1969

   2,986,147

55,520

1,166,717

175,518

1,137

170,766

1970

   3,115,153

57,128

1,210,570

171,389

1,120

174,167

1971

   3,079,294

56,513

1,159,523

159,523

1,120

172,208

1972

   3,068,943

56,114

1,200,224

178,610

1,203

174,666

1973

   3,133,531

57,038

1,243,622

182,732

1,169

178,236

1974

   2,964,009

54,861

1,165,652

166,229

1,125

175,138

1975

   2,696,889

52,869

1,116,691

160,889

1,074

167,819

1976

   2,874,811

52,298

1,232,539

169,169

1,069

174,027

1977

   2,902,790

54,386

1,086,175

138,466

896

170,286

1978

   7,868,288

54,855

1,013,490

153,471

928

167,273

1979

   2,756,909

53,152

1,056,081

148,801

863

164,187

1980

   2,765,038

54,119

1,177,158

166,120

899

165,126

Note.—Columns 1, 2, 3 and 6—Figures taken from the Association's Mill Statements. Columns 4 and 5—Figures of production of yarn and cloth taken from" Indian Textile Bulletin " published by the Office of the Textile Commissioner, Bombay.

Production was at a standstill in all the mills in Bombay City and Island for about 2 months from 14th August to 2nd week of October in 1950 and for 41 days, from 30th December 1973 to 9th February 1974.


TABLE No. 7
Production of Cloth by Textile Mills in Bombay City


(Figures in million metres)

Year

Coarse

Medium

Fine

Super
Fine

Total

Lower

Higher

1

2

3

4

5

6

7

1967

165

213

459

46

202

1,085

 

(15.2)

(19.7)

(42.3)

(4.2)

(18.6)

(100.0)

1968

171

248

467

58

224

1,168

 

(14.6)

(21.2)

(40.0)

(5.0)

(19.2)

(100.0)

1969

136

208

542

52

199

1,137

 

(12.0)

(18.3)

(47.7)

(4.5)

(17.5)

(100.0)

1970

135

174

500

67

244

1,120

 

(12.1)

(15.5)

(44.6)

(6.0)

(21.8)

(100.0)

1971

123

204

472

72

249

1,120

 

(11.0)

(18.2)

(42.1)

(6.4)

(22.3)

(100.0)

1972

155

259

528

53

208

1,203

 

(12.9)

(21.5)

(43.9)

(4.4)

(17.3)

(100.0)

1973

172

278

416

91

212

1,169

 

(14.7)

(23.8)

(35.6)

(7.8)

(18.1)

(100.0)

1974

143

256

499

75

153

1,125

 

(12.6)

(22.7)

(44.4)

(6.7)

(13.6)

(100.0)

1975

143

249

448

64

170

1,074

 

(13.3)

(23.2)

(41.7)

(6.0)

(15.8)

(100.0)

1976

155

252

446

67

149

1,069

 

(14.5)

(23.6)

(41.7)

(7.3)

(13.9)

(100.0)

1977

219

293

560

44

172

1,288

 

(17.0)

(22.7)

(43.5)

(3.4)

(13.4)

(100.0)

1978

129

221

462

48

68

928

 

(13.9)

(23.8)

(49.7)

(5.2)

(7.4)

(100.0)

1979

126

230

406

40

61

863

 

(14.6)

(26.6)

(47.0)

(4.6)

(7.2)

(100.0)

(Figures in brackets indicate the percentage of each category of cloth produced.) Source.—Figures extracted from the Statistical Bulletin entitled " Indian Textile Bulletin " published by the office of the Textile Commissioner, Bombay.

TABLE No. 8
Cotton Mills in Bombay, 1975

Name of Mill
Paid-up capital (Rs in lakhs)
No of spindles installed (Total)
Average No of spindles at work
Doubling spindles installed
No of looms installed (Total)
Average No of looms at work in the fir£t shift
Approximate quantity of Cotton con­sumed (Bales of 180 Kgs)
Average No of workers employed daily(AH shifts)
Total No of days worked from 1st Sept 74 to 31st Aug 1975
1
2
3
4
5
6
7
8
9
10
1

Jupiter  Mills No 2* (formerly Hind Mills No l)

82,292
53,869
7,628
1,325
1,185
21,474
3,440
288
2

Apollo Mills*

51,276
31,095
3,488
902
638
13,583
2,034
286
3

Bombay Dyeing and Mfg Co (Spring Mills)

433.69
1,34,368
1,22,047
12,912
2,160
2,105
57,668
5,477
301
4

Bombay  Dyeing  and Mfg (Textile Mills)

15,232 71,688
2,213 61,917
23,280
1,610
1,169
25,422
6,792
303
5

Bradbury Mills

35.00
48,912
35,268
2,316
840
623
13,319
2,275
344
6

Century Spinning and Manufacturing

709.76
1,44,444
1,23,380
7,336
3,042
2,933
77,980
9,899
345
7

Coorla Spinning and Weaving

65.00
36,228
31,473
1,424
654
605
17,067
2,148
298
8

Crown Spinning  and  Manufacturing Co (formerly Dhun Mills)

50.00
59,396
38,450
6,868
1,141
905
15,047
2,411
346
9

Dakshe Pvt Ltd *

  ,
10

Dawn Mills Company

42.00
54,836
49,851
14,120
11,826
1,323
335
11

Digvijay  Spinning & Weaving Mills *(formerly Dinshaw Petit Mills)

44,064
32,073
2,336
885
854
13,423
2,281
290
12

Edward Textiles Mills* (formerly  Edward   Sassoon Mills Limited)

50,992
30,314
2,140
932
586
12,285
1,817
296
13

(a)Elphinstone Spinning  and Weaving  Mills  Co   Unit No 1

(b) Elphinstone  Spinning and Weaving Mills  Co   Unit No 2 (formerly Moon Mills)

55.00
51,956
38,509
2,688
935
749
13,723
2,380
302
14

Finlay Mills

120.00
72,224
44,413
4,672
958
844
10,824
3,511
300
15

Gold Mohur Mills

120. 00
66,844
47,386
2,312
1,142
1,022
12,966
2,602
301
16

Hindoostan   Spinning   and Weaving Mills Co

145.80
1,18,624
78,358
7,700
2,489
1,950
49,267
5692
348
17

India   United  Mills No 1* (formerly Jacob Mills)

1,08,516
75,783
2,130
1,858
29,305
5,245
293
18

(a) India United Mills No 2* (formerly Alexandra Mill)

34,264
23,120
4,310
733
605
44,190
2,203
295

(6) India  United  Mills No 3* (formerly  E D   Sassoon Mill)

95,548
63,336
752
648
2,434
295
19

India  United  Mills  No 4* (formerly Rachel Mill)

1,789
1,705
2,190
268
20

India  United Mills  No 5* (formerly Manchester Mill)

30,420
26,589
352
684
623
9,167
1,495
268
21

Jam Manufacturing Co

27.51
49,784
36,011
1,220
1,084
981
14,997
2,536
293
22

Kamala Mills (formerly Ebra-himbhoy  Pabaney Mills)

54. 50

62,176
51,091
4,240
1,031
916
18,881
2,681
306
23

Khatau  Makanji  Spng  and Weaving Co

254. 36
1,31,080
1,16,262
19,916
1,494
1,112
17,440
5,376
300
24

Kohinoor Mills Co (No l & 2)

113. 40
1,30,208
1,05,027
34,084
1,562
1,373
33,126
5,951
300
25

Kohinoor Mills Co (No 3) 

6,456
398
306
973
301
26

Mafatlal Fine Spng and Mfg Co Unit  No  2   (formerly Sassoon  Spng and  Weaving Mills)

62,728
54,962
6,404
1,240
1,053
40,903
2,893
306
27

Mafatlal Fine Spng and Mfg Co Unit No 3 (formerly New Union Mill)

34,096
32,835
1,460
871
801
17,019
1,846
306

28

29

Modern  Mills,  Mill  No 1 (formerly  Mysore  Spng  and \ Manufacturing)  

Modern Mills, Mill No 2 
108 41
61,196
55,836
7,324
836
717
12,696
2,135
300
30

Morarjee Goculdas Spng and Weaving Co

204 13
1,03,416
80,577
17,348
1,848
1,576
40,654
4,725
345
31

National Cotton Products*

32

New City of Bombay Mfg Co

54 00
56,124
46,664
4,080
614
512
22,203
1,680
344
33

New Great Eastern Spng and Weaving Co

43 00
52,688
40,721
1,008
834
22,430
2,238
348
34

New Kaiser-I-Hind Spng and Weaving Mills *

54,424
42,275
5,040
1,199
912
12,470
2,342
291
35

Phoenix Mills  (formerly Britannia Mills)

72 00
98,032
82,338
22,744
1,218
897
30,200
4,889
349
36

Piramal Spinning and Weaving Mills

56 00
56,528
47,680
5,624
1,021
907
13,899
2,517
348
37

Podar  Mills (formerly  Toyo Podar Cotton Mills)

160 00
49,116
44,876
930
921
31,646
2,369
348
38

Prakash  Cotton  Mills (for­merly  Seksaria  Cotton Mills No 2)

49 47
62,636
48,348
3,560
830
733
23,474
2,686
340
39

Raghuvanshi Mills  (formerly Kilachand Mills)

45.00
48,452
38,706
5,968
7,139
1,153
298
40

Rajesh Textile Mills (formerly    Sayaji Mill No 2)

50.00
53,964
44,625
5,088
984
971
16,130
2,712
302
41

Ruby  Mills (formerly  Sorab Mills)

32.00
31,810
18,652
2,992
524
444
6,486
1,116
304
42

Sayaji Mills No 2 * (formerly  NewPrahlad Mills)

57.93
47,672
35,298
628
1,022
902
13,754
2,232
305
43

Seksaria Cotton Mills * (formerly Currimbhoy and Mohammed-bhoy Mills)

81,036
45,331
4,420
1,154
927
15,975
3,065
292
44

Shree Madhusudan Mills

100.00
89,868
64,983
2,996
1,534
1,449
21,193
3,811
302

(a) Shree Mukesh Textile Mills (formerly  Colaba  Textile Mills) (6)  Mukesh  Textile   Mills (formerly  Jehangir  Wadia Mill)

110. 00
19,436
17,797
1,612
676
587
7,343
1,466
306
46

Shreeniwas Cotton   Mills   (formerly Fazulbhoy  Mills)

114.80
1,03,828
75,171
5,150
1,578
1,505
20,638
5,025
346
47

Shree  Ram  Mills (formerly Crecscent Mills Ltd )

200.00
1,22,576
90,358
26,492
1,449
1,223
18,266
4,755
305
48

(a)           Shree Sitaram Mills (for merly Sir Shapurji Broacha Mills)      (Connaught Mill),

(b) Shree Sitaram  Mills (New Empress Mill)

60. 00
61,788
42,541
1,848
1,155
1,006
19,048
3,520
302
49

Shree Textiles*

50

Simplex Mills Co

149 69
50,392
30,686
7,432
792
691
21,432
2,325
346
51

Standard Mills Co

412 00
52,028
44,786
6,096
1,619
1,041
23,461
3,435
346
52 53

Standard  Mills (New Chinay Mills)   J Swadeshi Mills

136 00
51,104 91,048
46,691 54,973
11,360 5,040
781 2,252
686 1,625
9,415 25,513
1,444 3,946
351 301
54

Swan Mills

96 00
49,388
41,454
5,788
628
582
10,649
2,311
301
55

Tata Mills

150 23
84,512
66,573
9,970
1,939
1,617
28,798
5,086
305
56

Victoria Mills

57 28
56,972
28,107
1,852
1,030
773
14,833
2,261
302
57

Western India Mill

60 00
23,524
17,210
1,368
1,160
672
13,717
2,314
306
Total
4804. 02
35,52,754,
25,96,889
3,49,782
62,564
52,869
11,03,184
1,67,819

* Government-run mills. Source.Mill Statement, 1975, Bombay Millowners' Association

The cotton textile industry of Bombay comprises principal and subsidiary industries, such as, (a) cotton spinning, weaving, shrinking, sanforising, mercerising and finishing of cotton textiles; (b) printing, dyeing and bleaching of cotton textiles; (c) cotton ginning, cleaning and baling; and (d) weaving and finishing of cotton textiles in powerlooms. It would be interesting to analyse the structure of the cotton textile industry as a whole and its subsidiary groups on the basis of the Annual Survey of Industries conducted by the Government of India in the years 1973-74 and 1975-77. The statistics presented below cover the census as well as the sample sectors of the Annual Survey of Industries.

It is attempted to analyse the principal characteristics of the cotton textile industry in Bombay and its place in Maharashtra, as per the Annual Survey of Industries in 1975-77. There were 197 registered factories in Bombay which formed 19.78 per cent of the factories in the State. They provided employment to 1,95,318 persons which formed 65.04 per cent of the textile employment in Maharashtra. It may be pointed out that the Annual Survey of Industries might have under­estimated the employment in textile industry in Bombay. This might be due to the method of classification adopted. As per the reports of the Bombay Millowners Association and other authorities, the industry provides employment to about 2.5 lakh persons.This latter figure appears to be more plausible.

The capital invested in the factories in Bombay was computed at Rs.3,00,21 lakhs which constituted 73.20 per cent of the Maharashtra cotton mills. The value of output of the Bombay mills was computed at Rs.6,91,87 lakhs or 77.60 per cent of that in Maharashtra. The value added on manufacture by the mills in this city was as high as   Rs.1,92,06 lakhs or 82.82 per cent of that in the mills in the State.

This analysis brings home the conclusion that Bombay accounts for more than three-fourth of the cotton textile industry in Maharashtra. Though the percentage number of factories in Bombay is not so high, the percentage employment, investment, output and value added on manu­facture is very high. It can therefore be safely deduced that the factories in Bombay are very large in size as compared to those elsewhere in the State.

It can be observed that the value of output was about 230 per cent of the invested capital in Bombay.

The figures given represent the annual averages for the respective survey periods.

There were 257 registered factories in Bombay in 1973-74 which declined to 197 in 1975-77. The decline might be due to closure of the marginal units and to the switching over to other products by some units during the period. We shall subsequently observe that in spite of a decline in number, there was no real decline in the industry. The factories provided employment to 1,89,846 persons including 1,86,489 workers in 1973-74 and to 1,95,318 persons including 1,69,828 workers in 1975-77. Thus the total employment showed an increase in spite of a decline in number of units. The figures of employment show the preponderance of workers in total employees. The factories worked for 6,26,32,890 man-days per annum in 1975-77 period.

The position regarding capital of the factories in Bombay is given below:—

(Rs. in lakhs)

Item

1973-74

1975-77

Fixed capital

85,09.56

1,11,61.92

Working capital

81,36.89

92,52.96

Invested capital

2,50,61.44

3,00,20.87

Outstanding loans

1,33,35.13

1,74,59.07

The outstanding loans were, thus, very much higher than either the fixed capital or working capital. This shows the financial position of the industry.

The structure of costs of production is given below:—

(Rs. in lakhs)

Item

1973-74

1975-77

Wages to workers

82,35.32

1,13,34.94

Total emoluments

1,01,44.49

1,47,17.87

Fuel consumption

23,37.29

57,66.79

Material consumed

2,40,74.19

3,69,71.19

Other inputs                

              N.A.

59,14.98

Total inputs

3,08,59.16

4,86,52.96

The wage bill and emoluments might have increased over the period under study due to the rise in cost of living index, the dearness allowance to be paid being linked with the cost of living index. The rise in the value of fuel consumption can be attributed to the enormous rise in the prices of furnace oil. The power cut and several restrictions on use of energy had required the mills to resort to costlier self-generated means of power. The rise in costs of materials can be accounted for by the rising cost of raw cotton, the hike in the price of long staple cotton and the price of viscose fibre. The increase in railway freight and in the prices of dyes, chemicals, stores, spare parts and packing material appear to have contributed to the tremendous rise in the value of inputs in the Bombay industry. (Bombay Millowners' Association (information supplied by it).)

The value of plant and machinery was enumerated at Rs.2,03,57.11 lakhs and Rs. 2,22,75.16 lakhs, respectively in,1973-74 and 1975-77. The structure of output of the industry is analysed below:—
(Rs. in lakhs)

Item

1973-74

1975-77

Value of products

4,73,20.63

6,10,73.60

Value of other output

N.A.

81,13.16

Total output

5,03,18.92

6,91,86.76

Depreciation

12,07.47

13,27.58

Value added on manufacture

1,82,52.82

1,92,06.22

There was, thus, an all-round rise in the value of products and output over the years under reference. Though a part of the rise could be accounted for by the rise in prices, there appears to be a rise in the output of the industry. The Annual Survey of 1975-77 computed the factory payments at Rs. 28,34.70 lakhs and net income at 1,63,71.52 lakhs per annum.

The above analysis leads us to some deductions. Emoluments comprise a large share of the total cost of production in this industry. It is a labour intensive industry unlike chemicals industry or electrical machinery industry. The value of output was about one and a half times the total inputs. The net income of the Bombay mills was much more than 50 per cent of their capital investment.

It may be useful to elucidate some of the other aspects of the industry.

The sector of mills engaged in cotton spinning, weaving, shrinking, sanforising, mercerising and finishing of cotton textiles is by far the biggest and the most important one among the other sectors of the cotton textile industry from all points of view. It provides employment to about 1.82 lakh persons out of a total of about 1.95 lakhs in the entire industry. The employment in this sector has also registered a rise of about 4,000 in the period 1975-77 over that in 1973-74. Though this rise in employment may not appear to be sizeable, it is significant in view of the measures of rationalisation of production and capital intensive methods of production adopted by some of the mills. The capital investment in this sector of the industry amounts to about Rs. 2,87.25 crores as against the investment of Rs. 3,00.21 crores in the entire industry. The capital investment has also registered a significant rise in 1975-77 over that in 1973-74. Even   after   granting   allowance   for   rise due   to   rise   in   prices, 104  there appears to be real rise in capital investment, fixed capital and working capital during the period of comparison. The value of inputs of this sector also forms a very sizeable proportion of the value of inputs in the entire cotton industry, for example Rs. 4,40.89 crores as against Rs. 4,86.52 crores. The value of products of the cotton spinning, shrinking, weaving, sanforising, mercerising and finishing industry forms almost about 97 per cent of the value of products of the total industry. In respect of the value added on manufacture which is one of the most important aspects in the study of industries, this sector accounts for about 92.65 per cent of the value added on manufacture in the entire cotton textile industry.

It is thus evident that the spinning, weaving, shrinking, sanforising, mercerising and finishing sector of the cotton textile industry is the core sector of the industry.

The next sector second in importance is the one engaged in printing, dyeing and bleaching of cotton textiles. This sector of the industry is comparatively of later origin than the cotton spinning and weaving sector. It received encouragement for growth mainly after Independence of India. Its progress after Independence is attributable to the ban on imports of highly processed and finer qualities of cloth from abroad, and also to the development of technical know-how in the country. The factories in this sector are smaller in size, some of the units being very small in comparison to the spinning and weaving mills. It may roughly said to be an ancillary industry to the cotton textile industry.

In the very nature of things the cotton ginning, cleaning and baling factories form a minor sector of the cotton textile industry. A major proportion of the raw cotton required by Bombay textile mills is processed, ginned and baled in the centres of production of cotton in the districts of Maharashtra and Gujarat. If is more economical for the mills to purchase the ginned and processed raw cotton from outside the city. It is however a historical accident that 14 ginning and baling factories are still in existance in this crowded city where no space is available for location of more composite units warranting a higher degree of technocracy.

Weaving and finishing of cotton textiles in powerlooms is also a very small sector of the cotton textile industry in Bombay. A majority of the units are in the small scale sector and managed on a proprietorship basis. In the last about 20 years, handlooms have been yielding ground to powerlooms on account of the higher productivity, economic viability and the better quality of powerloom cloth. The powerloom sector, though a minor one in Bombay, accounts for a good amount of production, as it enjoys a number of incentives from government as also substantial excise concessions which are denied to the cotton mill industry.

In 1977 there were 24 powerloom factories with a capital investment of Rs. 29.40 lakhs and working capital of Rs. 27.24 lakhs. Though they provided employment to only 595 persons, the value of their out-put was Rs. 2,91.82 lakhs, which meant quite a high per capita out-put per worker. The value added on manufacture, viz., Rs. 48.62 lakhs in 1977, also meant a sizeable value added per capita. The industry however suffers from under-utilisation of installed capacity which is sometime, due to financial constraints, marketability of cloth or inadequate power supply.
There were 12,196 authorised powei looms in cotton weaving and 12,800 for art silk weaving in Bombay in 1978.

As per report received from the Bombay Millowners Association, (Officially received on 25th February 1982.) there are 44 cotton spinning and weaving mills owned by 36 mill com­panies, in the private sector in Bombay, besides the mills controlled by government. Besides, there are eight processing factories, three woollen mills and two art-silk factories, in the private sector which are members of the Association. The Bombay cotton textile mills provide employment to about two and a half lakh persons. The paid-up capital of the mills amounts to about Rs. 70 crores. They produce cloth of every description, both pure cotton and blended fabrics and man-made fibres. The value of production of the cotton mills in the city is estimated at Rs. 15,00 crores per annum, of which products worth about Rs. 250 crores are exported to foreign countries. The Bombay cloth exports are destined to almost all continents of the world. The Bombay cloth enjoys a wide market all over the country.

The Bombay mills obtain raw cotton from Maharashtra as also from the adjoining States of Gujarat, Karnatak and Andhra Pradesh. The mills combine man-made fibres with cotton for production of certain categories of cloth.

The consumption of raw cotton and production of cloth and yarn by the Bombay mills is given below (Notes and News, December, 1981, Millowners Association) :—

Year

Cotton consumed ('000 bales)

Production of

Yarn
(in million kgs.)

Cloth
(in million metres)

1976

1,246

168

1,069

1977

1,048

138

896

1978

1,126

153

927

1979

1,078

148

863

1980

1,196

167

971

STATEMENT SHOWING CLOTH PROCESSED BY COTTON TEXTILE MILLS IN BOMBAY CITY
(The Indian Textile Bulletin, Textile Commissioner, Bombay.)

(Figures in million metres)

Year

Bleached

Piece
Dyed

Printed

Mercerised

Sanforised

Other
Chemically
processed

Total processed

Total
Production of Cloth

1971 

553

300

249

293

111

21

1,392

1,120

1972 

567

326

780

257

104

32

1,566

1,243

1973

506

284

250

257

120

34

1,451

1,169

1974 

510

225

221

222

80

23

1,281

1,125

1975 

497

254

321

257

94

23

1,448

1,074

1976 

510

217

281

309

133

23

1,474

1,069

1977

591

273

295

387

100

52

1,798

1,896

1978 

623

313

305

410

221

55

1,927

928

1979

585

265

286

329

222

41

1,759

865

Problems of Cotton Textile Industry : The Cotton Textile industry of Bombay, as of India, is facing ominous conditions of stagflation at present. It has a twin problem of rising cost of production and falling demand for cloth. The industry is also facing the problem of consumer resistance. The escalating prices of crude and petroleum products has been a powerful catalyst of the cost hike. The rising cost of raw cotton and the uncertainty of supply have contributed to the rise in production cost of cloth. Though the rise in price of long staple cotton was only 20 per cent in 1979-80, the price of medium staple varieties increased very steeply. The price of viscose fibre which is combined with cotton fibre increased from Rs. 12.72 in 1978-79 to Rs. 18.42 per kg. in 1981.

The industry is suffering from infrastructural deficiencies as well. Power cuts continue to plague the mills which are required to resort to costlier self-generated means of power. The price of furnace oil escalated by 79 per cent in 1981 (Rs. 2,344 per kilolitre in December 1981.) over 1979. Besides the increase in railway freight, the industry is subjected to a rise in prices of dyes, chemicals, stores, spare parts and packing materials. Wages in the industry registered a considerable rise, by about 24 per cent from 1979 to 1981, (As per Millowners' Association,) which have added to the spiral of rising costs.

As per the Millowners' Association, the cost of production of cloth by the Bombay mills has increased by about 30 per cent in 1981 over that in 1979.

The industry is reported to be facing resistance from the consumer who is already oppressed by escalating prices and falling purchasing power of money. Even the Market Research Wing of the Textiles Committee has admitted that any rise in the prices of cloth would adversely affect the off-take of cotton textiles. This oldest organised industry which is also the mainstay of about 2.50 lakh persons is in the grip of a stagflation.

A mention of the role of the Bombay Millowners' Association would not be out of place. It is one of the oldest trade organisations in the country, established on 1st February 1875. It represents 120 cotton mills, eight dyeing and processing factories and three woollen mills from all over the country. All the mills in the private sector in Bombay, viz., 44 cotton spinning and weaving mills, eight processing mills, three woollen mills and two art silk mills, are its members. The Association advocates the cause of the industry in regard to its advancement, safe­guarding of interests and arbitration with the government in matters of commercial and fiscal policies relating to the industry. Its services to the Indian cotton industry were quite illustrious in the pre-Independence period when the mills particularly needed protection against cut-throat competition from Japan and England. The textile mills in Bombay owed a lot to this organisation in those days of alien rule.

The role of the Association during the post-Independence era has been more in the nature of establishment of amicable relations among the members, safeguarding their interest, settlement of disputes, advocating the cause of the industry as regards fiscal measures, import and export policies and improvement of infrastructure facilities to the industry.

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ART SILK AND MAN-MADE FABRICS

At the beginning of this century there were only two silk mills in Bombay, viz., the Sassoon and Alliance Mill and the Chhoi Silk Manu­facturing Mill. The former was situated at Byculla near the Victoria Garden and was established in 1875. It was a joint-stock concern, working with a capital of Rs. 10 lakhs. It was the largest mill in the Bombay Presidency manufacturing silk yprn and cloth for the Indian and Burma Markets. Its annual production was about 70,000 lbs. The progress of this mill was hampered by Japanese competition which captured the Burma and Indian markets.The latter mill was situated at Parel and was established in 1895, and was working with a capital of Rs.5 lakhs. During the subsequent years conditions of depression and the Japanese competition had affected the production of these mills and they were closed.

The industry in Bombay has made considerable progress after the sixties. During the period 1975-77 as many as 209 factories in Bombay were engaged in spinning, weaving and finishing of man-made fabrics.

The genesis of manmade textile industry in India was due to protec­tive measures given to the cotton textile industry by the Government of India. About three and a half decades ago the Government of India imposed a levy on rayon fabrics imported into the country to curb the severe competition faced by the cotton textile industry through imports of rayon fabrics from Japan. Such tariff imposts on rayon fabrics indirectly induced the importers of such fabrics to import rayon yarn and manufacture the fabrics in the country itself. Thus the beginning of man-made textile industry in India was marked by the setting up of weaving units around the years 1935-37.

The idea of manufacturing rayon in India was first mooted in 1940, when the question was considered by the Board of Scientific and Industrial Research established by the Government of India. The Second World War gave impetus to the development owing to the stoppage of supplies of foreign rayon yarn. In 1944, the Board of Scientific and Industrial Research investigated the project with the object of selecting suitable sites with certain facilities for the erection of rayon plants. After surveying the resources of the country, the Board found that there was considerable scope for establishing such an industry in India.

The first commercial production of viscose rayon filament yarn in the country commenced in July 1950 when a plant was set up by Messrs. Travancore Rayons Ltd. in Kerala. In March 1951 another rayon plant, namely the National Rayon Corporation Ltd. went into production on the outskirts of Bombay with an annual capacity of 2.54 million kg. The Century Rayon, the third viscose rayon plant, went into production in October 1956 near Bombay, with a capacity of 1.82 million kg. per annum.

Besides, the production of viscose tyre cord yarn required for manu­facture of vehicular rubber tyres and other industrial products has also commenced.

At the beginning of the Third Five Year-Plan, there was no production of synthetic fibres like nylon or polyester in the country. During this period new units of nylon filament yarn and polyester filament yarn were set up. Of them, the Nirlon Synthetic Fibres and Chemicals Ltd. with a capacity of 0.7 million kg. and the Chemicals and Fibres of India Ltd. with a production capacity of two million kg. of polyester staple fibre per annum were set up during the Third Five-Year Plan in Bombay. The Nirlon Synthetic Fibres and Chemicals Company has a factory at Goregaon, while the plant of the Chemicals and Fibres of India is in Thane district. The Nirlon Fibres and Chemicals Ltd. has an installed capacity to produce 3,528 tonnes of nylon yarn, 922 tonnes of polyester, 2,190 tonnes of tyre cord and 1,200 tonnes of nylon conveyor belts. The sales turnover of this pioneer concern was as high as Rs. 60.12 crores in 1978-79 and Rs. 71.75 in 1979-80. ( Centre for Monitoring Indian Economy, Bombay, A State-wise Picture of Large Scale Industrial Activity, 1981.)  The Chemicals and Fibres of India Ltd. which is producing polyester staple fibre has an expanded capacity of 4.5 million kg. per annum.

According to the Final Report of the Task Force on Textile Industries, cellulosic fibres accounted for almost 75 per cent of the total production during the Fourth Plan. These fabrics are much cheaper and, to an increasing extent, are based on indigenous rayon grade wood pulp. On the other hand, synthetic fabrics made from nylon and polyester fibre/ filament yarn have been based on imported raw materials such as D.M.T. and caprolactum.

Urban consumers have shown a definite preference for the elegant, economic and easy care man-made fibre fabrics, either in the pure form or in blends, and their use is spreading into the rural areas also. Man-made fibres are being increasingly used for industrial as well as house­hold uses. However, a much more distinct picture of end-uses will emerge when man-made fibres become available in much larger quantities.

Most of the cotton textile mills in Bombay manufacture man-made fabrics besides cotton cloth. The growing popularity of synthetic fabrics, has encouraged the mills to undertake the production of these fabrics. Production of pure silk fabrics is now a very minor section of industry. And there is no sericulture in Bombay. Many of the factories engaged in man-made fabrics produce art silk goods also. The following analysis is aimed only at the synthetic and man-made fabrics industry.

The spinning, weaving and finishing of synthetic fibres, rayons, nylons, etc. has emerged as an important industry during the last about two decades. It is an organised industry with 209 registered factories providing employment to about 20,267 employees. The structure of the industry in Bombay can be studied from the statistics based on the Annual Survey of Industries during 1973-74 and 1975-77 given in Table No. 9.

Though there are many units in Bombay, information about only a few is available. The Orkey Silk Mills at Saki Naka in Bombay produced and sold cloth worth Rs. 36 crores in 1979-80. The L.D. Textile Industries with a plant at Vikhroli is another producer of synthetic fabrics, polyester and blended yam and knitted fabrics. The turnover of its sales was to the tune of Rs. 7.15 crores in 1979-80. The Beekay Textile Mills in Bombay had a sales turnover of Rs. 5 crores in 1978-79. The other reputed manu­facturers in Bombay are the Shakti Mills at Mahalaxmi, Ambika Mills at Mahalaxmi and the Kamala Mills at Lower Parel. (A State-wise Picture of Large Scale Industrial Activity 1981)

TABLE NO. 9

SPINNING, WEAVING AND FINISHING OF SYNTHETIC FIBRES,
RAYONS, NYLONS, GREATER BOMBAY, 1973-74 AND 1975-77

(Figures of Rs. in lakhs)     

Item

1973-74

1975-77

1. No. of estimated factories (Nos.)

180

209

2. Fixed capital           

24,97.28

13,89.88

3. Working capital

25,04.15

12,50.92

4. Capital investment

67,99.50

47,70.97

5. Outstanding loans

37,25.12

38,11.33

6. Mandays worked (Nos.) 

N.A.

61,19,181

7. All workers (Nos.)

16,338

16,759

8. All employees (Nos.)

20,025

20,267

9. Wages to workers

7,32.27

9,29.12

10. Total emoluments

10,69.94

12,90.70

11. Fuel consumed

2,51.21

5,05.20

12. Material consumed

84,00.89

96,50.51

13. Other inputs

N.A.

3,00.80

14. Total inputs

95,45.27

1,31,58.51

15. Plant and machinery

    31,10.51

27,64.95

16. Value of Products

   1,12,97.70

1,29,92.45

17. Value of other output

N.A.

27,38.71

18. Total output

   1,19,89.21

1,57,31.16

19. Depreciation

3,85.17

2,64.58

20. Value added on Manufacture

20,58.76

23,08.07

21. Factory payments       

N.A.

5,97.97

22. Net income

N.A.

17,10.10

Top

WOOLLEN MILLS

The first woollen mill known as the Bombay Woollen Manufacturing Company was established in 1888 with a nominal capital of Rs. 4 lakhs. In the same year the Sohrab Woollen and Cotton mill was established with a capital of Rs. 7.5 lakhs. The latter contained 60 looms and 2,160 spindles, and produced blankets, broadcloth, and gray Oxford clothing for army and police. The outturn was nearly two lakh pounds. In 1898, the mill removed its machinery for spinning and weaving of wool, and replaced the same by machinery for cotton. In 1909, there were two woollen mills, namely Bombay Woollen Mill and Coronation Woollen Mill. The Duxbury Wdollen Mill, established in 1901, went into liquidation in 1909. The Bombay Woollen Mill produced worsted yarn from Australian wool and wove blankets, serges for army clothing. The Coronation Woollen Mill knitted jerseys and caps from imported worsted yarn.

At present there are 11 woollen mills in Bombay of which three are large. The three large mills are members of the Bombay Millowners Association, and they together account for the major share of production of woollen garments, rugs, blankets and other products.

As per the Annual Survey of Industries there were 9 wool spinning, weaving and finishing mills in Bombay in 1973-74 and 11 mills in 1975-77. They provided employment to 2,473 and 2,373 persons in 1973-74 and 1975-77, respectively. The mills worked for 6,98,949 man-days per annum during the 1975-77 survey period. The position about capital of these companies is given below:—

(Rs. in lakhs)

Item

1973-74

1975-77

Fixed capital

1,71.04

1,64.02

Working Capital

1,91.52

1,27.11

Capital invested

5,70.99

6,47.37

Outstanding loans   

4,59.90

4,55.59.

The structure of costs of production in the industry in Bombay is given below:—

(Rs. in lakhs)

Item

1973-74

1975-77

Total emoluments

2,33.87

1,32.51

Fuel consumed

24.46

32.09

Material consumed

5,29.57

6,13.83

Other inputs

N.A.

1,68.41

Total inputs

6,58.79

8,14.33

Emoluments appear to form a small proportion of total inputs while raw materials account for 75 per cent of the total inputs. The value of plant and machinery of the mills was estimated at Rs. 2,10.79 lakhs and Rs. 2,62.29 lakhs in 1973-74 and 1975-77, respectively.

The structure of output of the Bombay woollen industry is given below:—

(Rs. in lakhs)

Item

1973-74

1975-77

Value of products 

8,39.90

9,90.81

Value of other output

N. A.

74.97

Total output

8,67.09

10,65.78

Depreciation

21.57

21.68

Value added on manufacture

1,86.72

2,29.77

The above figures show that there was a conspicuous rise in production, though there was a fall in employment and emoluments paid. The value of output was a little over 125 per cent of inputs. The value added was over one-fourth of the value of total inputs.

The factory payments by the mills were computed at Rs.83.55 lakhs and net income at Rs.1,46.22 lakhs per annum in 1975-77.

Besides the wool spinning, weaving and finishing mills for which the analysis is given above, there were several units engaged in dyeing and bleaching of woollen textiles (27); wool cleaning, baling and pressing (2); wool spinning and weaving other than in mills (3); and other processes (5). The figures in brackets show the number of units as per the Annual Survey of Industries in 1973-74. The dyeing and bleaching of woollen textile units provided employment to 2,106 persons in the same year.

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TEXTILE PRODUCTS

The textile products industry of Bombay is an important segment of manufacturing activity, as it satisfies consumerneeds and provides employment to more than 22,717 persons. There is also a good amount of caitalp investment in the industry. The value of production and value added on manufacture in this industry make it essential to deal with it separately. This industry is conceived to include manufacture of textile products, such as, knitted apparel; threads, cordage, ropes, twines, nets; embroidery and making of crapes, laces and fringes, carpets, rugs; ready-made garments; rain coats and hats; curtains and mosquiio nets; oil cloth and tarpaulin; coir products, and linoleum, pading and upholstering textiles.

The history of this industry in Bombay is traceable to the last quarters of the previous century. At the beginning of this century hosiery was manufactured by five cotton mills and two separate hosiery factories.They together manufactured about 3,82,000 lbs. of hosiery goods per annum. In 1892 there were three hosiery factories, one of which was closed. In 1896, there were two factories which remained constant even in 1909. The industry in Bombay suffered from keen competition from Japanese and European imports in those days. The obsolete machinery was another handicap which retarded its growth. (S. M. Edwardes' Gazetteer of Bombay City and Island, 1909.)

The industry received growth stimulus during the First World War when imports were practically halted. The real impetus to growth was however provided by the Second World War during which foreign supplies were curtailed and there was an immense demand from the defence services. The demand for the products, such as, ready-made garments and hosiery, grew very rapidly with growing urbanisation and increasing incomes.

The Dawn Mills in Bombay is a reputed concern producing banians, briefs, vests, jerseys and many other hosiery articles. The industry however comprises many small units. A number of small units making ready-made garments have come into existence. They employ master-tailors and other skilled personnel for stitching garments. They cater to domestic demand and also export a considerable quantity of garments to the countries in Africa, the middle-east, south-east Asia and South America. It is evident from enquiries that many of the units are dependent for their sustained growth on the conditions in the export markets. A good amount of hosiery articles are also exported by the producers in Bombay.

As per the Annual Survey of Industries, there were 201 registered factories in 1973-74, and 375 in 1975-77 in Bombay. These units provided employment to 13,925 persons (including 11,352 workers) and 22,717 persons (including 18,475 workers), respectively in the two survey periods. The factories worked for 64,99,849 man-days per annum in 1975-77. The position of capital of the industry in Bombay is given below:—

(Rs. in lakhs)

Item

1973-74

1975-77

Fixed capital

5,68.61

11,27.68

Working capital

7,51.48

10,52.81

Capital invested

1,803.24

31,86.77

Outstanding loans

19,56.84

34,47.08

The above figures show a tremendous progress over a span of 2/3 years. Making allowance for a rise due to higher prices, there must be a considerable rise in real investment.

 The structure of costs of production of the units can be studied from the following figures:—

(Rs. in lakhs)

Item

1973-74

1975-77

Wages to workers

3,59.91

6,85.12

Total emoluments

5,17.42

10,11.71

Fuel consumed

56.64

1,60.57

Material consumed

35,08.09

73,03.83

Other inputs

N.A.

25,59.38

Total inputs

42,23.58

1,00,23.78

The above statistics, self-evident as they are, show a huge increase ranging from 200 to 250 per cent. This increase is quite commensurate with the increase in number of factories, employment and capital investment over the period under reference.

The value of plant and machinery was estimated at Rs.8,88.81 lakhs in 1973-74 and Rs.17,05.54 lakhs in 1975-77. The structure of production by the factories is analysed below:—

(Rs. in lakhs)

Item

1973-74

1975-77

Value of products

49,08.70

99,15.69

Value of other output

N.A.

22,23.62

Total output

52,23.20

1,21,39.31

Depreciation

77.68

1,58.09

Value added on manufacture

9,21.93

19,57.44

Even after making allowance for rise due to rising prices, there was thus a real growth in production by the factories in Bombay. It was quite commensurate with the increase in costs of inputs, employment, capital and number of factories.

The factory payments were computed at Rs. 5,07.23 lakhs and the net income at Rs. 14,50.21 lakhs per annum as per the 1975-77 survey.

The above analysis lead us to some conclusions. Wages constitute a smaller share of the costs of production. The value of output was about 121 per cent of the inputs. This reveals the profitability in the industry. The value added on manufacture was about one-fifth of the inputs, and about 60 per cent of the capital invested in the industry. The net income was about 40 per cent of the capital invested. These factors reveal the high rate of returns on capital.

As per the Annual Survey of Industries separate statistics are available for manufacture of all types of textile garments. The same are included in the analysis of the main industry given above. It may however be stated that manufacture of garments is the major sector of the textile products industry. There were 209 factories providing employment to 13,720 persons in this sector in 1975-77. The production in this sector was also quite large, e.g. Rs. 50,73.40 lakhs per annum during the survey period.

The next in importance are the knitting mills, for which only the 1973-74 Annual Survey compiled separate statistics. There were 44 knitting mills which provided employment to 2902 persons in Bombay in 1973-74. Their production was computed at Rs. 13,59.37 lakhs in the same year.

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HANDLOOM WEAVING

Handloom weaving is net a very important industry in Bombay. Though there was a large class of weaver craftsmen upto the middle of the nine­teenth century (For details refer earlier pages in this chapter.)  the craft has decayed fast with the growth of the mill industry. Another limiting factor has been the paucity of accommodation and the exorbitant cost thereof. The government has however granted protection and patronage for this industry after Independence. The handloom weavers are new recipient of very soft loans, fiscal concessions and marketing aid, through institutional agencies.

There were 391 handloom weaving establishments in the city with a total of 858 looms, of which 773 were in working condition in 1976. (Growth of Industries in Maharashtra, Govt, of Maharashtra.)  All these looms were engaged in cotton weaving. They provided employment to 1,627 persons in the pre-weaving (854) and weaving process (773). Of the total number of handlooms viz., 858, only 444 were in the co-operative sector, the rest (414) being in the private sector. Of the functioning looms (773), 263 were working for co-operative societies and 510 were working independently.

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CHEMICALS AND CHEMICAL PRODUCTS

The chemicals manufacturing industry is a multi-product and multi­process industry. From a wide range of basic raw materials it manufactures several heterogeneous products for diverse consumers in many sectors of the economy. Very often, within the industry the products of some factories form the raw material for others. There are also a number of cross linkages. A wide range of inorganic chemicals, such as sulphuric acid, hydrochloric acid, soda ash and caustic soda are used in bulk quantity as process chemicals by other industries, such as, iron and steel, cement, paper, cotton textiles, synthetic textiles, soaps and detergents. The industry is of vital importance to all sectors of the economy. It contributes to general economic development in diverse directions, such as, fertilisers and pesticides for agrarian progress, drugs and pharmaceuticals for life saving, basic chemicals and petro-chemicals for industrial growth, paints and dyestuffs for varied uses, soaps and cosmetics to meet consumer necessities.

The chemical industry is of recent origin. Though it started in a modest way in the early decades of this century, it was only after Independence that there was real growth. A sulphuric acid plant established in 1913 in Bombay was a forerunner in the field. The chemical industry however registered a faster growth in Bombay after 1961. The first petrochemical unit was started in 1966, and over the years, there has been a steady growth of this industry.

Although of recent growth, the Indian chemical industry has been one of the fastest growing sectors of the Indian economy, with an overall growth rate of 17 to 18 per cent per annum. This growth rate is spectacular in comparison to the rate of general industrial growth which is estimated to be about 7 to 8 per cent.

Today this industry ranks fourth in India after textile, iron and steel and engineering in terms of output. It contributes as much as 7.4 per cent of the total gross output and 8 per cent of the net output turned out by all manufacturing industries in the country. Though it is not a labour intensive industry it provides employment to 1.30 lakh workers.

To review the growth of the industry in the past, the Tariff Board of 1928 described the chemical industry as a key industry. Prior to the out­break of the First World War, most of the chemicals and products were imported. There was some expansion during the period preceding Second World War. The war provided a considerable stimulus to its growth. There was a three-fold increase in the production of miscellaneous heavy chemicals too during the war period. It is noteworthy that the British Government did not encourage its growth by any kind of incentives or assistance. After Independence the industry set on the path of progress. The real stimulus to growth of the chemical industry came from the implementation of the five-year plans which gave it a big boost, as also from the growing demand for chemical products from other sectors of industry. It experienced an accelerated growth rate during the sixties, and has now become an important foreign exchange earner. The establish­ment of oil refineries and steel plants in the country facilitated supply of bye-products which are useful for the growth of chemical industry. Thus benzene and other bye-products from coke ovens, naphtha from refineries, and ethyl alcohol from sugar factories, became the important raw materials for the chemical factories. The growth of petrochemicals gave a further impetus to this industry.

The early units were mainly based on alcohol as feedstock in some cases, and imported penultimates in the case of dyestuffs and pharmaceuticals. When the petroleum refineries based on imported crude were established, their bye-products provided aromatics as feedstock. They gave an impetus to the growth of organic chemical industry, and hence, several large factories, such as, National Organic Chemical Industries Ltd. (NOCIL), Union Carbide, Herdillia Chemicals and Hindustan Organic Chemicals (HOC) were established in Bombay and its periphery.

The major portion of the chemicals industry in India is situated in Maharashtra and Gujarat. The Bombay and Thane industrial complex has been a congenial ground for its growth. The reasons for the present localisation of the industry as above are: (i) availability of raw materials, (ii) nearness to refineries, (iii) infrastructure facilities, (iv) an established market for pharmaceuticals, dyestuffs, chemicals and plastics, and (v) availability of a cadre of technicians and technocrats. The two crude oil refineries, and other companies such as NOCIL, HOC, Union Carbide, Herdillia, several caustic soda, chlorine and sulphuric acid plants, Rashtriya Chemicals and Fertilizers Limited, Colour Chem, Amar Dye Chem, IDI, and several other plants in Bombay and its environs have contri­buted massively to the growth of this industry therein. The exploration of the Bombay High oil and gas fields has opened up fresh opportunities for a very accelerated growth in the near future. The gas separation plant at Uran and the proposed petrochemical complex in the area nearby will further open fresh opportunities for the growth of the industry. (The Indian Textile Journal, December, 1981 (New Vistas in  Organic  Chemical Industry).

The chemical industry of Bombay comprises the manufacture of a wide variety of chemicals and products thereof, which can conveniently be divided into various groups, such as, inorganic chemicals, organic chemicals, petrochemicals, agricultural chemicals, drugs and pharma­ceuticals, dyestuffs, spirits, liquor preparations, etc. The industry is highly heterogeneous in the sense that it includes large volume low-cost products, such as heavy chemicals, low volume high-cost products such as drugs and pharmaceuticals, and fine chemicals. It can generally be characterised as science-based ajad technology oriented, liable to a high rate of obsolescence, and highly capital intensive. It is in no way a labour intensive industry like the cotton textile industry. The element of entrepreneurial risk is by no means small. Another characteristic of this industry is environmental pollution which is also a major problem for Bombay.

The first Chemical factory in Bombay viz., the Kemp and Company was established in the year 1868 which started manufacturing drugs and pharmaceuticals. It was followed, as per available record, by the Zandu Pharmaceutical Works in 1910, which undertook production of ayurvedic and allopathic preparations. The Tata Oil Mills, which has now a number of factories in India was established in 1917 in Bombay for the manufacture of soaps and oils.

The Brumer, Mond and Company incorporated in 1923 as a private company, for the manufacture of chemicals and a wide range of textile auxiliaries, gave an important lead to the chemical industry in Bombay. This company was changed in 1929 to Imperial Chemical Industries (India) Limited, and in 1964 to I.C.I. (India) Private Limited. In March 1978 it was converted into a public limited company, and was renamed as Crescent Dyes and Chemicals Limited. It was followed by incorpora­tion of the H. J. Foster and Company in 1924 as a private company, which was subsequently renamed as Glaxo Laboratories in July 1968 which became a public limited company. It is now one of the leading manufacturers of a wide range of medicinal preparations, sophisticated antibiotics, life-saving drugs, vitamin preparations, infant foods, basic drugs, laboratory chemicals, veterinary products, etc. The May and Baker was incorporated in 1928. It is another celebrated company engaged in the manufacture of basic drugs, a wide range of pharma­ceuticals, photographic specialities and other chemicals. Being initially incorporated as a private company in 1928, it was converted into a public limited company in 1979. The other pioneering concerns in the chemical industry of Bombay were the Hindustan Lever which was incorporated as a private limited company in October 1933, and the Indian Oxygen which was founded initially in Bengal in 1935. The Chemical, Industrial and Pharmaceuticals Laboratories established in 1935 in Bombay also belongs to the category of pioneering concerns. It manufactures drugs, pharmaceuticals, fine chemical steroids, hormones, alkaloids and natural products.

From these beginnings, the industry has made tremendous progress, with plants springing up right in the heart of the city as also in the suburbs, covering practically all its major branches. The development of this industry has directly contributed to the all-round progress of industrialisation not only of this city but also of the entire country.

The progress of the industry has been particularly remarkable since the last two decades. Some of the segments within the industry are not only undergoing a process of self-propelling growth, but also have a potentiality to export the products on a considerable scale. With the fast growth of the petrochemicals industry and the growing demand for modern chemicals, drugs and pharmaceuticals, the industry's future indeed looks very bright.*

As stated earlier the growth of the chemicals and chemical products industry in Bombay is mainly marked from 1923. It received tremendous encouragement during the Second World War and the post-war era. The spurt in industrial growth and acceleration of demand for chemicals and drugs by other industries gave an impetus to this industry from 1943 onwards. The difficulties in imports of the chemical products on account of the World War also made it imperative on the part of the Government to encourage the growth of the chemical industry indigenously. Thus, the increase in effective demand for chemical products from other indus­tries and consumers, in the face of shortage of supply due to war, initiated a process of self-propelling growth of the industry in cities like Bombay and Calcutta.

The stage of the Bombay chemical products industry is such that the city now possesses technocrats of high quality who can man chemical enterprises in diverse fields of pharmaceuticals, fertilizers, petrochemical down-stream plants, designing of alcohol-based industries as well as in technologies for plant protection chemicals.

The growth of the industry from 1923 to 1957 in Bombay is shown in the statement given below. Figures in brackets show percentage of employment in chemicals and chemical products industries to total factory employment in each respective year :—

Chemical Industry in India, 1976-77

Source.Kothari's Economic and Industrial Guide of India, 1980-81.

1. No. of Factories

4,52

2. Investment (Rs. lakhs)

30,28,17

3. Employment

3,73,314

4. Inputs (Rs. lakhs)

31,88,34

5. Output (Rs. lakhs)

42,63,07

6. Value added on manufacture (Rs. lakhs)

8,88,83

7. Net income generated (Rs. lakhs)

7,31,20

Growth-rate of Chemical Industry During 1951-73

Period

Compound Growth fate of Chemical Industry

Compound Growth rate for all Industries

1951-55
1956-60
1961-65
1966-73

9.1
10.7
9.0
8.9

7.3
6.6
9.0
4.5

employment in chemicals products industries to total factory employment in each respective year:-

Factories in chemicals and chemical products Industry and Employment,
Greater Bombay, 1923-1957
(D, T. Lokadawala op. cit.)

Year

No. of working factories

Employment in reporting factories

1923

9

759
(0.4)

1925

20

5,471
(2.6)

1930

22

6,289
(3.4)

1935

30

5,163
(2.7)

1940

36

3,535
(1.5)

1945

75

7,561
(1.9)

1950

146
(16)

11,465
(3.0)

1955

191
(18)

14,275
(3.5)

1957

195
(15)

15,855
(3.7)

The principal products of the chemical industry in Bombay are listed below:—

Dyes of Naphthal series, fast bases, stabilized azoices, beta naph-thal, BON acid, dyestuff intermediaries, auxiliary chemicals for plastics, textile, leather and other industries; metal chemicals, oxygen, acetylene and nitrogen gases; stabilizers and additives for P.V.C. and other poly­mers, leather auxiliaries, and polyester/polymeric type of plasticizers; toilet goods; P.V.C. films and sheet laminates, entruded acrylic and high impact polystyrene sheets and a wide range of art paper and chrome paper; alkaloides and natural products; fine chemicals, synthetic organic dyes, plastic moulding powders, and industrial resins; basic chemicals, an extensive range of textile auxiliaries and heat treatment salts; agro-chemicals; Fluoro-chloro-methane gases, Hydrofluoric acid, aluminium flouride; pesticides, fungicides, fumigants, veterinary products; ethylene oxide, condensalts, sulphonated products, ammonium compounds, emulsifiers for insecticides and pesticides; soaps, detergents, edible fats, glycerine, cattle and poultry feeds, nickel catalyst, fine chemicals; poly-ninyl acetate dispersions; industrial and medical gases, such as, oxygen, nitrous oxide, nitrogen, argon, dissolved acytelene, high altitude oxygen pure gases, liquid oxygen explosives, electrodes, anasthetic and analgesic oxygen therapy equipment, and medical pipeline accessories, air separation gas plants and associated cryogenic equipment; photographic chemicals, rubber chemicals and rubber chemical intermediates; hydro­gen peroxide and sodium perborate; glucose powders, calcium gluconate, ferrous gluconate; nylon filaments yarn, polyester filament yarn, nylon tyrecord and tyre fabrics, organic and inorganic hormones, rectifiers, breweries, spirits, liquors, wines; polystyrene plastic moulding material, styrene monomer, ethyl benzene, industrial alcohol, potable liquors; synthetic rubbers, solid P.V.C. conveyor belting; paints, varnishes, synthetic enamel, red oxide, decorative paints and a number of other organic and inorganic chemical products. The above list is by no means complete.

The pharmaceutical and drugs wing of the industry in Bombay manu­factures all kinds of pharmaceutical preparations, insulin injections, anti-dysentery drugs, anti-rheumatic drugs, vitamin preparations, anti­histamine drugs, antacids, infant foods, basic drugs, laboratory chemicals. Many of the companies manufacture the most sophisticated of broad spectrum antibiotics, oxytetracycline, anti-diabetics, chloropropamide, anti-T.B. drugs; protein hydrolysate, tranquilisers, steroids, ammo-acids, and a wide range of life-saving drugs. The Bombay industry is not behind in ayurvedic and homoeopathic medical preparations.

In view of the importance of the drugs and pharmaceutical industry, it is dealt with separately in this chapter.

The Annual Survey of Industries which is the most authoritative data on the structure of the chemicals and chemical products industry in Bombay furnishes a two-digit data for the manufacture of chemicals and chemical products (except products of petroleum and coal). The A.S.I. also furnishes three-digit data for seven sectors of the industry as under:—

1.Manufacture of industrial organic and inorganic chemicals and goods such as acids, alkalies and their salts,          gases like acetylene, oxygen, nitrogen, etc.
2.  Manufacture of fertilisers and pesticides.
3.  Manufacture of paints, varnishes and lacquers.
4.  Manufacture of drugs and medicines.
5. Manufacture of perfumes, cosmetics, lotions, hair dressing, tooth paste, soaps in various forms such as synthetic,  detergent, shampoos, shaving products, cleaners, washing and scouring products and other toilet preparations.
6.  Manufacture of turpentine, synthetic resins, plastic materials and synthetic fibres like nylons, teryelene except     glass.
7. Manufacture of chemical products not elsewhere classified (including photo-chemicals, sensitised films and        papers).

The A.S.I, statistics for the chemicals and chemical products industry and its seven various sectors for the survey periods of 1973-74 and 1975-77 which are given in Table No. 10 are self-evident and need no particular comments. It may be clarified that the statistics for the survey periods are annual averages within the periods.

It may be very interesting to analyse the principal characteristics of the chemicals and chemical products industry in Bombay on the basis of the Annual Survey of Industries of 1975-77.

The chemicals and chemical products industry in Bombay comprised 454 registered factories which formed 49.02 per cent of those in Maharashtra in 1975-77 survey period. They provided employment to 53,479 persons which constituted 51.24 per cent of the employment in the industry in State. The invested capital in the factories in Bombay was to the tune of Rs. 4,09,17 lakhs or 47.20 per cent of that in Maharashtra. It is noteworthy that the capital investment in this industry in Bombay was about 135 per cent of that in the cotton textile industry, and was very much higher than that in any of the seven major sectors of industry in Bombay. This brings home the fact that it is a highly capital intensive industry requiring very sophisticated machinery.

What is true as regards capital investment is also true about the output and value added on manufacture in this industry. The output of the Bombay industry was computed at Rs. 8,60,37 lakhs or 53.25 per cent of that in the State. The value of output of this industry was higher than that of any other major sector of industry in the city. The value of output was about 125 per cent of that of the cotton textile industry; about 200 per cent of the rubber, plastic, petroleum and coal products industry; about 400 per cent of the basic metal and alloys industry; about 400 per cent of the metal products industry; about 375per cent of the machinery and machine tools industry; about 312 per cent of the electrical machinery, apparatus and appliances industry and about 500 per cent of the transport equipment industry in Bombay.

The value added on manufacture in this industry was computed at Rs. 2,02,76 lakhs or 53.32 per cent of that in Maharashtra. It was higher by Rs. 10,76 lakhs than that in the cotton textile industry. As compared

TABLE No. 10

CHEMICALS AND CHEMICAL PRODUCTS (EXCEPT PRODUCTS OF PETROLEUM AND COAL), GREATER BOMBAY

Item Chemicals and Chemical products (except products   of petroleum and coal) Basic industrial organic and  inorganic chemicals and goods such as acids, alkalies and their salts, gases like acetylene, oxygen, nitrogen, etc Fertilizers and Pesticides Paints, Varnishes and Lacquers
1973-74 1975-77 1973-74 1975-77
1975-77 1973-74 1975-77

1

No of  estimated factories     454 44 48 44 19 65 66

2

Fixed capital (Rs)  1,91,62,53,000 6,51,25,000 9,46,09,000 32,52,77,600 76,06,32,000 4,79,31,100 5,29,77,000

3

Working capital (Rs) 1,84,72,66,000 5,59,40,300 10,09,94,000 10,14,66,300 28,50,35,000 10,52,20,000 11,59,50,000

4

Capital Investment (Rs) 4,09,17,33,000 11,68,46,100 19,06,09,000 49,07,17,600 1,05,76,44,000 18,02,04,800 20,29,77,000

5

Outstanding  Loans (Rs) 1,61,86,52,000 5,92,63,200 7,76,76,000 10,69,32,400 17,81,62,000 10,95,04,600 11,02,21,000

6

Man-days worked 1,63,24,323 NA 13,69,082 NA 10,62,653 NA 14,44,556

7

All workers 33,615 2,652 2,648 2,272 1,733 3,517 2,870

8

All employees 55,479 4,191 4,172 3,363 3,102 5,670 4,750

9

Wages to workers (Rs) 32,56,74,000 1,40,86,600 2,23,38,000 1,12,80,100 1,57,93,000 1,76,54,000 4,67,62,000

10

Total   emoluments (Rs) 74,84,17,000 3,00,57,800 5,45,64,000 2,43,98,200 3,98,47,000 4,64,13,500 11,74,64,000

11

Fuel consumed (Rs) 39,91,14,000 2,43,14,300 6,02,59,000 4,74,08,000 12,19,24,000 53,95,700 1,04,13,000
12. Material   consumed (Rs.). 4,68,74,75,000 13,24,60,100 25,61,52,000 40,95,33,200 53,39,49,000 36,64,54,900  ' 43,85,08,000
13. Other inputs (Rs.)  1,30,82,16,000 N.A. 3,40,57,000 N.A. 9,29,62,000 N.A. 15,68,99,000
14. Total inputs (Rs.)   6,39,48,05,003 16,85,53,800 35,04,69,000 48,37,11,700 74,88,35,000 38,79,35,300 60,58,20,000
15. Plant andmachinery (Rs.). 4,31,19,71,000 11,49,40,500 2,34,70,62,000 1,62,89,300 57,93,17,000 6,44,45,400 5,80,58,000
16. Value of products (Rs.) 7,59,93,43,033 25,44,74,700 50,80,93,000 65,51,11,200 90,22,91,000 48,18,92,700 61,03,13,000
17. Value of other output (Rs.). 1,00,43,11,000 N.A. 1,65,73,000 N.A. 4,40,11,000 N.A. 13,76,83,000
18. Total output (Rs.) 8,60,36,51,000 27,15,03,100 52,46,66,000 66,42,26,900 94,63,02,000 48,62,42,700 64,79,96,000
19. Depreciation (Rs.)  18,12,92,000 89,56,800 2,20,47,000 7,56,98,200 3,15,29,000 66,35,900 79,61,000
20. Value added on manufacture (Rs.). 2,02,75,55,000 9,39,92,600 15,21,50,000 10,48,17,000 16,59,38,000 9,16,71,500 13,42,14,000
21. Factory payments (Rs.) 22,82,05,000 N.A. 1,17,91,000 N.A. 2,36,03,000 N.A. 1,91,83,000

22.

Net income (Rs.)

1,79,93,50,000 N.A.   14,03,58,000 N.A. 14,23,35,000 N.A. 11,50,30,000
                 

TABLE NO.10 - contd.

Item Manufacture of Drugs and Medicines Manufacture of perfumes,cosmetics,lotions,hair dressing,tooth paste, soaps in any form, synthetic detergent, shampoos, shaving products and other toliet preparations Manufacture of turpentine,synthetic resins, plastic materials and synthetic fibers like nylns, teryelene except glass Manufacture of Chemical produce not elsewhere to classified (including pho chemicals sensitiesed films & papers)
1973-74 1975-77 1973-74 1975-77
1973-74 1973-74 1975-77 1973-74

1

No of  estimated factories   129 162 41 40 129 229 103 84

2

Fixed capital (Rs)  31,39,28,100 38,25,90,000 20,00,68,100 28,54,41,000 29,49,90,200 25,41,89,000 6,81,98,100 7,43,49,000

3

Working capital (Rs) 53,37,07,800 61,14,72,00 28,40,19,500 30,53,31,000 38,16,35,200 26,77,95,000 10,96,56,500 15,52,22,000

4

Capital Investment (Rs) 87,45,70,300 1,06,84,13,00 53,82,72,900 82,54,41,000 56,02,73,000 50,84,65,000 16,26,32,500 19,91,60,000

5

Outstanding  Loans (Rs) 29,87,58,300 43,37,84,000 20,42,19,100 56,29,95,000 16,53,17,500 9,72,16,000 12,88,50,400 13,45,09,000

6

Man-days worked N.A 68,68,686 NA 26,97,609 NA 14,84,371 NA 11,98,882

7

All workers 15,045 14,204 6,373 6,242 4,992 2,847 3,012 2,570

8

All employees 21,013 24,380 8,293 8,112 6,826 4,304 4,380 4,057

9

Wages to workers (Rs) 10,43,06,900 13,31,46,000 5,71,94,700 6,03,16,000 2,64,49,100 2,72,03,000 1,30,73,900 1,65,71,000

10

Total   emoluments (Rs) 21,21,73,300 32,05,81,000 10,00,18,400 11,14,38,000 5,78,66,100 5,95,87,000 2,83,73,100 4,00,32,000

11

Fuel consumed (Rs) 2,16,44,700 4,40,34,000 2,44,14,200 6,38,34,000 5,18,63,000 8,01,05,000 60,73,500 1,27,84,000
12. Material   consumed (Rs.). 94,48,97,100 1,29,03,59,000 1,34,74,14,000 55,24,00,300 45,22,24,000 19,81,04,900 32,13,72,000 32,13,72,000
13. Other inputs (Rs.)  N.A 36,50,78,00 N.A. 22,98,15,00 N.A. 8,85,237,000 N.A. 23,17,19,000
14. Total inputs (Rs.)   1,07,61,06,900 1,69,94,71,000 1,19,11,50,200 1,64,10,63,000 68,63,49,500 62,08,55,000 48,87,58,500 56,58,75,000
15. Plant andmachinery (Rs.). 34,75,90,100 41,07,07,000 22,91,09,200 28,41,88,000 1,80,98,98,500 53,74,23,000 6,23,40,400 8,34,82,000
16. Value of products (Rs.) 1,59,22,63,400 2,23,07,85,000 1,42,07,06,900 2,06,04,86,000 1,05,29,17,800 77,37,89,000 55,77,80,300 46,58,68,000
17. Value of other output (Rs.). N.A 26,14,24,000 N.A. 12,33,96,00 N.A. 5,03,22,000 N.A. 23,92,08,000
18. Total output (Rs.) 1,63,60,11,000 2,49,22,10,000 1,43,98,60,100 2,18,38,82,000 1,07,76,83,400 82,41,11,000 59,01,30,300 70,50,76,000
19. Depreciation (Rs.)  3,74,24,800 4,26,31,000 1,82,17,900 2,30,52,000 4,91,42,300 4,44,69,000 69,03,800 83,96,000
20. Value added on manufacture (Rs.). 52,24,79,300 75,01,08,000 23,04,92,000 51,97,68,000 34,21,91,600 15,87,87,000 9,44,68,000 13,08,06,000
21. Factory payments (Rs.) N.A 8,68,91,000 N.A. 4,47,91,000 N.A. 2,43,82,000 N.A. 1,60,59,000

22.

Net income (Rs.)

N.A 66,32,17,000 N.A.   47,49,77,000 N.A. 13,44,05,000 N.A. 11,47,46,000

 

to the six other major sectors of industries, the value added in this industry was approximately three to five times.

It can therefore be deduced that although the cotton textile industry is the largest industry by virtue of the higher employment provided by it, the chemicals and chemical products industry is the largest in Bombay as regards number of registered factories, invested capital, value of output and value added on manufacture. It is thus the most important sector of manufacturing activity.

It is borne out by the reports of many companies that the rate of returns on capital in this industry are very high, and that it is a prosperous avenue of producion. It may be interesting to give an account of the various sectors of the industry, separately. It is attempted to furnish the history of growth of each sector, products, importance in the industrial economy, problems of growth and an account of a few large scale manu­facturing companies, the information for which is readily available. It is clarified that all the principal manufacturers are not mentioned simply because of constraints of information about them. The account is also by no means exhaustive. (The names of units for which information is readily available are given)

The chemicals and chemical products industry can broadly be classified into two classes, namely, heavy chemicals and fine chemicals. Among heavy chemicals, sulphuric acid and the chemicals based on it constitute an important group from the industrial point of view. Another group is composed of alkalies, such as various forms of soda and the compounds based on it. It is attempted below to give an account of the growth of the various sectors of the chemical industry in Bombay vis-a-vis the growth of the industry in India. An attempt is also made to trace the history of the various industry sectors in Bombay. As far as possible the names of the pioneering units are given. (Ibid)

SULPHURIC ACID

The production of sulphuric acid is usually regarded as a barometer of industrial progress. This was the first branch of the heavy chemical industry in Bombay. It is a basic heavy chemical of great industrial and economic importance. Its economic significance lies in the fact that large quantities of sulphuric acid are essential in the manufacturing of important products such as fertilizers, various acids, explosives, dyestuffs, artificial silk, petroleum refining, rayon, staple fibres and numerous industrial operations. It is therefore a sine qua non for the growth of industrialisation.

The history of the sulphuric acid industry in India can be traced to the year 1853 when a plant was established in Bengal. The history of the industry in Bombay city commences with the incorporation of the Eastern Chemical Company, Bombay, in 1913, just on the eve of the First World War. The industry passed through an era of difficulties in the inter-war period, particularly due to shortage of sulphur. The industry grew rapidly during and after the Second World War. The war efforts of the Government and growing industrialisation provided the stimulus. It expanded further at the end of the First Five-Year Plan. Production was handicapped to some extent due to non-availability of sulphur which is entirely imported. The expansion of fertilizers and rayon industries during the first two plans made it imperative to take measures for expansion of this industry. The Fertilizer Corporation of India, Trombay (now known as Rashtriya Chemicals and Fertilizers) was granted an additional capacity for production of sulphuric acid at Bombay during the Third Plan. A unit in the private sector in Bombay was licensed for fabrication of sulphuric acid plants by the Government of India during the Third Plan (Handbook of Commercial Information, 1963, Department of Commercial Intelligence and Statistics, Government of India.) The Fertilizer Corporation of India is now one of the important manufacturers of sulphuric acid. The demand from rayon units in the vicinity of Bombay is required to be met from the Bombay units as also outside manufacturers.

CAUSTIC SODA

Caustic soda constitutes an essential raw material in the manufacturing of soap, rayon, paper, cotton textiles, rubber and vegetable oils. The caustic soda industry is comparatively of recent origin. It originated in India at Mettur in Tamilnadu State in 1941. The pioneer in this industry in Bombay was the Calico Mills Chemical Division which was established during the Second Five-Year Plan. At the time of its establishment, this firm was one of eight units in the country which produced caustic soda for sale.

The demand for this industry's products grew very high during the Third Plan period. In order to meet the growing demand, additional capacities were granted during the Third Plan. The protective duties in force upto May 1951 were withdrawn by Government. (Ibid.)

CALCIUM CARBIDE

Calcium Carbide is another important chemical of industrial significance. The Calico Mills Chemical Division, Trombay was a pioneering enterprise in the production of Calcium Carbide in Bombay as of caustic soda. The unit started production in the first quarter of 1961 with an annual capacity of 6,705 tonnes of calcium carbide.

The principal raw materials for production of calcium carbide are lime-stone and coke. Though these materials are amply available, their quality is much below the mark in India. This adversely affects the quantity of production. Recently however this deficiency is removed by using petroleum coke which is available in the requisite quantity from the petroleum refineries at Trombay. The availability of petroleum coke at Bombay has brightened the prospects of the industry in Bombay.

HYDROCHLORIC ACID AND NITRIC ACID

Next to sulphuric acid, hydrochloric acid and nitric acid are considered the most useful for industrial purposes. In the initial stages of develop­ment of the modern chemical industry in India, these acids were manufactured by the producers of sulphuric acid. The dependence on sulphuric acid in the standard process and the limited supply of sulphuric acid in comparison to demand were a great constraint in the manufacture of hydrochloric and nitric acids. The problem of chlorine utilisation in alkali manufacture was another handicap. These handicaps led to the gradual adoption of the synthetic method of manufacture of hydrochloric acid. The consumption of this acid rose with its increasing use as a substitute for sulphuric acid in the fertilizer and other chemical industries. The Fertilizer Corporation of India, Trombay, plant was included in the Third Plan for the manufacture of nitric acid and nitro products. This plant is now a large producer in this field in Bombay.

PHOSPHORIC ACID

There was absolutely no production of phosphoric acid in India, prior to the Second World War and it was wholly imported. The Star Chemicals of Bombay was a pioneering concern in India which undertook production, of phosphoric acid in 1943 under assistance of the Directorate General of Supply, Government of India. The chemical was very essential for the defence forces, but its supply from foreign sources was stopped due to the war. Hence, the importance of the production of the Bombay firm, which was able to meet the requirements of the acid at that time. After the cessation of the war the unit found it difficult to withstand foreign competition, and applied to the Government of India for tariff protection. The Government granted tariff protection to the industry by converting revenue duty into a specific protective duty in April 1947. The protection was however withdrawn in 1949 after review of the economic condition of the industry. (Handbook of Commercial Information, 1963).

BICHROMATES

Sodium and Potassium bichromates are utilised as raw materials in cotton textile dyeing and chrome tanning of. leather. The bichromates manufacturing industry in India originated only during the Second World War, prior to which these chemicals were imported from Western countries.

The war gave a great impetus to this industry. After the war, however, the demand for bichromates declined, and the industry was faced with the problem of surplus production capacity. The Government of India helped survival of the industry by granting tariff protection in December 1946 which was continued for long and was subsequently withdrawn from January, 1959.

In 1961, there were three units in Bombay manufacturing bichromates, namely, Hindustan Chemical Works, Golden Chemical Works and Pioneer Cbromate Works. These units were the pioneers in the field in Bombay. (Ibid).

HYDROGEN PEROXIDE

Besides the pharmaceutical industry, hydrogen peroxide forms an important auxiliary chemical in the modern textile industry as a bleaching agent and oxidising agent for chemical reactions. It was entirely imported upto as late as 1955-56. The National Peroxide Limited, Bombay, incorpo­rated in 1953, was the first firm to manufacture this chemical in India. It started production for the first time in India in 1956 with technical and financial collaboration with a British firm. The annual production capacity of the plant was 720 tonnes at the time of its inception, which was expanded to 3,046 tonnes per annum at the end of 1961. (Ibid). The same concern started a new plant for production of hydrogen peroxide by another process during the Third Plan.

MAGNESIUM CARBORATE

Magnesium carborate production is of very recent origin in India. Although the pioneer in the industry is not known, one firm in Bom­bay was licensed for the manufacture of magnesium carborate with a production capacity of 6,000 tonnes per year during the Third Plan. (Ibid).

BUTYL ACETATE

This chemical is largely used as a solvent for natural gums and synthetic resins. The demand for it was met entirely from imports. The Union Carbide India Limited, a celebrated petro-chemicals manufacturing concern in Bombay, established for the first time in 1961, a unit in Bombay with an installed production capacity of 1,256 tonnes of butyl acetate. The unit produced 252 tonnes of the product in 1961 initially. (Ibid).

ETHYL ACETATE

This is an important acid from the industrial point of view, and it is used mainly as a solvent in paints,  varnishes and lacquer industries. The Excel Industries, Jogeshwari in Bombay (1941)  undertook  its production during the Second Five-Year Plan. In 1961, the Union Carbide India also emerged in the field of ethyl acetate in Bombay. (Ibid). The growth of the automobile industry and other industry sectors requiring paints and lacquers gave an impetus to this industry during the last about 20 years.

HYDROQUINONE

In India, this chemical is mainly used in the film industry and in photography, although it has diverse uses in the developed countries. Formerly it was entirely imported from foreign countries. Commercial production of hydroquinone was started in the country for the first time in Bombay in 1949. The annual production capacity of the sole unit, namely, Kesar Sugar Works, Bombay, was 15 tonnes in 1950, while its actual production was 3.4 tonnes in the same year. Realising the difficulties of the industry the Government of India granted tariff protection to this industry in 1951 which was discontinued from January I960. (Ibid).

STEARIC ACID AND OLEIC ACID

These fatty acids have attained considerable commercial importance because of their use as raw material in several industries, such as, rubber and rubber products, cotton textiles, cosmetics and soaps, grease, lubricants, paints and automobiles. Although the name of the pioneering concern in this industry is not known, there were three firms in Bombay which manu­factured these acids on a small-scale during period of the Second World War. In order to encourage development of the industry the Govern­ment of India granted it tariff protection in 1948 which was later on withdrawn from 1963. (Ibid). It appears that one of the units went out of production in about 1949-50 for which no information is available. Later a large concern in Bombay mainly engaged in the manufacturing of toilet goods and vegetable oils, also undertook the production of stearic acid and oleic acid on a small-scale in the mid-fifties.

BUTYL ALCOHOL

Butyl Alcohol is an important petrochemical belonging to the organic intermediates group. It is used in the manufacture of esters, and as a solvent for resins, lacquers and varnishes. The production of butyl alcohol was undertaken for the first time in India by the Union Carbide India in Bombay in 1961. The annual installed capacity of this pioneering enterprise was 684 tonnes, while the actual output was 152 tonnes of butyl alcohol in 1961. (Ibid). With this modest beginning the production by the concern expanded considerably in subsequent years.

METHYL ALCOHOL

Methyl alcohol also known as methanol is another important petro­chemical belonging to the organic intermediates group. From the industrial and commercial point of view this is a very important petrochemical which is essential in the manufacturing of acrylic resins, terylene and other chloromethanes, as well as many pharmaceutical preparations. It is also used in substantial quantity as an auxiliary in jet and turbine aircraft fuel. It has its utility in industry as a solvent, and as a denaturant for rectified spirit. The Petrochemical Committee of the Government of India in its report of 1963 considered that in view of the prospective demand for this chemical it would be desirable to set up two new units, each with a production capacity of 60 tonnes per day, located near the main consumption centres of Bombay and Calcutta. (Ibid).

PHTHALIC ANYHYDRADE

This is also an important petrochemical belonging to the organic intermediates group. A rapid rise in demand for this industrial chemical is anticipated in view of the accelerated development of plastics, dyestuffs, and allied resin industries in and around Bombay. The industry is of very recent origin in India, and there was not a single unit in the country, prior to 1961.

Besides a unit in Bombay, there was only one other unit in the country viz., the Durgapur Steel Plani in the public sector, licensed for the production of phthalic anyhydrade. This fact establishes the pioneering nature of the unit in Bombay.

Phthalic plasticisers were produced for the first time in the country in 1961 by the Indo-Nippon Chemicals Limited, Bombay. The annual installed capacity of this unit was 900 tonnes, while its actual production was 139 in 1961, the year of its inception. (Ibid).

POWER ALCOHOL AND INDUSTRIAL ALCOHOL

In recent years, substantial development of the alcohol based industries has taken place throughout the world. A chemical, known as industrial alcohol, is now widely used as a basic material for the manufacture of diverse organic chemical products, particularly drugs and pharmaceuticals, dyestuffs, high polymers, solvents, insecticides and synthetic rubber.

Modern distilleries for potable alcohol were established in the country in the last century. The industry developed more rapidly in the United Provinces, present U.P. and Bihar.

Production of industrial and power alcohols in India commenced after the indigenous sugar industry came into being in 1932. Starting primarily as a rectified spirit industry, it made steady progress when alcohol found wide ranging applications. Acute scarcity of petrol during the Second World War, due to the requirements of the defence services and curtailment from producer countries on account of war, stimulated the use of alcohol as a motor fuel, even without the admixture with petrol. This has always been a scarce commodity in relation to demand for it. And hence, the stimulus for its growth in the post-war period.

According to the Report of the Committee on Industrial and Power Alcohol appointed by the Government of India (1956), the manufacturing of polyethylene based on alcohol had already been taken up by two firms, one in Bombay city and another in Calcutta. (Ibid).

Now more than 60 per cent of the total production of alcohol in India is used for industrial purposes. It is an important industrial raw material, chiefly because the country does not have enough petroleum crude. More attention has come to be focussed on it in recent days as a probable substitute for motor gas. It has the advantage of easy-obtainability through a simple and low energy technology, viz. fermentation. Ethyl alcohol is readily convertible into ethylene and acetaldehyde both of which are important starting points for synthetic chemicals. Utilisation of alcohol therefore enjoys considerable preference.

The Polychem Ltd., with factories at Goregaon and Chembur in Bombay and at Nira in Pune, is a large producer of alcohols, potable liquors, polystron, styrene and monomer. The sales of this concern were of the tune of Rs. 19.82 crores in 1978-79. (A State-wise Picture of Large Scale Industrial Activity, 1981.)

ORGANIC CHEMICALS

Much of the development of the organic chemical industry has come about in the last 50 years. "The growth has been particularly rapid since 1960, catalysed by the establishment of the steel plants in the country. Production of benzene, butyl acetate, diethylene glycol, ethylene, mono-ethylene glycol and polyethylene glycol registered over hundred per cent increases in the period 1970-78. The industry also expanded into new avenues and production of D. M. T., pare-xylene, ortho-xylene, vinyl chloride and caprolactum, started in the last decade and has since gained momentum." (Kothari's Economic and Industrial Guide,1980-81.)

The Hoechst, Dyes and Chemicals, incorporated in 1958 as a private limited company and later converted into a public limited company in 1961, has been a large producer of polyninyl acetate dispersions, dyestuffs and organic and inorganic chemicals. Its Mulund plant had a turnover of Rs. 51.88 crores in 1980.

CRUDE COAL-TAR

Coal carbonisation was introduced in India about 125 years ago by the two gas companies in Bombay and Calcutta for supply of town gas. The Bombay Gas Company which went into production in 1866 started coal carbonisation. The Bombay gas works is one of the few principal sources of coal-tar in India. The Bombay Gas Company is said, by the Manufacturers' Directory (1962), to be the only producer of cresols in India. Cresol is a tar acid which has an industrial application, which is required to be imported from abroad because of its very small production in Bombay.

PHENOL

This petrochemical constitutes an important raw material in the pharmaceutical, dyestuffs, explosives, and insecticide manufacturing industries. The synthetic resin industry is the main consumer of phenol. Precise information about production of phenol is not available. According to the book Chemical Industrial Undertakings Licensed (1962), issued by the Indian Chemical Manufacturers Association, Calcutta, two firms in Bombay city were granted licences towards the end of the Second Plan for the production of phenol.

PETROCHEMICALS INDUSTRY

The petrochemicals industry has emerged as the principal supplier of chemicals of vital economic significance which have a bright future in enrichment of the country. Although petrochemicals began to be manufactured in India in 1961, the petrochemicals industry emerged in the country as an important sector after the mid-sixties only. The first integrated petrochemical complex started functioning at Trombay in Bombay in 1966 under management of the Union Carbide India Ltd., a private sector enterprise. This pioneering concern has established a Naphtha plant at Trombay with an annual consumption of 60 thousand tonnes of Naphtha. It also manufactures carbons, midget electrodes, industrial chemicals, dry cells and batteries for radio and telecommuni­cation purposes. The lead given by the Union Carbide was followed by a giant plant by the National Organic Chemical Industries Ltd. in the Thane-Belapur Complex, which was started in January, 1968. This concern with its office in Bombay and the plant on the outskirts of the city has an average annual intake of 225 thousand tonnes of Naphtha. It is one of the biggest petrochemicals manufacturers. The Indian Petrochemical Corporation Limited at Baroda, by far the biggest petrochemicals complex, was another celebrated enterprise in the field of petrochemicals. The available capacities for what is called, the building blocks in these three units by 1977 are given below:—

(Thousand MTPA)

Item

IPCL

NOCIL

NCIL

Total

1.

Naphtha Input

450

225

80

755

2.

Ethylene

130

60

22

212

3.

Propylene

78

35

6

119

4.

Butadiene

22

7

 

29

5.

Benzene

23

14

6

43

Petrochemical based products have truly redeemed the scarcity of traditional raw materials required for food, clothing, medicines, house­hold utilities and shelter for man. No other industry has opened up newer vistas for the welfare and prosperity of the people as the petrochemicals industry in view of the diverse products, and it is indeed, contributing a great deal to the growth of industrial potential and national wealth. This industry occupies a vital position in the industrial development of the country in view of the employment potential and the contribution to the gross national product. It has opened up large opportunities for employment. The sectors that benefit most from the indirect generation of employment by the petrochemical industries are textiles, plastics, other consumer good industries, pharmaceuticals, transport, engineering, rubber products, agriculture, etc.

The traditional measure for evaluating the growth of the petrochemicals industry in any country, is the rate of growth of ethylene production. The compound annual rate of growth of ethylene production in India between 1970 and 1978 had been around 8.2 per cent against the 5 per cent rate recorded by the manufacturing sector as a whole. (Petrochemicals from Bombay High, Maharashtra Economic Development Council.). The rate of growth of petrochemicals depends largely upon the growth of capacities and production in the industries which utilise petrochemicals as feed stocks. The major determinants for market demand are plastic pipes, plastics for agricultural applications, plastic packaging, PVC sheets, plastic cables, plastic footwear, thermosetting polymers, expanded polystyrene, synthetic rubber, rubber chemicals, synthetic fibres, drugs and pharma­ceuticals, dyestuffs, paints, synthetic detergents and pesticides. In view of the fact that the petrochemical industry was established only in the late sixties, the growth of the final products industries was limited. Secondly according to some experts, the applications of petrochemicals have mainly centred around the urban areas because of paucity and high prices of petrochemicals. This is especially true in the case of synthetic fibres and yarn. The industry is also heavily taxed. Considering all these limitations the growth rate recorded by the industry in the seventies is quite significant. (Ibid.)

As a result of this growth and the versatility of petrochemicals, the demand for petrochemicals has been steadily increasing despite limitations. In fact, the demand outstripped production by 1977. (Ibid.)

The ultimate importance of petrochemicals and their derivatives to the economy lies in their backward and forward linkages, the additional investment they generate and the consumer needs they help to satisfy. It is, therefore, instructive to know their end uses. Styrene-butadiene rubber is used in the manufacture of tyres and tubes, footwear, moulded and extruded goods, etc. Polystyrene is used in packaging consumer durables, household and stationery articles. Expanded polystyrene is used in industrial insulation, cold storage, construction and defence sectors. LDPE is used in agriculture, mouldings, wires, cables and pipes manufacture. PVC is used to manufacture pipes, fittings, footwear, cables and sheets. Ethylene oxide is used in the manufacture of ethylene glycol, emulsifiers, rubber chemicals and pharmaceuticals. Isopropyl alcohol is used in pharmaceuticals, pesticides, refining of special oils and chemical auxiliaries. Acetone is used in pharmaceuticals, cellulose acetate yarn and fibre, rubber chemicals, paints, thinners, resins, explo­sives and chemical auxiliaries. Polypropylene finds its use in manufacture of consumer and industrial articles, staple fibre, pipes. Acrylonirrile is used in acrylic fibre, nitrile rubber. Phenol is used in resins, pharma­ceuticals, wire enamels, pesticides and synthetic tanning agents. Phthalic anhydride is used in plasticizers, dyestuffs and resins.

Petrochemicals industries are thus intimately connected with plastics processing and ancillary industries, synthetic fibre industry, synthetic rubber industry, rubber chemicals, pesticides, drugs and pharmaceuticals, dyestuffs, paints and synthetic detergents industries. Besides, the setting up of petrochemicals plants and down-stream units generates investment in capital goods and intermediate goods industries connected with design and engineering, equipment, construction, etc. This versatile nature of the petrochemicals industry provided a powerful stimulus behind its rapid growth.

The raw materials, known as feed stocks, in this industry comprise Ethane, Propane, Naphtha and Gas Oil. These can be obtained from petroleum, coal, alcohol and other hydro-carbon resources. It may be noted that petrochemicals can be produced even from non-petroleum sources. In India the raw material used is Naphtha which is obtained after refining crude petroleum. As a result of repeated price hikes of crude oil by the OPEC countries, however, the Government of India raised the price of Naphtha which has resulted into high costs of production of petrochemicals. Naphtha is also used as a major feedstock for fertilizer industry which is a priority industry. Hence, the supply of Naphtha to the petrochemicals industry is restricted. It is in this context that the fortunate discovery of oil and associated gas at Bombay High and oil and free gas at Bassein oil fields, assume tremendous economic signi­ficance. The petrochemicals industry is, therefore, very anxious to augment its supplies of feedstocks from this alternative source.

The new situation emerging from the discovery of domestic crude oil and natural gas in the Bombay High and Bassein fields enables an almost autonomous development of petrochemicals, with a little competition between the petrochemical industry and other industries in the supply of suitable hydrocarbons. There is not only an abundant availability of a wide variety of hydrocarbon raw materials their are well suited for a much more diversified petrochemical industry, but also a wide variety of natural products that integrate with petrochemicals to yield a compre­hensive range of chemicals that can profoundly affect almost every sector of the economy.

Presently, Bombay High is producing crude oil at the rate of 6 million tonnes per year and is due to reach the peak rates of 12 million tonnes after 1983. Drilling is continuing and hopes are high also for the Bassein field and in the Tapi structures. It is estimated that a daily production of over 20 million cubic metres of gas per day is possible for nearly 30 years. (For details see Petroleum Industry.) Based on these discoveries plans are being made to set up two gas crackers in the vicinity of Bombay and in Gujarat.

The crude oil reserves at Bombay High are estimated to be of the order of over 750 million tonnes spread over an area of about 1,500 sq. km. From the oil fields Associated gas is also available which is at present being consumed by the Fertilizer Plant at Trombay and by the Tata Thermal Power Station. It has opened up opportunities to have petroleum feedstocks in sufficient quantity to support a large-scale economic and viable petrochemicals industry, utilising optimum technology and product mix.

Though Naphtha is a good feedstock for petrochemicals, its rising cost, supply constraints and its utilisation for the fertilizer manufacturing industry have inflicted constraints on its utilisation as an economic feedstock. All hopes for future petrochemical projects, therefore, centre on the use of Associated  gas and Natural gas from Bombay High and Bassein fields. The gas has the following potential uses in order of priorities. (D.N Daruwala,"Petrochemicals- Opportunities and Challenges" (articles).

1. Feedstock for fertilizers.
2. Feedstock for petrochemicals.
3. Production of LPG domestic fuel.
4. Fuel for power generation.

Of the above uses, Government has already completed the project for recovering the butane-propane fraction for LPG production at Uran in the environs of Bombay. The methane fraction of the gas is being piped to Bombay for fertilizer manufacture and to the giant power generation project of the Tatas at Trombay. The ethane and higher fractions are not being utilised as yet. It has been suggested by many committees of experts that optimal utilisation of the Associated gas should be planned to lead to the highest economic benefit. If the gas is utilised for the production of petrochemicals, the value additions would become very high and would have a high multiplier effect on other downstream activities.

The Government of India has formulated plans for utilisation of the gas for the production of fertilizers, LPG and petrochemicals. The Petroleum Ministry has planned to construct 11 fertilizer plants of which two would be in Maharashtra, three in Gujarat, and two each in Madhya Pradesh, Rajasthan and U.P. All the ten plants will use the Bombay High Gas transported through pipelines. The LPG plant using some four million cubic metre of Associated Gas from Bombay High is being incorporated at Uran. If India can set up petrochemical plants based on gas, she would save considerable foreign exchange now spent on imports of petrochemicals. The Bombay High crude is highly rich in aromatics and the gas is ideal for production of petrochemicals. A as cracker unit is proposed to be established in the environs of Bombay. This unit is proposed to crack about 5 lakh tonnes of ethane-propane mixture to produce 3 lakh tonnes of ethylene and 40 thousand tonnes of propylene per year. (D. N. Daruwala, op. cit.)

As a result of the opportunities opened up by the Bombay High, the private sector petrochemicals manufacturers in Maharashtra (particularly in Bombay) have applied for expansion of their existing manu­facturing facilities. Since a petrochemicals complex, even if sanctioned by Government, would take at least 6 years for commissioning, during which period the Associated gas waste may continue unabated, they have put up an interim proposal for effective utilisation of this gas till the Usar complex, (The Usar petrochemicals complex is expected to cost about Rs. 900 crores.) near Alibag is commissioned. The State Government has supported the proposal.

The interim proposal envisages a marginal modification of the separation and LPG plant of ONGC at Uran to enable separation of about one lakh tonnes of ethane-propane gas per annum which would be supplied to the existing gas cracker of Union Carbide India Ltd., at Trombay. According to the proposal the Union Carbide Plant can be readily adopted to switch back from cracking one lakh tonnes of Naphtha to cracking one lakh tonnes of ethane-propane fraction from the Asso­ciated gas. This can be done at an estimated cost of Rs. 25 crores. This cracker would be in a position to produce about 55 thousand tonnes of ethylene per annum. The ethylene would be supplied to the other existing manufacturers of LDPE and HDPE to enable them increase their existing production capacity. The proposal involves an investment of only Rs. 6 crores by ONGC in the public sector, and the rest of the investment would come from the private sector. This proposal, it is claimed, would not only reduce the period of sub-optimal use of Bombay High Gas, but also would substitute existing imports and generate revenue to the public exchequer to the tune of Rs. 26 crores per annum. The increase in the GNP as a result of implementation of this proposal is estimated around Rs. 80 crores per annum.

The proposal is under consideration of the Government of India. The present plans of the Government are to set up a 4 million cubic metres per day capacity gas fractionation plant at Usar with LPG extraction facilities. (Petrochemicals from Bombay High, Maharashtra Economic Development Council, Bombay.)

ALKALI INDUSTRY

The alkali industry is a basic industry as it provides industrial raw materials for other industries. The growth of this industry in India is of recent origin. Caustic soda manufacturing which is an adjunct of the alkali industry had its first footing in India in 1941. The industry is essentially a product of the Second World War. There were 32 caustic soda plants in the country in 1974 of which one was located in Bombay. Till 1967 indigenous production of caustic soda was not sufficient to cater fully to the domestic demand, and imports had to be resorted. Since 1970 however there had been practically no imports as indigenous production was sufficient to meet the internal demand.

Besides caustic soda, the alkali industrial unit in Bombay, manufactures chlorine, caustic acid, hydrochloric acid and other chemicals. Since all these chemicals are industrial raw materials, the demand for them is naturally dependent upon the progress in the consuming sectors. The industry presents serious problems in regard to location, choice of process, fuel and raw material supplies. It is a capital intensive industry.

Till recently the industry had to import a substantial part of the machinery and equipment. The extent of dependence on imports has however diminished progressively with the establishment of indigenous fabrication facilities, and at present only about 20 per cent of the equip­ment is required to be imported. Salt, mercury, graphite anodes, etc., are the main raw materials required for the industry.

The installed capacity of production of caustic soda in Bombay was 28,950 tonnes in December 1973, while the actual production was 14,100 tonnes in 1971: 26,900 in 1972 and 27,000 in 1973. The major handicaps faced by the industry are the increase in power tariffs and shortage of power which result in decrease in production. The Alkali Manufacturers' Association of India, formed in 1960, helps the firms in all matters connected with the development of the Industry as well as its day-to-day problems.

DYESTUFF INDUSTRY

Dyestuffs are essential raw materials for cotton, silk, art silk and woollen industries. A well established dyestuff industry is a pre-requisite for the development of chemical industries and textiles. It acts as an important link in the chain of other essential chemical industries such as, inorganic chemical industry and coal-tar industry on the one hand, and the fine chemical and pharmaceutical industry, explosives, synthetic resins, plastics, etc., on the other. This industry can be diverted to the production of some defence materials in times of war.

The production of dyestuffs and their intermediaries in India is mainly a development of the post-independence period. Earlier these products were almost entirely imported from the U.K., Germany, Switzerland and the U.S.A. The foundation of the organised Indian dyestuff industry was laid in 1940 by the establishment of a small-scale plant by M/s. Associated Research Laboratory at Bhatghar near Pune. The British Government of India appointed a committee to prepare a plan for development of dyestuff industry in India. It was not however until 1952 that the production of dyestuffs started on a large scale when M/s. Atul Products Ltd. commissioned their plant at Atul for production of dyes and sulphur black in collaboration with American Cynamid Company. This was followed by the establishment of several large, medium and small-scale concerns, some of them with foreign collaboration for the manufacture of a variety of dyestuffs and their intermediaries.

The growth of this industry in India during the last 25 years appears to be spectacular as compared to many other industries during this period. The growth of the Indian industry compares better with that in the other developing countries.

At present most of the dyestuff and intermediate plants are located in Maharashtra and Gujarat. This is attributable to the fact that the necessary basic chemicals, such as acids and alkalis are produced in this area and the major consuming industry, namely, textile is also located in this area. The other buyers of dyestuffs, viz., pharmaceutical and plastic factories are also located in this area.

The prospects of growth of this industry in Bombay city were however not very bright. This is mainly because dyestuff plants cause air and water pollution as they eject very strong effluents and gases. The Government have, therefore, decided to encourage dispersal of this industry from Bombay. The Kalyan industrial complex has however attracted very big dyestuff plants which could be attributed to the availability of infra­structure and nearness to Bombay. The Amar Dye Chem and Indian Dyestuffs Industries are located in this region. The registered offices of these concerns are in Bombay.

The industry was granted tariff protection in 1954 which helped its further development. Indian dyestuffs are now exported to many countries in the world except probably China and East European Countries.

The data based on Annual Survey of Industries are not separately available for dyestuffs industry. The data constraint forbids from analysing the structure of this important industry.

PESTICIDES

Pesticides began to be used on a large scale only after Independence. The first unit for manufacturing BHC was set up in 1952. India is however now one of the two largest producers of pest control chemicals in Asia. A majority of the pesticide manufacturing units are in the small-scale sector which produce formulations, such as, dusting powders, wettable powders and emulsified concentrates. The production of these essential chemicals in the country is much less than the demand, as the consumption has increased considerably. The use of pesticides in the field of agriculture began slowly with the realisation that expansion of production depends to a large extent on the prevention of loss due to pest and disease infesta­tion. It was only during the Second Five Year Plan that the use of pesti­cides was given importance. The propagation of high yielding varieties and hybrid varieties, however, brought new pest problems hitherto of no economic significance. This increased the demand for pesticides. Realising their importance in the country's agricultural economy, the public sector also has taken a considerable interest in development of this industry.

The growth of this industry in India in terms of average production in tonnes was 7 per cent per annum from 1970-71 to 1975-76, while the rate of consumption of pesticides rose by 29 per cent per annum during the same period. (Dr. P. K. Narayanswamy "Pesticides Industry ".)

Many of the raw materials like benzene, chlorine, methyl and ethyl alcohol, methylamine, phosphorous, pentasulphide, etc. are available locally though not in adequate quantities. Further growth of the petro­chemical industry in and around Bombay and Baroda will increase availability of raw materials.

The Excel Industries with its factories at Jogeshwari and Amboli in Bombay and at Roha in Raigad district is a large manufacturing concern. It manufactures a variety of pesticides and fungicides. Another famous name in this industry is the Rallis India with plants at Bombay and Belapur (Thane district) on the outskirts of Bombay. The Muller and Phipps, a foreign collaboration concern, manufactures some kinds of insecticides in its plant at Vile Parle. It is a large-scale manufacturer.

As per the Wealth of India, the Bombay Chemicals Private Ltd., Bombay, had an annual production capacity of 96 thousand gallons of 2 per cent pyrethrum extract, an important pesticide. The Standard Chemicals and Pharmaceuticals Company at Bombay is another producer of insecticides. As per the book Chemical Industrial Undertakings Licensed (1962), a firm in Bombay was licensed to produce sulphuric insecticides with a production capacity of 1016 tonnes, divided equally into colloidal sulphur and wettable sulphur. Further details of the firm are not available.

The pesticides and fungicides manufacturing industry in and around Bombay awaits a good future. The propagation of improved agrarian techniques, intensive methods of cultivation and changing crop pattern with an emphasis on commercial crops are bound to accentuate the demand for these products. In fact the wide propagation of hybrid crops warrants a regular use of pesticides on a large scale. These factors will further strengthen the demand for the products of this industry. The expanding growth of petro-chemicals in and around Bombay will supply the necessary raw materials for this industry on a rising scale at cheaper rates.

FERTILIZERS

Commercial fertilizers are categorised into straight fertilizers and mixed fertilizers. Straight fertilizers are sub-divided broadly into Nitrogen fertilizers, Phosphate fertilizers and Potash fertilizers. The first Indian super-phosphate factory was set up in 1906 in Madras State. In 1924 another super-phosphate factory was set up in Bombay (Handbook of Commercial Information, 1963).The total production and consumption of fertilizers was very meagre according to Western Standards. The conservative peasant who is inherently very slow in adoption of scientific cultivation could hardly be persuaded to utilise fertilizers. Naturally there was no impetus to the growth of the industry. The apathetic attitude of the British Indian Government also did not provide any encouragement. It was only after Independence that there was a wide realisation of the importance of fertilizers. The progressive Government after Indian Independence provided the necessary impetus to the growth of the industry and for popularising fertilizer use.

The decade ending 1961 had been a period of intensive efforts to plan the production, distribution and utilisation of fertilizers. Expert Committees were appointed by the Government of India, and experts were invited from abroad to advise on the problems of the industry. The fertilizer industry to-day constitutes a major public sector enterprise in India. At present there is an acute shortage of both nitrogenous and phos-phatic fertilizers, and efforts are being made in the public and private sectors to step up their production.

At the commencement of the First Plan (1951-52), there were two principal units manufacturing ammonium sulphate in the country, one of which was located in Mysore and another in Kerala. (Ibid)  Single super­phosphate prepared from imported rock phosphate was the principal source of phosphatic fertilizers in India prior to the First Plan period. Of the 14 plants manufacturing super-phosphate, seven were located in the former Bombay State in 1951. (Handbook of Commercial Information, 1963.)

It was in the Third Five-Year Plan that a giant fertilizer plant was established at Trombay in Bombay which was intended to produce mainly urea and nitrophosphate in addition to ammonium sulphate. The Rashtriya Chemicals and Fertilizers at Trombay, an undertaking of the Government of India, is now one of the few giant projects of its kind in India. It has an installed capacity to produce 99,000 tonnes of urea per annum. It however, exceeded its installed capacity and manu­factured about 103,959 tonnes in a latest year. Its installed capacity as regards production of complex fertilizers is three lakh tonnes, its actual production amounting to about 255,510 tonnes in a latest year. The enterprise has an installed capacity to produce 3.61 lakh tonnes of ANP, the actual production being about 199,558 tonnes. The value of sales amounted to Rs. 95.80 crores in 1978-79 and to Rs.174.10 crores in 1979-80. (A State-wise Picture of Large Scale Industrial Activity, 1981) Formerly known as the Fertilizers Corporation of India, the Rashtriya Chemicals and Fertilizers is ideally situated as regards availability of feedstocks, sources of energy, transport facilities, etc. In recent years it ha.s diversified its production. Besides, fertilizers, it produces a good amount of sulphuric acid, elemental sulphur and many other basic chemicals which are so very essential for other industries. The importance of sulphuric acid lies in the fact that its transport is hazardous, and it is required in bulk in Bombay. Elemental sulphur is not available as a mineral in India.

The discovery and explorations of the Bombay High have illuminated the hopes and aspirations of the Indian nation. The Bombay High enabled the Government to review the entire feedstock policy for fertilizers. The nitrogenous fertilizer plants in the country are based on a variety of feedsotcks, such as, natural gas, Naphtha, fuel oil, coal and coke oven gas. The initial development of nitrogenous capacity in the country was based primarily on indigenous feedstocks like coke, wood, etc. With the availability of surplus Naphtha in the local refineries and discovery of natural gas, production capacity was augmented in the sixties. After discovery of the Bombay High Oil and gas, the Government could review the entire feedstock policy, and formulated guidelines in this respect. Accordingly Naphtha is used sparingly only on considerations of exigencies and economies, while use of fuel oils is being restricted. Primarily gas is to be used as a fertilizer feedstock, as it is most economical. It has been estimated that on the basis of availability of associated gas from Bassein, about 11 fertilizer plants, each with a capacity of 1,350 t.p.d. (tonnes per day), can be established. (Petrochemicals from Bombay High, Maharashtra Economic Development Council, Bombay)

The expansion programmes of the Trombay Fertilizer Plant and the proposed Thai Vaishet Fertilizer Project are sanctioned on the basis of Bombay High and Bassein resources only. (Ibid)

The explorations at Bombay High, thus, promise a very bright future for the expansion of the Trombay Fertilizer Plant and development of the Thai Vaishet Project near Bombay. The original authors of the Trombay Plant, though might not have visualised the promises of the Bombay High, now deserve national compliments.

The Maharashtra Agro Industries Corporation which is a Government undertaking is also engaged in fertilizers production in Bombay besides other centres in Maharashtra.

As per the Annual Survey of Industries in 1975-77 there were 19 registered factories in Bombay engaged in the manufacture of fertilizers and pesticides. They provided employment to 3,102 employees including 1,733 workers. The capital invested in the industry was Rs. 1,05,76.44 lakhs. The value of total inputs of the industry was to the tune of Rs. 74,88.35 lakhs, while the value of total output was Rs. 94,63.02 lakhs. The value of products of the industry stood at Rs. 90,22.91 lakhs, the value added on manufacture being Rs. 16,59.38 lakhs.

The detailed statistics of the fertilizer and pesticides industry, the two sectors being grouped together, are furnished in Table No. 10.

The data enable us to study the structure of this industry in Bombay.

AGRO-INDUSTRIES

Agro-industries are an important sector from the point of growth of the national economy. Besides providing employment, their importance lies in providing a valuable infrastructure for agricultural economy, but for which the latter is bound to stagnate. Though agriculture is the oldest industry in this country, the growth of agro-industries is only of recent origin. They started developing only after Independence. These industries are mainly engaged in manufacture of chemical fertilisers, pesticides, insecticides, fungicides, agricultural implements and a variety of equipments.

The Rallis India Limited manufactures a range of pesticides, solid as well as liquid, and has an installed capacity to manufacture about 28,260 tonnes of pesticides per annum. Unfortunately however this is a declining industry in Bombay. As per a government study, (Growth of Industries in Maharashtra, Directorate of Industries, Maharashtra State) the number of factories in this sector in Bombay declined from 966 in 1961 to 544 in 1976. This meant a decline by 43.7 per cent over a period of about 16 years. The employment in agro-industries also declined from 2,62,957 in 1961 to 2,06,954 in 1976, which meant a decline by 21.3 per cent.

PHARMACEUTICAL INDUSTRY

The pharmaceutical industry is a vital sector of the national economy, and its products and services are an essential input in our programme of health-care. It has a record of achievements unmatched by very few other industries in India. Measured in terms of quantity and quality of growth, the pharmaceutical industry is in the front rank of India's science-based industries. It is today a vertically integrated manufacturing sector producing almost all essential drugs, and meeting the country's requirements of formulations in full and of bulk drugs very substantially. It is pertinent to note that among the developing countries, India has the distinction of having the largest and the most modern pharmaceutical industry. It has now reached a stage which signifies a level of operation comparable to international standards of production, technology, management and quality.

The industry is mainly concentrated in the western region, particularly in Bombay and Baroda. The principal reason for the quicker growth of this industry in this region is that the development of the chemicals and petrochemicals industries took place in the last about twenty years, and hence the basic raw materials became available nearby for the manufacture of medical preparations. The development of petrochemical complexes at Bombay and Baroda has made available basic raw materials required for organic intermediates like ethylene, propylene, Benzene, toluene, xylene etc. Most of the raw materials needed for the production of antibiotics by fermentation processes are available nearby. Synthetic drugs need quite a number of basic organic chemicals which are used in the manufacture of organic intermediates. These are made available by the petrochemical complexes around Bombay and Baroda in a great measure.

Independent India inherited, in August 1947, a pharmaceutical industry which had not come of age; The industry had behind it a chequered history since its establishment in the early years of this century. Alter­nating periods of growth and recession, of advance and setback constituted that history.

But it was also a history which had an enterprising beginning, in that the industry owed its establishment to the vision and efforts of three dedicated persons, Acharya P. C. Ray in Calcutta, and Mr. T. K. Gajjar and Rajmitra B. D. Amin in Western India (Baroda). They struggled against odds in the same way as the pioneers of shipping and steel industries did in the initial stages. In particular, the pioneers of the pharmaceutical industry had to overcome such difficulties as public prejudice towards allopathic medicine, lack of government patronage, foreign competition and non-availability of component raw materials. All the same, the use of chemo-therapeutic agents for the control and treat­ment of diseases was firmly established, thanks to the efforts of organic chemists who discovered drugs like aspirin and barbiturates. Other significant developments at about the same time, such as establishment of the Haffkine Institute and King's Institute in 1904, Central Research Institute in 1905 and Pasteur Institute in 1907, and commencement by British scientists in India of research in tropical diseases like malaria, cholera, smallpox and typhoid, fostered a climate favourable for the growth of the nascent pharmaceutical industry in its first decade of existence.

Fillip given by World Wars : The industry received a fillip during World War I as the local demand for allopathic medicines increased steeply and imports were almost completely cut off. Production of caffein from tea dust and of surgical dressings was established during this period which also witnessed increased manufacture of galenicals. But imports of pharmaceutical products were resumed immediately after the War. Consequently competition sharpened and the infant industry received a setback during the twenties. This adverse situation notwithstanding, the industry undertook, by 1930, the manufacture of biological products like sera and vaccines, anaesthetics like ether and chloroform and coal-tar distillation products like naphthalene and cresol. In 1930, again. manufacture of Tetanus anti-toxin was taken up for the first time; The industry's progress during the thirties, in the face of foreign competition, was slow but steady. By 1939 at was able to meet 13 per cent of the country's medicinal requirements.

The outbreak of World War II in 1939 proved to be a shot in arm for the industry. In 1941, manufacture of an anti-dysenteric drug, Iodochlor/Di-iodohydroxy-quinoline, was taken up for the first time in the country. Manufacture of a number of alkaloids like ephedrine, santonin, strychnine, morphine, emetine, atropine and codeine was undertaken by the industry during this period. At the same time, produc­tion of chemotherapeutic drugs such as arsenicals. anti-leprotic drugs and colloidal preparations of calcium, silver, manganese, iodine, etc. was also established. Besides, manufacture of glandular products like liver extracts, pituitary extracts and adrenaline solutions was com­menced during the war period. The country became virtually self-sufficient in the production of sera and vaccines. By and large, by 1943, the Indian producers were in a position to meet upto 70 per cent of the then medicinal requirements of the country.

The fact nevertheless remained that the industry's activities in the field of fine chemicals and synthetic drugs were mainly confined to processing and manufacture of compounded preparations. They did not extend to the production of such pharmaceuticals starting from the basic chemicals. The industry's development during the war years was thus uneven.

In the immediate post-war years (1945-47), the world-wide shortage of drugs and pharmaceuticals continued. The Indian industry had, there­fore, no difficulty in maintaining its tempo of growth and even in developing export markets for galenicals, alkaloids etc., though the total value of its production, consisting mostly of formulations was only of the order of Rs.10 crores in 1947. But this favourable situation did not last long, for the Indian pharmaceutical industry could not keep pace with the war-time developments leading to the replacement of many familiar drugs by a number of new chemotherapeutic products and antibiotics.

In the immediate post-Independence years from 1948 to 1953, several reputed international companies set up processing facilities in Bombay, Calcutta and parts of Western India. These companies, with their well equipped establishments in India, were able to keep abreast of the new discoveries in medicine and thus to issue new preparations. They had an assured supply of bulk pharmaceuticals from their principals, and they had established markets in India for their products.

Of the 75 large-scale units in the country in 1952, as many as 35 were in the then Bombay State, 25 in West Bengal and only 15 units were located in other States. The State-wise distribution of small-scale units also presented a similar picture with Bombay accounting for 556 units of a total of 1,568 units in the entire country. West Bengal ranked second with 539 units. These two States thus accounted for 1,095 small-scale units. The following table illustrates this:—

 

Number of Units in 1952

 

Large-scale

Small-scale

Bombay

35

(47%)

556

(35%)

West Bengal ..

25

(33%)

539

(34%)

Other States  ..

15

(20%)

473

(31%)

 

75

(100%)

1,568

(100%)

Both the Central and State Governments were active participants in the industry in the then State of Bombay in the initial stages. Among the Government factories were, (i) the Medical Stores Depot at Bombay, (ii) the Indian Penicillin Bottling Plant at Pimpri, (iii) the Shark Liver Oil Factory at Sassoon Dock, Bombay and (iv) the Haffkine Institute at Parel, Bombay.

The following statement gives the capital invested, value of raw materials consumed, total sales and labour employed in the Central and State Government factories in Bombay State in 1952:—

Name of factory

Capital invested

Sales

Value of  Raw Material Comsumped
(Rs. in lakhs)

Labour employed

 

(Rs. in lakhs.)

Indigenous

Imported

Technical

Non-   technical

Total

1.

Indian    Penicillin Bottling Plant, Pimpri.

44.50

30.61

1.23    

    14.70

5    

      80

85

2.

Government Shark Liver Oil Factory, Bombay

2.10

3.00

1.09

 

3    

      11

14

3.

Government Medical Stores Depot, Bombay

2.40

10.00

7.00

 

13     

     57

70

4.

Haffkine Institute, Bombay

48.25

20.00

N.A.     

    N.A.

70    

    500

570

Total

97.25

63.61

9.32    

   14.70

91    

     648

739

Pharmaceutical and Drug Industry in Maharashtra

                 No. of Units
Large-scale            65
Small-scale            1,327
                    1,392

(1974)

Production

Bulk Drugs

Finished Products (Formulations)

 

(Rupees in crores)

Organised Sector

16.50(29.4%)

198.80(66%)

Small-scale Sector

2.15(41.3%)

43.00(62.3%)

Total

18.65(30.4%)

241.80(65.4%)

Figures in brackets indicate percentage of the total pharmaceutical industry in Maharashtra to that in India.

The history of the pharmaceutical industry in Bombay can be traced back to 1868 when the Kemp and Company was established to manu­facture pharmaceuticals. It was followed by the Zandu Pharmaceutical Works in 1910 which produced ayurvedic and allopathic medicines. Establishment of the H. J. Foster and Co. in 1924 was an important addilion to the industry. This company was subsequently renamed as Glaxo Laboratories in July 1968 which became a public limited company. It was followed by the May and Baker in 1928 and the Chemical, Industrial and Pharmaceutical Laboratories in 1935, in Bombay.

With these pioneers, the industry developed progressively, particularly in the post-Independence period. The earlier concerns have their plants mainly in the Worli, Prabhadevi, Dadar and Parel areas of Bombay, while comparatively new factories found a home in Andheri-Kurla region, Bhandup, Jogeshwari and Mulund regions. There are about 43 large-scale manufacturing concerns in Bombay at present. The rapid development of the industry in this city during the past about 25 years gave a great impetus to the growth of a very large number of units in the medium and small scale sectors in Bombay. The development of pharmaceuticals also encouraged growth of a large number of small scale units manufacturing containers, packing material an,d other ancillary industries in Bombay.

The industrial skyline of Bombay has, over the past 15 years changed very considerably from the smoking chimneys of leading textile mills to the neatly designed, modern sophisticated plants of complex chemical based industries with the pharmaceutical industry topping the list. The textile industry, undoubtedly, still dominates the industrial economy of Bombay in terms of employment, but with textiles already having become a " sick " industry, chemical-based industries, including pharma­ceuticals, now head the list of industries in the Bombay-Pune industrial belt.

Contrary to the trend of development of pharmaceutical industry in West Bengal, Bombay's growth in this vital sector has been on more modern and scientific lines. New units were set up not only with the latest technology available from the advanced countries but also with foreign capital participation. The post-Second World War boom in the pharmaceutical industry witnessed the opening in Bombay of the sales and jacketing offices of some leading pharmaceutical companies in the world. This coupled with the excellent infrastructure facilities available at Bombay and its environs stimulated the growth of the pharmaceutical industry in and around Bombay.

The initial free flow of international technology and know-how helped the nascent pharmaceutical industry to attain a degree of development and complexity that took double that time for many other developed countries to accomplish. In this endeavour almost all the major countries having a well developed pharmaceutical industry have contributed in one way or another. Thus, we have in Bombay region today pharmaceutical companies with British, American, Swiss, German, Japanese and Dutch collaboration.

This tie-up with leading foreign manufacturers has also given an impetus to research and development in this industry. Two of the country's best drug research laboratories are located in Bombay. The two research laboratories in Bombay, viz. CIBA-GEIGY Research Centre and Hoechst Research Centre have contributed immensely to technological advance­ment in the field. Another important consequence of this international co-operation in this most innovative, technology-based enterprise is that the industry today encompasses the whole spectrum of pharmaceutical operations, research and development, production, marketing, rigid quality control, personnel development and professional management. These factors have not only generated within the country the technological capability to produce drugs of the highest standards and quality but it has also put India firmly on the World map for pharmaceutical exports.

The statistics of by Annual Survey of Industries for 1973-74 and 1975-77 reveal immense development of the drugs and pharmaceutical industry in Greater Bombay. According to this survey there were 129 factories in 1973-74 which increased to 162(As per the Director General of Technical Development, Government of India, there are 43 large-scale factories in Bombay out of the total of 120 large-scale units in India.) in 1975-77. They provided employment to 21,013 persons including 15,045 workers in 1973-74 which increased to 24,380 persons including 14,204 workers in 1975-77. The capital investment in this industry increased from about Rs. 87.46 crores in 1973-74 to about Rs. 1,06.84 crores in 1975-77. The fixed capital of the factories was Rs.31,39,28,100 in 1973-74 and Rs. 38,25,90,000 in 1975-77. The working capital was increased from Rs.53,37,07,800 in 1973-74 to Rs.61,14,72,000 in 1975-77. This is a highly capital intensive industry requiring modern equipment.

The industry worked for 68,68,686 man-days, while its wage bill amounted to Rs. 32,05,81,000 per annum during the A. S. I. period of 1975-77. The factories had paid a wage bill of Rs. 21,21,73,300 in 1973-74. Fuel consumption of the factories was worth Rs. 2,16,44,700 in 1973-74 and Rs. 4,40,34,000 per annum in 1975-77. The value of raw material utilised was Rs. 94,48,97,100 in 1973-74 which increased to Rs. 12,90,359,000 per annum in 1975-77. The total value of inputs of the Bombay pharmaceutical industry was Rs. 1,07,61,06,900 in 1973-74 which stood at Rs. 1,69,94,71,000 in 1975-77. The total output of the factories increased from Rs. 1,63,60,11,000 to Rs. 2,49,22,10,000 per annum during 1975-77. The value of drugs and medicines produced increased from Rs. 1,59,22,63,400 in 1973-74 to Rs. 2,23,07,85,000 in the period 1975-77. The value added on manufacture was Rs. 52,24,79,300 in 1973-74 which increased to an impressive figure of Rs. 75,01,08,000 per annum during 1975-77. The value of plant and machinery increased from Rs. 34,75,90,100 to Rs. 41,07,07,000 during the period of comparison. The net income of the factories was as high as Rs. 66,32,17,000 per annum during the Annual Survey of Industries of 1975-77.

The above statistics lead us to the conclusion that the industry regis­tered a steady progress over the period of comparison. This highly capital intensive industry contributes significantly to the gross national product, besides providing employment to 24,380 persons. This is also a highly paid industry which assures good returns on capital. In fact, it is one of the most prosperous and developing industries. It has hardly suffered from stagnation or any other development problems which are peculiar to many other industries in the country. With the growing health consciousness and medical services available, the industry never suffered from demand recession also.

The large-scale pharmaceutical companies in Bombay are found to distribute very high rates of dividend on shares. The units in this city are reported to export medicinal products worth more than Rs. 20 crores per annum. It is thus an important industry from the point of view of exports. Though the development of the pharmaceutical industry in Bombay, as that in India, is yet to match, in some respects, with that in the advanced countries in the world, it is nevertheless pre­eminent among the developing countries in this field. As the UNIDO Expert Group put it, the level of operations of this industry, which is comparable to international standards in production technology and quality of products, had been reached after many years of experience with international collaboration. Some of the multi-national companies have undertaken an intensive research and development programme so as to reach advanced international standards. Their progress in the production of the most complex synthetic drugs, antibiotics and a wide range of therapeutic and prophylactic medicines have also contributed to raising the standard of medical care in the country.

In view of the crucial life-saving products of this industry, Government have been devoting considerable attention to its needs and regulating its working. Recently the Government of India, on the basis of the Hathi Committee Report, has decided to allocate priority to the public sector; to regulate the equity participation of multi-national companies to 40 per cent in case of those not engaged in bulk drugs involving high technology and to rationalise price structure in the case of many drugs. These measures are in the best interest of the country, and are not likely to hamper the progress of the industry in Bombay.

COSMETICS, SOAPS AND DETERGENTS

This segment of industry is conceived, for purposes of this analysis, to include manufacturing perfumes, cosmetics, lotions, hair dressing materials, tooth pastes, soaps, synthetic detergents, shampoos, shaving products, cleaners, washing and scouring products and other toilet preparations. The industry thus covers a wide range of chemical-based goods of house­hold use. This classification of the industry accords with the grouping adopted by the Annual Survey of Industries, the detailed statistics according to which are furnished in Table No. 10 in this chapter. As per the Annual Survey of 1975-77, there were 40 registered factories engaged in this industry in Bombay which provided employment to 8,112 employees including 6,242 workers. The fixed capital in the factories in Bombay was Rs. 28,54.41 lakhs, the working capital Rs. 30,53.31 lakhs, while the invested capital was Rs. 82,54.41 lakhs. The outstanding loans of the companies were very high at Rs. 56,29.95 lakhs which were a little less than the fixed and working capital taken together. The industry worked for 26,97,609 man-days per annum. The total emoluments paid to employees were Rs. 11,14.38 lakhs while the share of wages to workers was comparatively lower,  viz., Rs.  6,03.16 lakhs. This shows the preponderance of technically qualified personnel over workers.


The raw material consumption of the factories was to the order of Rs. 1,34,74.14 lakhs, the other inputs being worth Rs. 22,98.15 lakhs per annum. The value of plant and machinery in the industry was Rs. 28,41.88 lakhs. The value of total inputs was computed at Rs. 1,64,10.63 lakhs as against the total output of Rs. 2,18,38.82 lakhs per year during the survey period. The value of products was to the tune of Rs. 2,06,04.86 lakhs. The value added on manufacture by the industry was computed at Rs. 51,97.68 lakhs. The net income of the factories in Bombay was enumerated at Rs. 47,49.77 lakhs.

These statistics bring home some conclusions about the industry. The outstanding loans are quite high. The ratio of output to inputs is very high which means high profitability in the industry in Bombay. The value added is also considerably high. The total output is about 260 per cent of the invested capital. It means higher returns on capital.

Though attempts were made as early as 1879 to manufacture soap on western lines at Meerut, the first soap factory in India on modern lines was established as a private enterprise by the Tatas at Cochin. This was followed by manufacture of soap by the Godrej and Boyce in Bombay, which was the first factory in Bombay and second in India. When the Tatas and the Godrej entered the field, India was importing soap. But the swadeshi movement launched by nationalist leaders gave a great fillip to the indigenous industry to strive. By about 1930, several big and medium sized factories started operation by trained personnel, and about 85 per cent of the material could be obtained in India. But soon the industry had to face foreign competition. With a view to organise the industry on an All India basis, the All India Soap Manufacturers' Associa­tion came into existence in 1934 at Calcutta. The establishment of soap factories by the Lever Brothers, now called Hindustan Lever, in 1933-34 gave new dimensions to the industry, with which imports of soap fell down. The Second World War provided an impetus to the Indian industry as there was a drastic curtailment of foreign supplies. (Kothari's Investor's Encyclopaedia) Since the Second War there was a gradual growth of small-scale soap factories. The industry in the cottage industry sector received encouragement from the cult of Khadi and Swadeshi, particularly from the Khadi and Village Industries Commission, which has a big centre at Borivli in Bombay, known as Kora Gramodyog Kendra.

Synthetic detergents now occupy an important place in soaps and cleaning media. Synthetic detergents were not manufactured in India before the Second Five-Year Plan, though their usefulness in washing costly fabrics like rayon, silk and nylon had already made them popular. The Swastik Oil Mills of Bombay went into production of synthetic detergents for the first time in India in 1957. In the following year another unit, namely, Hindustan Lever, Bombay, took up production of synthetic detergents. The combined annual capacity of the two units was 7,315 tonnes in 1961. Additional production capacity amounting to 5,304 tonnes was licensed to new units in Maharashtra and one in West Bengal. (Handbook of Commercial Information, 1963)

Besides the numerous small manufacturers of soap and detergents in Bombay, the principal companies which deserve mention are as under. The Godrej Soaps, the oldest in Bombay, has a factory at Vikhroli. It has an installed capacity to produce 13,860 tonnes of soaps and 20,000 tonnes of fatty acids. The sales turnover of the unit in respect of soaps was Rs. 8.49 crores in 1978-79 and Rs. 11.51 crores in 1979-80. The total turnover was worth Rs. 81.36 crores and Rs. 1,05.93 crores in the two years, respectively. The Tata Oil Mills with a factory at Sewri and another one in the city produces a wide range of soaps and vegetable oils as under(A state-wise Picture of Large Scale Industrial Activity, 1981)

(Rs. in crores)

Item 

Installed capacity (Tonnes)

Sales

Turnover

 

1978-79

1979-80

Soaps

51,300

 

1,19.57          1,01.51
(Including  other units.)

Synthetic detergents

11,698

Toilet preparations

1,690

Vegetable oils

10,913

The Hindustan Lever, established in 1933-34, is another giant manu­facturer of popular soaps, detergents, toilet preparations glycerine and vanaspati. The Johnson and Johnson with plants at Mulund manufactures perfumes, cosmetics and other toilet preparations and baby soaps. The Muller and Phipps(India) Ltd. with a factory at Vile Parle produces talcum powder (900 tonnes), detergents (288 tonnes) and soaps, medical preparations and insecticides (2.50 lakh litres). The figures in brackets indicate installed capacity. The total sales turnover of the company was worth Rs. 5.25 crores and Rs. 6.10 crores, respectively in 1978-79 and 1979-80. (Ibid.)

In the field of perfumes, cosmetics and toilet preparations, the principal manufacturers include, the Lakme Ltd. (1952) and the Colgate Palmolive Ltd., Burroughs Wellcome and Co. (1912), Ciba-Geigy of India, Duphar Interfran, Geoffrey Manners (1943), Glaxo Laboratories, Herbertsons Ltd. (1936), Industrial Perfumes (1957), Johnson and Johnson (1957), and Kelkar and Company (Mulund). The years of establishment are given in brackets wherever available, as per the Bombay Chamber of Commerce Directory. The tooth-pastes manufactured by the Hindustan Lever, Colgate Palmolive, Ciba-Geigy and Vicco Laboratories in Bombay find a good market, though there are other companies out of Bombay which also share the market. Tooth-brushes are manufactured in Bombay by the Colgate Palmolive, Ciba-Geigy, the Aryan Ltd. and many others.

PLASTIC MATERIALS, SYNTHETIC RESINS AND FIBRES AND TURPENTINE

This sector of chemical industry is conceived to comprise manufacture of turpentine, synthetic resins, plastic materials and synthetic fibres like nylon, teryelene except glass. This is also the classification adopted by the Annual Survey of Industries, the statistics according to which are furnished in Table No. 10 under Chemicals and Chemical Products industry. According to the Annual Survey there were 129 factories in this industry in Bombay in 1973-74 which provided employment to 6,828 employees including 4,992 workers. The number of factories declined to 29 in 1975-77 which provided employment to 4,304 employees including 2,847 workers. The capital investment in the industry was valued at Rs. 56,02.73 lakhs in 1973-74 and Rs. 50,84.65 lakhs in 1975-77. The factories consumed raw material worth Rs. 55,24.00 lakhs and Rs. 45,22.24 lakhs, respectively in 1973-74 and 1975-77. The value of products of the factories was of the order of Rs. 1,05,29.17 lakhs in 1973-74 and Rs. 77,37.89 lakhs per annum in 1975-77. The total output of the industry in Bombay was computed at Rs. 1,07,76.83 lakhs in 1973-74 and at Rs. 82,41.11 lakhs in 1975-77. The value of total inputs was computed at Rs. 68,63.49 lakhs and Rs. 62,08.55 lakhs, respectively in the above mentioned years. The value added on manufacture in the years under reference was enumerated at Rs. 34,21.91 lakhs and Rs. 15,87.87 lakhs in 1973-74 and 1975-77, respectively.

It can safely be deduced from the above statistics that there was an all-round decline in the industry in Bombay over the period of study. The decline was in respect of all aspects including number of factories, employment, capital, consumption of raw material, production, inputs, output as well as value added on manufacture. The decline might, however be a transitory stage in the period studied. The high ratio of output to inputs and a large quantity of value added on manufacture show the profitability of the industry. It is not a labour-intensive industry, while it requires highly sophisticated machinery. The manufacture of plastic chemicals and synthetic fibres involves the use of the latest type of machinery and advanced technology.

Plastic now forms an integral part of modern life and finds a place everywhere in industry and at home. It is closely linked with the develop­ment of basic chemicals in the country, and the development of this industry is due to its versatile application. The flexibility with which plastic materials can be worked makes them simple and cheaper than metals, wood, stone or ceramics. Their properties can be altered to meet specific needs. The lightness of plastic in weight, its resistance to corrosion, easy formability, thermal and electric resistance, and complete colour range makes it useful in a wide range of consumers goods as well as electric goods and industrial uses.

The development of the plastic industry in India as in other countries, assumed special significance with the development of some basic chemical industries., The growth of the chemical industries in the country during the Second Five-Year Plan encouraged the growth of the plastic industry. (Kothari's Investor's Encyclopaedia.)

The plastic industry hardly existed in India before the Second World War. Government encouragement, war-time demand, and needs of growing industrialisation provided a stimulus to this industry. Its growth was both supplementary to other industries and substituting to the products of glass and metal industries.

The fabrication of end products from imported plastic materials marked the beginning of the plastic industry, while the manufacture of plastic chemicals commenced much later. The beginning of the Indian plastics industry could be traced to the moulding of celluloid articles from imported celluloid sheets and rods during the thirties of this century. The articles produced by the pioneering units were combs, soap boxes, ash trays and similar domestic articles. The manufacture of combs was started at Jessore, now in Bangla Desh, in 1926. (Handbook of Commercial Information, 1963.)  Over the years the plastic industry has grown into a major industry producing hundreds of items apart from articles like leather cloth, PVC sheeting, phenolic laminates, polyethelene films and tubes.

Tariff protection to the industry started with the protective levy on phenol formaldehyde moulding powder and electrical accessories in 1950. (Ibid).The protection was extended from time to time upto December 1959. The protection was particularly liberal to the section engaged in the manufacture of phenol formaldehyde moulding powder and plastic buttons.

The indigenous industry was centred mainly in Bombay and Calcutta, though it has decentralised to many other centres in the country. The Indian Plastics Ltd. founded in 1944 is a pioneering manufacturer in Bombay. It has a factory at Kandivli which manufactures plastic articles in a very big range, electrical accessories, PF moulding powders, UP and MF moulding powders and synthetic resins. Its production capacity and actual production in a latest year are given below(A State-wise Picture of Large Scale Industrial Activity, 1981.):—

Item

Installed capacity

Production (Tonnes)

Sales Turnover 1978-79 1979-80

PF moulding powder

2,400

1,603

(Rs. in crores)
 5.51                5.38

UP and MF moulding powder 

1,050

481

Synthetic resins

1,000

266

This company is setting up a joint venture chemical project in Indonesia the approval to which is granted by the Government of India. The Plastic Extruders, Bombay, were manufacturing lay-flat tubing’s. The manufacture of PVC sheets was started in 1954 by the Plastic and Industrial Corporation, Bombay. This firm also took up the production of long-playing phonograph records. (Kothari's Investor's Encyclopaedia.) The Polychem Ltd., Bombay, founded in 1957 has one factory at Goregaon and another at Chembur. It manufactures a number of chemicals, cellulosic plastics, polystyrene styrene monomers, and other thermosetting, thermoplastic materials. It has collaboration agreement with an international company.

The Caprihans India Ltd., a foreign company, has a plant in Sewri, besides other plants at Thane, Nashik and Roha. It manufactures PVC sheets, acrylic sheets, laminates and clay coated paper. The sales turnover of all the units of the company amounted to Rs. 20.78 crores in 1978-79 and Rs. 25.27 crores in 1979-80. It is expanding its production capacity of rigid and flexible PVC films and sheets to 7,680 tonnes per annum. (A State-wisa Picture of Large Scale Industrial Activity, 1981.) The Exomet Plastics with works in Bombay and Taloje (Raigad district) is another manufacturer of high density polyethelene pipes, etc.

Synthetic fibres have revolutionised the entire textile industry. They have several economic advantages over cotton and other natural fibres. Synthetics are more durable, bright and can be manufactured in a wide range of colours and sheds. They are wrinkle-proof and do not require frequent ironing as in the case of natural fibres. It is therefore natural that synthetic fibres should replace natural fibres in the wearing apparel as in other uses.

The growth of the synthetic fibre industry is of very recent origin. The manufacture of nylon and teryelene fabrics started on a commercial scale in the mid-fifties. Nylon garments preceded teryelene and acrylic fabrics in the markets. In the initial stages the fibres were imported in bulk. The Nirlon Synthetic Fibres and Chemicals Ltd., established in Bombay, in 1958 has a factory at Goregaon (East). It manufactures nylon textile yarn, polyester yarn and nylon tyre cord.
The Garware Plastics Ltd., Bombay, established in 1947, is a large-scale manufacturer of all kinds of plastic items like rigid PVC pipes, conduits and sheets, flexible PVC tubes, sheets and films, polyester films, industrial moulding, electrical conduits etc. It also produces high impact polystyrene sheets for refrigerators and vacuum forming industries as also injection moulding of highly sophisticated items like cabinets of transistor radios, television sets, tape recorders, cassettes, battery containers, and helmets used in defence services and mines. It also manufactures nylon tyres for conveyor systems and other kinds of custom moulded applications involving high degree of accuracy and precision. It's associate company, the Garware Nylons at Pune manufactures nylon filament yarn and polyester filament yarn. The Garware Synthetics produces nylon bristles, fishing twine and a number of synthetic items. (Bombay Chamber of Commerce Directory, 1976).

The Bhor Industries established in 1943 has two factories in Bombay, viz. at Prabhadevi and Borivli which manufacture PVC films and sheets, PVC foam leather cloth, PVC adhesive tapes, PVC asbestos flooring tiles, coated wall paper and a variety of sheets and films. The Blow Plast established in 1965 has a factory at Bhandup besides the one at Nashik. It manufactures PVC footwear also.

The machinery installed by the industry is imported in some measure. A few engineering concerns in Bombay and Calcutta are now manufactur­ing some machinery. Though some concerns have setup tool rooms and production of moulds for compression and dies for extrusion, the complicated moulds are imported.

It was mainly in the sixties of this century that the industry made rapid progress on account of the establishment of the petrochemical complexes in and around Bombay. The plastic industry has been facilitated by the development of the petrochemical units which made available petroethylene to produce PVC and polyethylene. Its growth was accelerated also by the rise of plastic machinery manufacture and the availability of technical know-how.

PAINTS, ENAMELS, VARNISHES AND PIGMENTS

This is an important industry which is mainly localised in Bombay and Calcutta. Being the cheaper protective agent, for durable articles of industrial use^ the functions of the paint industry are similar to those of packing and storage in the marketing of goods. The important consumers of this industry are the railways, transport companies, automobiles, ships, aeroplanes, building operations, and electrical equipment and appliances.

The first production of Indian paints commenced on a small scale in 1890 near Calcutta. (Dr. H. Trivedi, "Indian Paint and Varnish Industry".)  The first large-scale unit was incorporated in 1902 also near Calcutta. Till the end of the First World War, the latter was the only unit engaged in the manufacture of paints on a large scale in the country. In the initial stages, the indigenous industry which was managed by British firms supplied marine finishes and general structural paints, while the needs of the paints of high quality were met by imports. With the increasing demand for paints during the First World War, Indian industrialists turned their attention to this field, and thus some of the prominent paint manufacturing concerns in India came into existence. During the inter-war years many small units also commenced production of paints. During the Second World War, a large demand for paints and varnishes coupled with scarcity of imported materials provided a stimulus to the indigenous industry. The rapid growth of the paints consuming industries after Independence offered a further stimulus to the development of the paint industry.

Prior to the First Plan period there were 50 major organised units and about 200 small units engaged in manufacturing of paints, varnishes and enamels in the country. Of the major units, 16 were in Maharashtra and 18 in West Bengal. Of the total production capacity in the industry which was estimated at 65,000 tonnes in the country in 1951, 46,000 tonnes was accounted for by the firms in Maharashtra and West Bengal. Most of the units in Maharashtra were from Bombay.

The production of paints, varnishes, enamels and lacquers failed to hit the target during the Second Plan. Nevertheless, production increased substantially during that period. There was considerable improvement in quality surface quoting materials, such as aluminium paints, natural and synthetic enamels, healed varnishes and insulating varnishes after about 1960-61. New items like super synthetic enamels for coating of copper wire, finishes for bakelite, luminous paints, lacquer finishes, cold cure epikote finishes, hot dip protective coatings, level indicating paints, paints capable of withstanding temperature of the order of 1500 F. Food can lacquers, special adhesives for layer batteries, gasolene finding paste, synthetic iron oxide pigments and pigment dyestuffs were also being manufactured after 1960-61.

The development of synthetic paints also known as latex paints was started mainly after 1960-61. These paints are generally based oh polymers such as styrene butadiene, vinyl acetate, and polyacrylates. The paint industry was brought within the purview of the Industries (Development and Regulation) Act of 1951 from 1957.

There were 34 factories engaged in the manufacturing of paints, enamels, varnishes and pigments in Bombay in 1970, of which two were established during the decade 1910-20; three duting 1931-40; nine during 1941-50; fifteen during 1951-60 and five during 1961-70. (Prospects of Co-operative Movement in the Paint Industry, Indian Paints and Allied Industries Association). The various phases of the growth of the industry can be judged from these figures.

The Asian Paints with two factories, one in Bombay and another at Taloje near Bombay is one of the famous paint manufacturers in Bombay. The value of its sales was computed at Rs. 34.60 crores in 1978-79. The Goodlass Nerolac Paints, a foreign concern has a factory at Lower Parel besides a unit at Thane. The sales turnover of this company was to the extent of Rs. 19.59 crores in 1978-79 and Rs. 26.57 crores in 1979-80. The third reputed company at Chembur, viz., the Bombay Paints and Allied Products has an installed capacity to produce about 12,000 tonnes of paints, enamels, varnishes, etc. Its sales turnover amounted to Rs. 6.30 crores in 1979-80.(A state-wise Picture of Large Scale Industrial Activity,1981.)

Top

RUBBER, PLASTIC, PETROLEUM AND COAL PRODUCTS INDUSTRY

The manufacture of rubber, plastic, petroleum and coal products is one of most important industries of Bombay. This sector of industries is comparatively very young in age, the first rubber factory being started only in 1921 in Bengal. Production of natural rubber in the country and a vast potential market have contributed to the growth of rubber industry. It attracted some foreign as well as Indian pioneers to enter this industry. The Second World War provided the impetus to its growth which received further encouragement with development planning after 1950-51. The industry made tremendous progress since the mid-fifties.

The industry manufactures a wide range of products from heavy duty automotive tyres to tiny articles like balloons, including innumerable types of specialised industrial and mechanical products required by various industries like the automobile, aircraft, railways, shipping, textiles, pharmaceuticals, sports goods, engineering as also agricultural goods. It also caters to the needs of defence forces of the country.

The rubber, plastic, petroleum and coal products industry of Bombay is a highly modernised and sophisticated industrial sector. The industry is characterised by a high degree of rationalisation and advanced technology which are a sine qua non for its development. It is managed by technocrats of high merit and experience. A number of  chemical technologists and technocrats are available in Bombay.

The rubber and rubber products industry of Bombay comprised 50 registered factories which provided employment to 4,518 workers in 1956. It was still a very young industry in the city which expanded in subsequent years. The petroleum and coal industry was also in its infancy in 1956 when it comprised 14 factories providing employment to 5,358 persons. Of the 50 rubber and rubber products factories, 36 were in the suburbs, the rest being in the city. Of the 14 factories engaged in petroleum and coal products, 8 were in F Ward while only two were in the suburbs. The subsequent development of both these industries was in the suburbs of Bombay.

According to the All India Rubber Industries Association there were over 200 rubber goods manufacturing units in Greater Bombay, of which 45 were its members in 1977. However, these 45 units accounted for 80 per cent of the total consumption of raw rubber. Most of the factories which are not members of this association are in the small-scale or cottage industry sector. The rubber industry, according to the association, provided employment to about 12,000 workers in Bombay in 1977.

The industry is a capital intensive one with exception of a few sectors which are labour intensive. The industry's total turnover is estimated to exceed Rs. 750 crores, and employment over a lakh of persons (in India). (All India Rubber Industries Association (Information received).) The industry's average annual growth rate during the Post-Independence period has been of the order of 8.8 per cent. This growth can be attributed to factors such as, (i) vast internal market, (ii) rapid industrialisation in the country, (iii) improvement in standard of living of the people, and (iv) availability of raw materials. Maharashtra accounts for about 23 per cent of the country's total consumption of raw rubber.

The industry caters to most of the needs of the Indian market. Besides, it has also emerged as an  exchange   earner (The total exports from Maharashtra were worth about Rs. 3.84 crores in 1975-76.). In the matter of quality, Indian rubber products are comparable to those of industrially developed countries.

In the paras that follow the important rubber products industries are dealt with individually.

The Annual Survey of Industries has grouped the tyre and tube industry and petroleum refineries under the category of manufacture of rubber, plastic, petroleum and coal products. In the nature of things, Bombay ranks first in Maharashtra as regards the development of this industry, while Bombay's share in the production of the goods is very high as compared to the production in India also. As per the Annual Survey of Industries (1975-77), there were 538 factories in this segment in Bombay which accounted for 73.30 per cent of the total number of factories engaged in the manufacture of rubber, plastic, petroleum and coal products in Maharashtra State. The invested capital of the factories in Bombay was as high as Rs. 1,37,55 lakhs which formed 75.58 per cent of the invested capital of all factories, in this category in Maharashtra. The factory employment in this sector in Bombay was to the order of 24,691 or 71.88 per cent of the total employment in this sector in the State. The value of output of this industry in Bombay was Rs. 4,67,51 lakhs which accounted for 84.32 per cent of the total output in Maharashtra. this clearly indicates the spectacular share of Bombay in the output of these products in Maharashtra. The value added manufacture by the sector of industry in Bombay which was worth Rs. 45 34 lakhs or 73.24 per cent of the total for Maharashtra also shows the eminence of the city in' this field as in others.

The structure of the rubber, plastic, petroleum and coal products industry in Bombay can be studied from the statistics of Annual Survey of Industries in 1973-74 and 1975-77 as furnished in Table No. 11.

TABLE No. 11
Manufacture of Rubber, Plastic, Petroleum and Coal Products, Greater Bombay

(Figures of Rs. in lakhs)

 

Item

Rubber, Plastic, Petroleum and Coal products

Tyre and Tube industry

Petroleum Refineries

1973-74

1975-77

1973-74

1975-77

1973-74

1975-77

1

2

3

4

5

6

7

8

1.

No. of estimated facto­ries.

464

538

28

21

6

7

2.

Fixed capital (Rs.)

66,88.63

62,67.53

8,67.11

11,11.27

40,51.96

35,35.34

3.

Working capital (Rs.)

50,60.17

52,64.58

10,35.19

10,42.61

21,97.56

26,88.63

4.

Capital investment (Rs.)

1,20,11.50

1,37,55.14

21,89.05

28,03.02

55,21.82

74,25.79

5.

Outstanding Loans (Rs.)

47,52.07

51,68.17

7,24.81

15,83.40

16,88.75

8,67.78

6.

Mandays worked

N.A.

71,68,265

N.A.

15,84,585

N.A.

6,21,822

7.

All workers

20,964

18,281

4,218

3,905

1,499

1,209

8.

All employees

27,046

24,691

5,650

 5,378

2,222

       1,786

9

Wages to workers (Rs.)

9,88.26

11,28.54

3,49.12

3,96.63

1,86.95

2,18.12

10.

Total emoluments (Rs.)

   17,44.29

  22,11.11

5,99.29

7,94.57

414.39

4,84.69

11.

Fuel consumed (Rs.)   ..

7,32.27

13,15.67

1,40.02

3,20.39

4,41.37

6,87.59

12.

Material consumed (Rs.)

1,5643.59

3,63,18.81

29,40.82

68,03.78

68,82.09

2,36,51.47

13.

Other inputs (Rs.)

N.A.

37,77.07

N.A.

515.30

N.A.

13,27.59

14.

Total inputs (Rs.)

1,90,74.03

4,14,11.55

42,19.50

76,39.47

80,31.24

2,56,66.65

15.

Plant and Machinery (Rs.)

N.A.

97,43.95

13,71.22

17,38.87

51,54.38

56,19.22

16.

Value of products (Rs.)

2,02,29.62

4,26,25,27

36,48.30

90,30.19

82,78.19

2,50,71.55

17.

Value of other output (Rs.)

N.A.

41,26.13

N.A.

3,17,32

N.A.

21,36.93

18.

Total output (Rs.)

2,40,64.78

4,67,51.40

56,14.28

93,47.51

99,25.26

2,72,08.48

19.

Depreciation (Rs.)

6,44.48

8,05.70

1,24.95

1,57.55

3,18.39

  3,46.31

20,

Value added on manu­facture (Rs.)

43,46.26

45,34.16

12,69.81

15,50.48

15,75.62

11,95.52

21.

Factory payment (Rs.)

N.A.

7,99.07

N.A.

2,49.08

N.A.

1,51.68

22.

Net income (Rs.)

N.A.

37,35.09

N.A.

13,01.40

N.A.

10,43.84

TYRES AND TUBES

The tyre and tube industry is an important sector of the rubber industry. This sector of industry in India is about 45 years old. In 1936, the Firestone Rubber Tyre Co. and the Dunlop Tyre Co. started manufacture of tyres and tubes. This was however a modest beginning as the number of automobile vehicles was extremely limited and a bulk of the demand was met from imported goods. With the expansion of the automobile industry and acceleration of demand for passenger cars and commercial vehicles after 1955, the demand for tyres and tubes increased immensely. Consequently, the industry received encouragement in the early sixties of this century. There are at present (1980-81) 16 factories engaged in the manufacture of automobile tyres and tubes with an installed capacity of about 79.29 lakh tyres and tubes per annum. Production of automobile tyres showed an increase of nearly 8.5 per cent (compound rate) in the last two decades, while the corresponding figure for tubes is also an impressive one, viz. 7 per cent.

The unprecedented spurt in prices of petroleum products which affected automobile production, have had an adverse impact on the demand for tyres and tubes. This was however not a very significant factor, because despite the rise in prices, the demand for automobile vehicles has ever been on the increase. The government and public sector undertakings are acquiring vehicles on a very increasing scale. Besides, manufacture of tyres and tubes is a defence oriented industry, as the demand for heavy armoured vehicles, medium vehicles and light vehicles for the army, navy and air force of India has been multiplying. In fact, Government is a major single buyer of tyres and tubes.

The development of this industry indigenously has reduced the necessity of import of the goods during the last about a decade or more. It is thus an important industry from the point of view of import substitution. At present tyres and tubes of only aircrafts (both civil and air force) and tractors are imported. On the other hand, the growth of exports of tyres and tubes to foreign countries has been phenomenal after 1970. The major items of exports are truck and bus tyres and tubes which constituted nearly half the total value of exports of tyres and tubes.

Two of the large manufacturers of automotive tyres and tubes have their plants in Bombay. The account of these giant companies is given below :—

The Ceat Tyres of India incorporated in 1958 is one of the most eminent tyre and tube manufacturers in India. This concern with collaboration with Ceat International S. A., Switzerland, manufactures different kinds of rubber tyres, tubes, flaps and tread rubber in its factory at Bhandup (Bombay) and in its branch factory at Nasik. The authorised capital of this concern is Rs. 12 crores of which Rs. 4.45 crores is subscribed. The analysis of its working is given briefly below:—

(Rs. in lakhs)

 

1979

1978

Total Current Assets

3370.04

2980.49

Total Assets

4332.92

3862.25

Total Current Liabilities

1896.89

1473.07

Total Liabilities and Net Worth

4332.92

3862.25

Sales

10333.88

8658.01

The company has obtained a licence for production of additional 1.6 lakh automotive tyres and tubes, each per annum at its Bhandup plant. The total licensed capacity of the company is to manufacture 10.1 lakh automotive tyres.

The raw materials used by the company include natural and synthetic rubber, carbon black, rayon and nylon tyre cord. (The major consumption of rubber is by the automotive tyre and tube industry which is around 50 per cent of the rubber consumption in the country. Thus, there is a link between price of rubber and that of tyres.)

The Bombay Tyres International, formerly known as Firestone Tyre and Rubber Company of India, is another principal manufacturer of tyres from small scooter tyres to giant earthmover tyres in Bombay. It also manufactures tubes, flaps, compound stocks, retread and repair materials. The company was incorporated as a private limited concern in 1930 under the name Firestone Tyre and Rubber Company, and was renamed as at present afterwards. It was converted into a public limited company in 1979. Its authorised capital is Rs. 6 crores, while subscribed paid up capital is Rs. 3.33 crores. It comes under the F. E. R. A. Act. The Bombay Tyres International has a licensed capacity to manufacture 6.72 lakh automotive tyres per annum. It has a factory at Sewri, the sales of which amounted to about Rs. 57.73 crores in 1979-80.

As per the Annual Survey of Industries there were 28 tyres and tubes factories in Bombay in 1973-74 which declined to 21 in 1975-77. The decline in number of factories was followed by a decline only in employment. There was however an all-round rise in capital, inputs, output, and value added on manufacture and practically all other aspects. The detailed statistics are given in Table No.11.

Over a decade ago, the industry had to depend entirely on import of most of its major raw materials including synthetic rubber, carbon black, rubber chemicals, etc. This position has changed considerably and most of the raw materials required by the industry are now being manufactured within the country and a major portion of the industry's needs is met with from indigenous sources. Natural rubber is obtained from Kerala, Tamilnadu and Karnatak. Natural rubber has however its own limitations and it may not be able to meet the growing demand of the fast expanding rubber industry. This coupled with advancing technology, need for sophisticated rubber products and rapid industrialisation have necessitated production of synthetic rubbers with certain properties. Thus synthetic rubber has an edge over natural rubber. Synthetic rubber is obtained from Bareilly (U.P.) and other sources in the country as it is not manufactured in Bombay. The prices of indigenously manufactured synthetic rubber are higher than those in international markets. This is mainly due to shortage of raw material, coal, power supply etc. The Government of India is alive to this aspect of the industry and is taking measures for redressal. Some quantity of synthetic rubber is imported. The third variety of rubber, namely, reclaim rubber is indigenously available. Some quantity of reclaim rubber is also exported.

Carbon Black is an essential raw material of the rubber industry which was entirely imported upto 1963. At present there are two companies manufacturing carbon black in the country, one of which is in Bombay. The Union Carbon India Limited at Bombay was commissioned into production in October 1966 with a licensed capacity of 30 million lbs. The present capacity of this unit is 35,700 tonnes per annum. With the incorporation of this unit, this essential raw material is readily available in Bombay. The quality of the carbon black manufactured by the Bombay factory is satisfactory, and it is also exported in some quantity to foreign markets.

 Tyre Cord is the most important raw material of the automotive tyre industry. There are three types of tyre cords, viz. cotton .tyre cord, rayon cord, and nylon tyre cord. The use of cotton tyre cord in the auto­motive tyre industry is very negligible, while rayon cord and nylon cord are used in bulk quantity. Rayon cord is manufactured by the National Rayon and the Century Rayon on the outskirts of Bombay, while nylon cord is manufactured by the Nirlon Synthetic Fibres and Chemicals Ltd. at Goregaon in Bombay. The manufacture of nylon cord and rayon cord has revolutionised the automotive tyre industry not only in Bombay but also in India.

Rubber Chemicals : Rubber chemicals are a sine qua non for the growth of rubber industry. The Bayer (India) Ltd. and the Mindia Chemicals Ltd. with their plants in Bombay are two of the three large-scale manufacturers of rubber chemicals in India. They produce such chemicals in bulk quantity, and have contributed to the growth of the rubber industry. There are a few other units in the small-scale sector manufacturing rubber chemicals. The quality of the rubber chemicals produced by the above referred companies as also,, the Alkali and Chemical Corporation of India, Calcutta, is of international standards.

Besides the main raw materials mentioned above, there are several other raw materials going into the manufacture of rubber products, the important among them being textiles, sulphur, titanium dioxide, zinc oxide, stearic acid, colours, etc. Most of these materials, with the exception of sulphur which is imported, are available in the vicinity of Bombay though a few of them are obtained from other parts of the country. As' for titanium dioxide, there is only one unit manufacturing this product in the country at present. (N. K. Patel, Indian Rubber Industry (booklet))

CYCLE TYRES AND TUBES

Another important sector of the industry next to automotive tyres is cycle tyre and tube sector accounting for about 13 per cent of the industry's total rubber consumption. Formerly cycle tyres and tubes were manufactured by the large automotive tyre manufacturing companies. Since the reservation of cycle tyre manufacture for small-scale sector by Government a few years back, many small-scale units have entered the field. Some of the automotive tyre manufacturing uniis which were licensed earlier for manufacture of cycle tyres, but had lower installed capacity,  have also started producing them with increasing demand from the upcountry.   

    
The figures for production of cycle tyres and tubes in Bombay are not separately available. The estimated production of types was five crores (No.) and of tubes also five crores in India in 1978-79. (N. K. Patel, Indian Rubber Industry) This industry is steadily progressing and holds out good potential due to ever-increasing use of bicycles by the country's vast population.

RUBBER FOOTWEAR

The rubber footwear industry ranks third in the rubber industry, accounting for about 9:8 per cent of the total rubber consumption. The industry manufactures a large variety of footwear including all rubber, canvas/leather uppers and rubber soles, sports shoes, gum-boots, combat-boots for defence forces, ladies and children footwear in different shapes and fashions.

The Carona Sahu Company established in Bombay in 1953 is one of the most important manufacturers of rubber footwear not only in Bombay but also in India. The account of this company is given under leather industry in this Chapter. Besides, there are a number of small-scale factories and cottage units engaged in this industry. In fact small-scale and cottage sector in this industry accounts for a major part of the production of footwear.

As per the Task Force Report, about ten crores pairs of rubber footwear were manufactured in India in 1978-79. Production figures for Bombay are not readily available.

It is noteworthy that while the total demand for footwear has always been on the increase, the in-roads made by the PVC footwear have adversely affected the rubber footwear industry during the past years.

As per the Annual Survey of Industries of 1973-74, there were 25 registered factories manufacturing rubber and plastic footwear which provided employment to 2,200 employees including 1,865 workers in Bombay. The capital invested in the industry was Rs. 3,55.90 lakhs. The total output and total inputs were computed at Rs. 6,43.79 lakhs and Rs. 5,43.78 lakhs, respectively. The value added was computed at Rs. 77.12 lakhs in 1973-74. The ratio of output to inputs shows the high productivity and profitability of the industry in Bombay.

GENERAL RUBBER GOODS

Production of various rubber goods like industrial and mechanical products such as beltings-transmission, conveyor, V-belts, etc. hose pipes-radiator, vacuum brake, and components and parts required by railways, defence forces as well as by various industries like textiles, surgical and pharmaceuticals, automobiles, aircraft and a number of other engi­neering industries, as also of rubberised fabrics and latex goods, is fast increasing in view of the rapid industrialisation in the country. The demand for agricultural rubber products like hose-pipes, rubber products for sprayers and dusters, tube well pumps and parts for tractors, is also growing owing to expanding agricultural operations.

PETROLEUM INDUSTRY

The Petroleum industry is by far the most vital sector of the national economy. The pace of industrialisation and economic growth of the country is conditioned by the availability of petroleum products which are so very scarce. The oil explorations in the rich Bombay High Oil fields have redeemed the national economy and raised very high hopes on availability of the vital source of energy to the country. The Bombay High is a saga of the Indian effort towards economic prosperity and self-sufficiency. It is also a challenge to the Government and experts, accord­ing to whom no other project taken up during the last 30 years in the country has thrown up so many challenges as Bombay High. It is however a fatefull landmark in the economic history of India, a little short of a tryst with destiny, and an occasion for national jubilation.

The history of oil exploration in India is traceable to the 19th century when the Assam Oil Company and Burmah Oil Company and their associates started oil exploration in the upper Assam region. From 1949 to 1960, the Standard Vacuum Oil Company explored the West Bengal basin first whose efforts were shared subsequently by the Government of India under the Indo-Stanvac Petroleum Project. The project however, did not succeed, although it produced valuable data which was extremely useful for further projects. Till May 1976, crude in commercial quantities was produced only in Assam and Gujarat. The Bombay High Oil-fields, 686 square kilometres in area, were commissioned in 1976. Currently, the average rate of production from these oil-fields is 1,20,000 barrels or 16,000 tonnes of oil per day. The annual production of oil will go upto 12 million tonnes after 1983. This will constitute about 40 per cent of the total production in India.

The account of the Bombay High and the oil production by the Oil and Natural Gas Commission (ONGC) (The Oil and Natural Gas Commission is the only public sector undertaking engaged in exploration of crude oil and natural gas resources in various sedimentary bases of the country both offshore and inland. It was set up by the Government of India in 1956 in order to develop the oil exploration industry in India. The ONGC began drilling for oil in the Bombay High structure in 1973. By the end of January 1979, of the 32 structures drilled, 30 structures were tested and 12 were oil and gas bearing.) therein is given below.

Bombay High (Based on Petrochemicals from Bombay High, Maharashtra Economic Development Council.) : The oil field known as Bombay High covers approxi­mately an area of 686 square kilometres in the Arabian sea, about 200 kilometres north-west of Bombay. Crude Oil and associated gas were discovered in these off-shore fields in 1974 and production from them started in 1976. The fields provide both oil and gas. However, the gas is co-produced with oil and hence it is not a free gas but associated gas. Production or exploration for more production from Bombay High is, however, a difficult task. The offshore oil-exploration technology is extremely complex and, even production and transport problems are formidable. Most of the off-shore oil exploration in the world has been so far carried out in twenty to thirty metres of water. Only recently, attempts were made to dig an exploratory well in 1,500 metres of water. For drilling operations in respect of wells, the drilling rig has to be mounted on a ship. This ship itself is required to be kept dynamically positioned by various control systems, so that it remains exactly over a fixed spot on the ocean floor. Once oil is found, the development of the field involves construction of costly platforms. In the typical conditions of Bombay High, it is possible to have only four wells originating from each platform. From these constructed platforms, the crude has to be transported to a process platform. Here oil and gas are separated, the crude is conditioned and the gas is dried. Both are then sent on shore. A massive processing and pumping platform had to be constructed at Bombay High North for this purpose. This platform, known as BHN is to be equipped with pumping facilities for handling the large quantity of oil and gas before it is transported through the submarine pipeline to the shore terminal at Uran near Bombay. Global tenders had to be invited for construction of this platform, in view of the magnitude of the task involved. The weight of the involved structures itself is 6,250 tonnes and the height of the platform above water upto its helicopter deck is 41 metres. The pile penetration for the platform involved reaching a depth of 91 metres below sea-bed. Another platform called platform F, with comprehensive treatment facilities for oil and gas required construction. The F platform and BHN platform will get connected by a cross-bridge.

The Bombay High indigenous crude has a high wax content in the diesel oil atmospheric residue range. The diesel oil yield gets limited by a property known as “pour point" and the atmospheric residue solidifies at ambient temperatures. The Bombay High crude has a high “pour point “of 29 degrees centigrade while the sea-bed temperature is 24 degrees centigrade and this difference causes the crude to congeal. Special heating arrangements are, therefore, necessary for its handling, storage and transport. A “pour point “depresser is, therefore, required on platform F to reduce the viscosity of crude and prevent it from congealing. The F platform also dehydrates the gas to remove the water mingled with gas. This is necessary to prevent internal damage to the gas pipeline. The proper embedding of submarine pipelines is also, a complicated task. A multipurpose support vessel equipped with fire-fighting and anti­pollution equipment is necessary for maintenance in respect of the platform installations and the submarine pipelines.

The terminal facilities at Uran will provide for the removal of salt content from oft-shore oil. The crude also needs to be stabilised.  The other plant required to be set up is a 'fractionation plant, which will separate the gas into different constituents. This gives a brief idea of what is Bombay High.

The Government of India has, therefore, thought it fit recently to invite interested foreign parties to participate in the exploration work and the development of hydrocarbons in the selected blacks of Bombay High. It has also approved the phase IV development programme of Bombay High. The outlay involved is Rs. 365.4 crores.

Oil : The 686 sq. km. Bombay High Oil field commissioned in 1976 has eleven platforms. Currently, the average rate of production from the oil field is 1,20,000 barrels or 16,000 tonnes of oil per day. The current production of 6 million tonnes per annum was stepped upto 7 million tonnes per annum by January 1981. The annual production will go upto 12 million tonnes from 1983. This will constitute about 40 per cent of the total production in the country.

Naphtha : The crude after processing yields Naphtha. The Naphtha from Bombay High has a high aromatic content in the .range of 22-24 per cent by volume and has about 25 per cent Naphthalene: It is an excellent feedstock for catalytic reforming. The reformate can be used as a high octane component for motor spirit blending or for the production of aromatics. The hjgh aromatic content is considered a serious disadvantage when this is used in fertiliser production or in Naphtha crackers. The cracking of Naphtha yields Olefins. An aromatics complex based on the Aromatic Naphtha proposed by the Bharat Petroleum Corporation Ltd. is sanctioned by the Government of India.

Associated Gas : The associated gas from Bombay High is currently available at the rate of about 2.5 million cubic metres a day. When the oil production will be stabilised at 12 million tonnes per annum after 1983, the availability of associated gas will go up to about 4 million cubic metres per day. The associated gas contains methane, ethane, propane, butane and pentane.

All components of this gas can be used for fertiliser production and power generation. Ethane and propane fractions are used by the petro­chemicals industry. Liquefied Petroleum Gas (LPG) or the commonly known cooking gas is made; up of propane and butane.

Bassein Fields: Various proposals for utilisation of the Bombay High associated gas take into account the availability of gas from Bassein fields also. Oil and gas were recently discovered in North Bassein and South Bassein fields and these fields were commissioned recently. North Bassein field is estimated to produce 2 million tonnes of oil per annum and about one million cubic metres of associated gas per day. South Bassein field is estimated to produce about 21 million cubic metres of free gas per day.

Utilisation of Bombay High Gas : At present some quantity of the associated gas is used by the Rashtriya Chemicals and Fertilizers Corpo­ration and Tata Thermal Power Station at Trombay and the rest is flared up m Bombay High. The quantity used being suboptimal, the associated gas is being literally wasted. Effective plans for its utilisation ought to have been finalised as soon as the Bombay High Oil field produc­tion had started and, the necessary plants should have become operational by now. The Oil and Natural Gas Commission installed a plant at Uran to extract LPG from Bombay High Gas. It started commercial production in 1981-82, and a total of 73,055 MT was produced against a target of 75,334 MT.

The Ministry of Petroleum, Chemicals and Fertilisers set up a Working Group for studying the utilisation of this associated gas. It is reported to have observed that 5 f 5 million cubic metres per day of lean gas would be necessary by 1984-85 to feed the present fertiliser plants at Trombay I, II and V as also the two giant fertiliser plants of 1,350 tpd. ammonia capacity at Thai Vaishet in addition to town gas supply and supply to the textile mills. This requirement obviously cannot be met only from Bombay High, and additional supply of free gas to the tune of 3 million cubic metres a day was considered necessary. About 7 million cubic metres of the combination of free and associated gas would produce 5.5 million cubic metres of lean gas mentioned by the Working Group.

In the meanwhile, a group of private sector petrochemicals manu­facturers in Maharashtra put forward an interim proposal for prevention of the waste of this gas. This proposal was supported by the Government of Maharashtra. The proposal involves cracking of ethane/propane at the mother cracker of the Union Carbide India Ltd. at Trombay, and requires modifications to its existing facilities. This proposal is, however, dependent on the availability of the C2, C3 fractions from the ONGC fractionation plant. The manufacturers also put up proposals for expansion and modernisation of their chemical manufacturing facilities based on the feedstock available from Bombay High.

The Government of Maharashtra set up the Sethna Committee in 1978 to advise it on all aspects of a gas based petrochemicals complex including its location and also to advise on the setting up of the Aromatics complex by Bharat Petroleum Corporation Ltd. based on Aromatic Naphtha. It also made out a case for setting up giant fertiliser plants based on the associated gas in Maharashtra.

The Sethna Committee recommendations included, seating up of the proposed Aromatics complex by the Bharat Petroleum Corporation Ltd. at its existing refinery premises at Mahul near Chembur; setting up of a petrochemicals complex in the joint sector at Usar in Raigad district of Maharashtra; setting up a State level Petrochemicals Corporation; and conditional support to the proposals of existing petrochemicals manufacturers in Trans-Thane Creek and Trombay areas for expansion and modernisation of some of their chemical manufacturing facilities. On the basis of these recommendations the State Government strongly urged the Government of India for the setting up of a petrochemicals complex at Usar.

The Maharashtra State Electricity Board also examined the possibility of utilising the associated gas for power generation and proposed the setting up of big gas turbine units. The total gas requirement for these units is estimated at 1.84 million cubic metres per day. The Government of India has already exempted customs duty fcr import of these sets and also made available rupee facility to finance the foreign exchange compo­nents of these sets. There is, however, no firm commitment from the Government of India regarding supply of associated gas. In the mean­while the Maharashtra State Electricity Board, in the context of current and future heavy shortages of power, is reported to have proposed installation of four more gas turbine units of 60 MW each to tide over future shortages.

The Government of India constituted a Committee in 1979 under the Chairmanship of Dr. T. R. Satischandran, Adviser (Energy), Planning Commission, for studying the allocation of gas for various purposes in detail. The Committee is reported to have recommended that gas should not be used for fuel purposes and, primary use of gas should be as fertiliser feedstock. It estimated that the fertiliser demand in the country would rise rapidly and it would be necessary to set up and com­mission a 1,350 tpd. ammonia capacity fertiliser plant by 1985, along with balanced urea production facilities. It proposed that there should be a total of eleven such units; two at Thal-Vaishet in Maharashtra, three in Gujarat and two each in Rajasthan, Madhya Pradesh and Uttar Pradesh. Its recommendation is for supply of a total quantity of 5 million cubic metres a day of methane and, of this, the supply recommended to Thai and Trombay fertiliser units is of the order of 4.7 million cubic metres a day. This proposal also requires augmentation of Bombay High gas by South Bassein gas.
Present Position : The gas fractionation plant of the ONGC is under implementation. The Government of India has approved the Thal-Vaishet fertiliser project involving an outlay of Rs. 511.34 crores including a foreign exchange component of Rs. 230 crores. The oU exploration activities at Bombay High have been intensified and the World Bank has sanctioned 400 million dollars for this purpose. The Government of India has sanctioned setting up of an Aromatics complex by Bharat Petroleum Corporation Ltd. in Maharashtra. It has also approved setting up of petrochemicals complexes consisting of gas crackers and down­stream units at User near Alibag and Kavas in Gujarat. The Govern­ment has also announced, on the basis of available production of LPG from Mathura and Koyali refineries and from Bombay High associated gas, that about 12 lakh new domestic customers in the country would be given LPG connections beginning from the first quarter of 1981 to March 1982 and that at least 8 lakh new customers would be given connections in subsequent years upto 1984.

Petroleum Refineries : Of the five oil companies engaged in the refining and marketing of Petroleum Products in India, three are in Greater Bombay. Of the three oil companies in the city, the Bharat Petroleum Corporation Ltd. and the Hindustan Petroleum Corporation Ltd., both of which are in the public sector, have their refineries at Trombay. The third oil company, the Indian Oil Corporation Ltd. (IOC), has its registered office, Marketing Division and other establishments in Bombay. This Division is responsible for distribution of petroleum products produced by the four refineries of the IOC and two other public sector refineries at Cochin and Madras. It also handles crude imports as well as import of finished products. The IOC, established in 1960, has four refineries, one each at Gauhati (Assam), Barauni (Bihar), Koyali (Gujarat) and Halda (West Bengal), while its giant refinery at Mathura (U.P.) is under construction. The IOC's participation in the marketing of petroleum products in 1977-78 stood at 61.8 per cent of the sales in India. However, since its refineries are located outside Bombay, detailed account of its operations is not attempted here.

The Bharat Petroleum Corporation and the Hindustan Petroleum Corporation have their giant refineries and other establishments at Trombay. Besides the fuels Refinery, the Hindustan Petroleum has a Lube Refinery at Trombay. The account of the operations of the two corporations is narrated below.

Prior to the resumption of the narration of operations of the two oil companies, it may be noted that the statistics about the petroleum refineries in Bombay as per the Annual Survey of Industries in 1973-74 and 1975-77 are furnished in Table No 11. The statistics include the operations of the companies and their associates in Greater Bombay.

Bharat Petroleum Corporation Ltd (Information supplied by the Bharat Petroleum Corporation (20th April 1982). : The Bharat Petroleum Corporation is now a wholly public sector undertaking of the Government of India with a huge petroleum refinery at Trombay in Bombay. The Bharat Petroleum has acquired complete ownership of the former Burmah Shell Refineries Ltd. with its refineries, in Bombay and commercial interests in India in January 1976. The Bharat Petroleum is the second largest refinery in India with a 5.25 million tonnes per annum capacity and a nationwide marketing organisation. The Company's refinery went on steam. on 30th January 1955 with an initial oil processing capacity of 2.2 million tonnes of Kuwait crude oil per annum.

The oil refining company of the former Burmah Shell Refineries, which was the private sector predecessor of the present Bharat Petroleum Corporation, was set up as a result of the agreement signed by the Govern­ment of India with the Anglo-Saxon Petroleum Company Ltd. (later replaced by the Shell Petroleum Company Ltd.) and the Burmah Oil Company on 3rd November 1952. It was subsequently converted into a public limited company on 26th August 1954. General construction work of the refinery commenced in February 1953 and the crude distillation unit came on stream on 30th January 1955. The refinery at Trombay was formally inaugurated in March 1955.

The important highlights pertaining to Burmah Shell Refinery, signi­ficant as they are from the point of view of the economic history of Bombay, are worth recording (Information supplied by the Burmah Shell Refineries Ltd. in 1974.). These highlights throw a side light on the development of this vital sector of the economy not only of Bombay but also of India. In 1955, the Burmah Shell processed 1.83 million tonnes of crude oil starting with the main bulk refined products. Bitumen was produced for the first time in June 1955. It commenced manufacturing liquid petroleum gas (LPG) and Motor Spirit MT 80 in 1956, and surrendered duty protection on motor spirit as a good gesture towards national interests. The commencement of manufacture of aviation turbine fuel in 1957 was a very important phenomenon in the context of import substitution for the vital source of energy which is so very essential for civil aviation and the Air Force. The company surrendered duty protection on high speed diesel oil, light diesel oil, furnace oil and bitumen in 1959, which was in the interest of the national exchequer. It commenced jute batching oil manufacture in 1961. The exploration of oil in the Ankaleshwar belt was an important event in the development of the national economy. The Burmah Shell commenced processing of Ankale­shwar crude together with Iranian light oil in 1962. The oil refining capacity of this concern was increased in 1963, and it processed 3.75 million tonnes of crude in the year. It commenced refinery gas supply to the Fertilizer Corporation of India and the production' of SBP 55/115 and motor spirit 93 octane in 1965. It further diversified its production by undertaking manufacture of carbon black feedstock, mineral turpentine and SBP 64/69 in 1966, which are important products from the point of view of industrialisation. Its crude throughout crossed the 4 million tonnes mark in that year. This oil refinery further helped the petrochemicals industry in the environs of Bombay by commencing deliveries of Naphtha to the National Organic Chemical Industries Ltd. by road lorries in 1967. It also started supply of hot heavy stock by pipeline to the Tata Thermal Station at Trombay in the year. In the next year it started supplying Naphtha to the National Organic Chemical Industries by pipeline. This facilitated cheaper supply of Naphtha to the petrochemicals industry.

The refinery achieved a refining capability of 5.25 million tonnes per annum in 1969. It achieved the highest fver middle distillate yield of 50.2 per cent weight on crude in conformity with the national interest in 1972. It commenced the processing of Indian Oil Corporation (IOC) crudes and achieved the highest ever refinery intake of 4.48 million tonnes in 1973. It was in 1974 that the Burmah Shell attained a refining capability of 5.5 million tonnes per annum.

Starting with only six major products, over the span of about 20 years, the refinery added 15 other products to its range. These products are required in various vital sectors of the national economy and defence services of the country. The refinery was the first in India to produce aviation turbine fuel, liquefied, petroleum gas (popularly known as Burshane), bulk bitumen, and motor spirit 80 MT which is so very essential for the Indian Army. The yield pattern, it is claimed, had always been in consonance with the national requirements. The total foreign exchange savings, due to this company resulting from crude replacing product imports, amounted to about Rs. 254 crores upto the end of 1973. It also earned foreign exchange, which was so very essential for the national economy, to the extent of about Rs. 28 crores by exporting, some petroleum products from its inception upto the end of 1973.

The Burmah Shell contributed its might towards import substitution and export promotion. In 1969, the refinery pioneered the formation of a Technical Development Committee for Indigenous Materials with a view to developing indigenous manufacture of a wide range of engineering materials, spares, and equipment to replace their imports. Import substitu­tion achieved through this developmental activity saved foreign exchange of the order of Rs. 3 crores per annum to the member industries of the Burmah Shell alone in 1974. Foreign exchange saving to the national economy as a whole was much higher.

The refinery undertook an export promotion programme by exporting some products in 1972, and it was granted an "Export House" status in May 1974. Its exports comprised a wide range of products, for which the refinery acted as a bridge between the Indian manufacturers and its associate oil companies and other traders abroad.

The Burmah Shell Refineries Ltd. was linked with the Burmah Shell Oil Storage and Distributing Company of India Ltd. (Burmah Shell Marketing Company) through common shareholders. The Burmah Shell Refineries functioned as a Service Company to the Marketing Company whose crude it processed for a refining fee, and the entire production of refined products was marketed by the Marketing Company all over the country.

The refinery provided employment to 1,905 persons in 1960; 1,338 persons in 1970 and 1,204 in 1973. The approximate value of its production amounted to Rs. 35 crores in 1960 which increased to Rs. 58 crores in 1970 and to Rs. 1,07 crores in 1973.

The products of the Burmah Shell Refinery in 1974 comprised refinery gas, liquefied petroleum gas (LPG), Naphtha, motor spirits, special boil­ing point spirits, mineral turpentine, aviation turbine fuel, superior kerosene, high speed diesel oil, light diesel oil, fuel oil, jute batching oil, carbon black feedstock, hot heavy stock, bitumen and cutbacks.

Under permits of the Government of India and an agreement with the Indian Oil Company (IOC) the Burmah Shell obtained crude oil by imports from Iran, Iraq and Arabia.

The Burmah Shell Refineries with all its industrial and commercial interests in India was taken over by the Government of India by constituting the Bharat Petroleum Corporation Ltd. in January 1976, The latter is an autonomous commercial corporation under control of the Ministry of Petroleum, Chemicals and Fertilizers, Government of India. The account of its operations is given in the following paragraphs. (Information supplied by the Bharat Petroleum Corporation Ltd., on 20th April 1982)

The company's Refinery under aegis of the Burmah Shell went on stream on 30th January 1955 with an initial processing capacity of 2.2 million tonnes of Kuwait crude per annum. The crude processing capacity has since then been gradually increased to 5.25 million tonnes per annum. However, the maximum crude actually processed in a year was 5.01 million tonnes in 1979.

The refinery has made substantial technological advancements over its lifetime, resulting not only in increased processing capacity and flexibility, but also in improved product yields as well as reduced fuel consumption and loss. There is, as a consequence, considerable techno­logical flexibility, which enables this refinery to process a variety of Middle Eastern and indigenous crudes. In 1980-81, twelve different crudes were processed which included Sirri crude from Iran, El Morgan from Egypt and Romashkinskaya from Russia for the first time.

The refinery was also the first to process offshore Bombay High crude in 1976, and the share of Bombay High crude in the crude mix has risen from 61 per cent (2.87 million tonnes) in 1978-79 to 74 per cent (3.60 million tonnes) in 1980-81.

Besides Trombay, the Bharat Petroleum Corporation has six other main installations in India, namely, Kandla, Cochin, Madras, Calcutta, Shakurbasti (Delhi) and Bayappanahalli (Bangalore). The last two installations are inland, while the rest of them are ports. The Corporation operates 52 depots in various parts of the country. The company operates 150 tank-lorries, while it has licensed 987 tank-lorries owned by contractors. It has 3,315 retail outlets in various parts of the country. It employed 6,257 persons in September 1981.

The statistics of volume of trade and financial results of the BPC (Bharat Petroleum Corporation) are shown below. These are followed by an analysis of the highlights of the working of this corporation as reported by it, which has a vital role to play in the economy not only of Bombay but also of the country.

Volume of Trade

Year

Million Tonnes

1976

3.63

1977-78*

5.23

1978-79

4.60

1979-80

4.97

1980-81

5.29

(*15 months)

Finacial Results

 

(Rupees in crores)

 

1979-80

1980-81

Profit for the year before depreciation

32.53

35.62

Depreciation

7.71

12.51

Profit before tax

24.82

23.11

Provision for taxation

15.05

12.67

Profit after tax

9.77

10.44

(A) Refining Division : (i) Safety Record : In August 1975, the refinery completed 7 million manhours without a lost-time accident, which is believed to be a world record for petroleum refineries. After the  Government take-over, the refinery has again  completed 4 million manhours without a lost-time accident on 1st January 1981.

(ii) Environmental Improvement: As a result of the increasing substi­tution of high sulphur fuel by low sulphur fuel and reduction in per cent fuel consumption, the average sulphur dioxide emission level in the refinery has been reduced to half over the last four years.

{iii) Indigenous Development : In 1970 the refinery pioneered the formation of a Technical Development Committee for Indigenous Materials for the petroleum, petrochemicals and fertilizer industries with a view to developing indigenous manufacture of a wide range of engineering materials, spares, equipment, etc. to replace their imports. Import substitution achieved through this development activity is presently saving foreign exchange to the extent of Rs. 6 crores per annum to the member industries alone. The savings to the national economy as a result of non-members benefiting from this development are much higher.

(B) Marketing : The year 1980-81 was yet another one of sustained growth. The total sales of the Corporation increased by 6.4 per cent to 5.29 million tonnes as compared to 4.97 million tonnes in the previous year. The turnover increased to Rs. 12,14.13 crores during the year 1980-81, as against Rs. 9,36.18 crores in the previous year. Its foreign exchange earnings through international aviation and bunker sales at Rs. 86.08 crores were higher by Rs. 13.09 crores as compared to the previous year.

As in the past, the Corporation continued its efforts towards improving the distribution of essential commodities in the rural areas. With this objective in mind, five Multi-Purpose Distribution Centres and three Farm Fuel Outlets were commissioned in 1980-81 raising their number to 74 and 34, respectively.

Bharat Petroleum has planned a number of major expansion and diversification projects with an estimated investment of about Rs. 350 crores over the next five years (1981-82to 1986-87). Some of the plan projects are as given below :—

  1. Debottlenecking of distiller and additional secondary processing facilities : This project will increase the BPCL refinery capacity to 6 million tonnes per annum (for processing any combination of Bombay High and Middle East crudes), and will increase the middle distillate production by over half a million tonnes. Estimated total outlay of this project is about Rs. 134 crores, and it is scheduled for completion by October 1984.
  2. Marketing of LPG : The Bharat Petroleum Corporation has plans to significantly expand marketing of LPG in view of the additional quantities of LPG available from Bombay High, Mathura Refinery and Koyali Refinery expansion. Under this project, a new LPG Filling Plant with a filling capacity of 75,000 tonnes per annum on a 2-shift basis was commissioned in its refinery at Bombay in 1979-80. A bottling plant of 24,000 tonnes per annum capacity has been commissioned at Delhi. A total of 8.7 lakh new domestic consumers will be enrolled by September 1984. A bottling plant with an annual capacity of 24,000 tonnes will also be commissioned at Coimbatore by mid-1983. The estimated outlay on this scheme is about Rs. 34 crores.
  3. Production of Aromatics : A project for the manufacture of 80,000 tonnes of Benzene and 21,000 tonnes of Toluene utilising 207,000 tonnes per annum of high aromatic Naphtha from Bombay High crude is under implementation. This Rs. 20 crore project will help in reducing the shortfall of Benzene and Toluene in the country, which are of vital importance for the growth of the petrochemicals industry. This project will help saving of foreign exchange to the national exchequer.
  4. Additional Tankage : To take care of the growth and to provide adequate storage facilities at various locations in the country, the corporation has planned to increase the tankage for crude and products investing about Rs. 50 crores in the next three to four years.
  5. Bcmbay-Manmad Product Pipeline : The Corporation has plans to lay a 245 km. pipeline from Bombay to Manmad to transport major products like diesel, kerosene and petrol, with an investment of approximately Rs. 45 crores. This will ensure an easy, quick and economic flow of petroleum products to the upcountry.
  6. Sulphur Extraction Plant for Pollution Control: A plant is planned to be installed in the refinery to convert sulphur dioxide into sulphur, thus reducing S02 emission and thereby minimising atmos­pheric pollution in the Trombay-Chembur area. The estimated outlay for this project is Rs. 4.5 crores. It will not only reduce pollution, but will also ensure production of elementary sulphur which is not available in the mineral form in India. Production of sulphur will thus save foreign exchange.
  7. Aviation Fuel Hydrant System at Palam, Delhi: To cater to the fuelling of aircraft at the proposed new international terminal complex at Palam Airport, the BPCL plans to design and construct a modern aviation fuel hydrant system with an investment of about Rs. 25 crores.

Hindustan Petroleum Corporation (The account is based on published brochures supplied by the Hindustan Petroleum Corporation (May 1982).) : The Hindustan Petroleum Corpora­tion Limited was formed as a public sector enterprise by nationalisa­tion of the then ESSO Company along with its refinery at Bombay and commercial interests in India in 1974. The Corporation was constituted into a commercial autonomous corporation under control of the Ministry of Petroleum, Chemicals and Fertilizers, Government of India. Later on in December 1976, the Caltex company's operations in India were taken over by the Government, and in May 1978, these were amalgamated with this Corporation. In 1979, Kosangas Company, engaged in the activities of bottling, distribution and marketing of liquefied petroleum gas was acquired and merged with Hindustan Petroleum Corporation. The combined resources, facilities and expertise of the enlarged corporation are a source of great strength for providing better service to consumers all over the country.

The Hindustan Petroleum Corporation has two oil refineries, one in Bombay and the other in Visakhapatham. The Bombay refinery has a capacity of 3.5 million tonnes per year. The capacity of the Visakh refinery is 1.5 million tonnes per annum. HPC's lubricating oil refinery at Bombay is capable of manufacturing about 200,000 tonnes of lube oil base stocks and other products annually.

Growth : At the time of the Government take-over, the ESSO were marketing about 2.5 million tonnes of petroleum products and the Caltex were marketing about 1 million tonnes of petroleum products. The total volume of petroleum products marketed by these two companies through­out the country was of the order of 3.5 million tonnes. As against this, the Corporation had set a target of marketing 6.827 million tonnes of petroleum products during the year 1983-84 which constituted about 92 per cent increase in volume since the Government take-over. The actual sales by the Corporation amounted to 5.59 million tonnes in 1980-81 as against 5.15 million tonnes in 1979-80. The rate of growth over a year was thus 8.4 per cent which appears to be quite good. The present share of HPCL in all India marketing of petroleum products in 1983-84 is of the order of 18.4 per cent and it is expected that the same will reach 20 per cent in the next few years.

In 1980-81, the Corporation completed seven years after the Government take-over of the erstwhile ESSO organisation's operating in India in 1974. The rate of growth of the HPC over a period of seven years was about 70 per cent. By any standards this is a spectacular rate of growth. To achieve these targets the network of the field sales organisations, storage capacity of the products at the terminals and depots and transport network for distribution had to be strengthened. The Corporation has also opened a large number of retail outlets largely in rural areas and on highways to provide better service to rural population. The Corporation has formulated a detailed plan to achieve a sales target of about 8 million tonnes by the end of the Sixth Plan period (1984-85), and an all out effort will be made to achieve the same.

The LPG produced by the erstwhile ESSO and Caltex companies was handled through their concessionaires who owned the LPG bottling plants, LPG cylinders and had organised a network of distribution and marketing. In May 1979, Government took over the Kosangas company, the major concessionaires of the erstwhile ESSO Co. and also took over the management of Parel Investment and Trading Co. and Domestic Gas Pvt. Ltd., the major concessionaires of the erstwhile Caltex Company.

At the commencement of 1980-81, the total production of LPG in the country was of the order of 5 lakh tonnes. During the next two years this production has almost doubled; the principal sources being Bombay High Associated Gas, Mathura Refinery, Koyali Refinery, etc. As a result of this availability of gas, the three major oil companies have already launched a massive enrolment programme of providing LPG to a large number of consumers all over the country. The Corporation enrolled over one lakh consumers during the latter half of 1980-81 and had hoped to enrol further 1.4 lakh consumers by the end of March 1982. Thereafter, it was to try to enrol about 2 lakh consumers each year. The total number of consumers planned to be serviced by the Corporation at the end of 1982, was expected to be 11 lakhs. To achieve this target, three new bottling plants of 25,000 tonnes capacity each, located at Bombay, Bangalore and Nagpur have been commissioned. A new bottling plant of 25,000 tonnes capacity is under construction at Hyderabad and the capacity of the Indore plant is being increased to 25,000 tonnes. At present the Corporation has 15 bottling plants spread all over the country.

A large investment has been made in tank-lorries, tank-wagons, LPG cylinders, etc. so as to achieve the new enrolment programme. The increased use of LPG would result in a corresponding saving in consump­tion of kerosene and to that extent the imports of kerosene would be minimised.

The growth in the Bombay refineries since the Government take-over is claimed to be quite satisfactory. By debottlenecking the secondary pro­cessing facilities it has been possible to increase the throughput at Bombay Fuels Refinery by one million tonnes. A number of other modifications such as the installation of a desalter, water cooling system, etc. are under implementation so as to improve the overall performance of the Bombay Fuels Refinery. The capacity of the Lube Refinery is being expanded.

So far as the Fuels Refinery at Visakh is concerned, a major reconstruction and modernisation programme has been taken so that it can continue to operate efficiently and economically.

Projects completed after nationalisation :

  1. Vacuum Pipestill / Catalytic Cracker Debottlenecking Facilities :. The project, costing Rs. 4.7 crores, was commissioned at Bombay refinery on January 18, 1978, resulting in increased production of LPG and higher quantities of light and middle distillates. The entire project was designed, engineered and commissioned by HPC personnel. This has resulted in increased production of LPG (16,000 tonnes) as also light and middle distillates contributing to substantial foreign exchange savings of about Rs. 1.2 crores per annum.

  2. Strategic Crude Tankage : Four large-sized tanks having a total storage capacity of 315,000 tonnes were commissioned in 1979 in Bombay, at an investment of Rs. 7.8 crores. Another large tank was commissioned at Visakh in November 1980 by investing about Rs. 2.1 crores. This was to increase strategic crude storage to tide over possible interruptions during emergencies.

  3. Hindustan Petroleum Corporation and Bharat Petroleum Corporation Integration Projects : To maximise the processing of Bombay High Crude at Bharat Petroleum, various facilities were commissioned in 1978-79. This improved the yield pattern at both the refineries and also assisted in optimum utilisation of various downstream facilities available at these refineries.
  4. The Corporation has commissioned three new LPG bottling plants at Bombay, Bangalore and Nagpur each with a capacity of 25,000 tonnes per year. A large number of LPG cylinders, tank-wagons and tank-trucks have been procured, the total investment being Rs. 38 crores.
  5. A 18-kilometre pipeline of eight-inch diameter has been laid between the Bombay Refinery and Santacruz Airport for transportation of AIF, eliminating truck transport and relieving traffic congestion as also reducing atmospheric pollution, the total sanctioned investment being Rs. 2 crores. It will also avoid product contamination and product losses on account of transport in lorries.

Operations : Refineries : The Bombay Fuels Refinery achieved a crude throughput of 3.115 million tonnes during the year 1980-81 despite there being a pipe still turn-around of 35 days. In addition to the crude, 86,500 tonnes of waxy distillates produced by the Bharat Petroleum Corporation from Bombay High (BH) crude were reprocessed by the refinery as against 62.600 tonnes in 1979-80. The refinery also achieved the highest ever production in motor spirit, high speed diesel oil and industrial diesel oil. The total distillates (including Lubes) recovery was at 69.2 weight per cent.

The Visakh Refinery had achieved a throughput of 1.319 million tonnes in spite of processing twelve different types of crudes, as against the highest throughput of 1.329 million tonnes in 1978-79. Production of LPG was at an all time high since the starting of the refinery. The total distillates recovery was at 70.1 weight per cent in 1980-81 as against 68.8 per cent in 1979-80.

The Lube Refinery at Bombay achieved a. production of 180,000 tonnes consisting of Neutrals Lube Oil Base Stocks and Transformer Oil Base Stocks during 1980-81, despite a VPS shutdown of 68 days, as against 193,000 tonnes in 1979-80. Crude affreightment operations for the HPC/ BPC, Bombay Refineries were carried out satisfactorily during 1980-81. A total of 5.44 million tonnes of imported etude was transported in 1980-81 as against 5.1 million tonnes in 1979-80. Bombay High crude was also transported to Vadinar on behalf of Indian Oil Corporation.

Marketing : The market sales of petroleum products at 5.592 million tonnes in 1980-81 show an increase of 434,000 tonnes as against 5.158 million tonnes of 1979-80. The industry sales of petroleum products showed an increase of 3 per cent over the consumption of 1979-80. However, the Corporation was able to maintain a growth of 8.4 per cent in 1980-81 over the previous year's figures. The sale during 1983-84 were 6.49 million tonnes.

LPG Marketing : In accordance with Government's policy, the Corpo­ration has drawn up plans for rationalising the LPG distributorships, and all sub-dealers in the erstwhile concessionaires who are found suitable are being appointed as direct dealers of the Corporation for the distribu­tion of LPG. Consequent upon the availability of LPG from Bombay High and other sources, the oil companies took up, during 1980-81 a massive programme of providing new LPG connections to about one million consumers. The share of the Corporation in this was about 25 per cent.

Major Projects under Implementation : (a) Lube Refinery Expansion : This project envisages the expansion of the capacity of the Lube Refinery at Bombay by 74,000 MT of high viscosity index Lubes at a cost of Rs. 14.3 crores. It was to be commissioned in June 1983 with an investment of Rs. 17 crores. The project is particularly important as it would go a long way in meeting the increased requirements of lube oil, and will save the country Rs. 15 crores in foreign exchange per annum.

(b) Visakh Refinery Expansion : The all India demand estimates for petroleum products in the 80s indicate that the country will have a deficit of middle distillates of the order of eight million tonnes by 1987-88. This calls for urgent action in providing additional crude processing capacity in the country, especially in the southern region where the deficit is much more pronounced. The proposal to increase the capacity of Visakh refinery from 1.5 million tonnes to 4.5 million tonnes is an important effort in the direction of self-sufficiency. The expansion is so designed that it can process upto 3.00 million tonnes per year of Bombay High crude. The project was scheduled for completion in 1984-85, and the total cost is now estimated at about Rs. 119 crores. The value of petroleum products in foreign exchange will be to the tune of about Rs. 134 crores per annum after completion of the project.

(c) Bombay-Pune Pipeline : The 158 km. product pipeline from Bombay to Pune, estimated to cost Rs. 56 crores, will provide considerable economic advantage over an alternative method of transporting products by rail. The proposed pipeline, on which work is already in progress, will be an important landmark in the efforts to transport petroleum products to regions south of Bombay.

(d)Sulphur Recovery Projects: The Chembur area is known for its high level of atmospheric pollution. The Corporation sharing the concern of the Government and the people for environmental conservation, has taken up a project to reduce sulphur dioxide emissions from the Bombay refineries. The sulphur recovery project, with a current estimate of Rs. 4 crores is under implementation and is expected to be completed by 1983. In addition to containing sulphur dioxide emissions, this project will also result in the production of sulphur of the order of 4,000 metric tonnes per annum. The sulphur to be recovered from the hydrogen sulphide rich streams at HPC's Bombay Refinery would save foreign exchange to the tune of over Rs. 22 lakhs per annum.

There are also a number of comparatively smaller projects such as replacement of crude furnace, increasing tankage capacities at the refinery and in terminals which are under implementation.

Major Projects under consideration: (a) Expansion of Bombay Refinery : To utilise the increased production of crude oil from Bombay High, the Corporation has submitted a proposal to the Government for the expansion of the Bombay Fuels Refinery by two million tonnes. The feasibility report of this project envisages that it should be possible to complete this project without secondary processing facilities in about 30-33 months, with an investment of approximately Rs. 45 crores. The expansion is scheduled for completion in April 1985.

(b) Crude Oil Discharge Pipeline at Visakh : The capacity of the Visakh refinery is being increased from 1.5 to 4.5 million tonnes. This refinery has been designed to use both imported and Bombay High crude which will be transported by LR tankers. To avoid lighterage operations and reduce crude freight costs, it is proposed that an oil jetty be established at the Visakh outer harbour and a new crude oil discharge pipeline be constructed so that crude oil can be pumped directly from LR tankers to the refinery. While the construction of the oil jetty at the outer harbour is being taken care of by the Visakh Port Trust, the cost of crude oil discharge pipeline which is currently envisaged at about Rs. 14 crores will be on HPC's account. The project is scheduled for completion by September 1985.

Among the new major projects which are under consideration of the Corporation and for which investment proposals are being formulated for the consideration of the Government are as under :—

  1. Manufacture of Bright Stocks in the Lube Refinery at Bombay;
  2. Increasing the production of Hexane at Bombay Fuels Refinery; and
  3. Some downstream projects like recovery of propylene.

The Corporation undertook a study of a number of expansion and diversification projects with a view to meet the requirements of the country and minimise the need to import petroleum products. These are under consideration of the Corporation and the Government.

Energy Conservation Programme : The spiralling cost of energy and restricted availability of oil have made energy conservation a national priority, whether it be in industry, transportation or domestic consump­tion. Over the last few years, several steps have been taken at the two operating refineries at Bombay and Visakh to improve energy productivity. This has been achieved by setting up " energy conservation cells " which continuously monitor the scope and further energy saving measures through " energy audit" exercises. The action plan has been drawn up under the following two broad heads :—

(1) Energy conservation through operational improvement.
(2) Energy conservation through investment in capital projects.

Operational improvement by its very nature is a continuing activity, to keep the refineries at its peak efficiency and benefits start flowing immediately on implementation of certain actions. Examples of some of the programmes implemented in this category are :

(i) Combustion efficiency-monitoring of furnaces.
(ii) Monitoring of preheat exchanger systems for optimum utilisation of all available beat.
(iii) Utilities monitoring through steam leak surveys and prompt remedial action; efficient maintenance of steam traps etc.  
(iv) Corbelling on furnaces.
(v) Replacing of gland packings of all hydrocarbon pumps with mechanical seals.

Capital projects for energy conservation on the other hand, involve substantial investment and sometime lag for benefits to accrue, but their savings potential may be quite considerable. Some of the projects taken up by the refineries under this head are:

(i) Outboard Convection Bank for crude furnace at Bombay Refinery.
(ii) Crude Preheat Exchangers.
(iii) Crude Desalters at both refineries.
(iv) Replacement of old furnaces and boilers with new ones for higher efficiencies to meet international standards of efficiency.

A careful energy accounting or "audit" for each of the refining processes is planned to be an important and continuing phase of the Corporation's activity for identifying further areas of energy conservation. It is also the endeavour of the Corporation to optimise energy utilisation at the refineries since, apart from resulting corporate benefits, energy conservation is a national priority.

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ELECTRICAL MACHINERY, APPARATUS AND APPLIANCES

Consistent with the increasing demand for electric power and expand­ing electrification the demand for electrical equipment of various types, such as generators, transformers, switchgears, transmission line towers, ensulators, electric motors, etc. gathered momentum. The growth, of this industry was a natural outcome of the tremendous efforts of the country towards self-reliance and import substitution. It is now one of the most important industries which has a significant role to play in shaping the industrial and agrarian economy of the country, as also the destiny of the vast Indian multitudes. Electrical machinery and appliances have contributed not only towards achieving comfort and enrichment of individual life of the people but also towards enrichment of the industry and the agrarian economy of India.

The expansion of this industry is not confined to the private sector. The public sector has also contributed to the basic growth of the heavy electricals industry in India. Though there is no public sector project in this industry in Bombay, the private sector industry in the city grew very rapidly on account of the development of public sector projects elsewhere in the country.

The light electrical industry, manufacturing electric lamps, fans, radio sets, television sets, meters, capacitors, condensers and a wide range of electrical appliances progressed rapidly since the inception of this industry in Bombay. The requirements of equipment for generating stations was initially met through imports. In order to restrict inports and achieve self-reliance, manufacturing facilities for large turbines and generators were established indigenously. Facilities for indigenous manufacturing of important accessories like boilers, feed water pumps, electrostatic precipitators, etc. were established in the public as well as private sectors. The private sector was also permitted by the Government to manufacture industrial turbo-sets upto 300 K.W. The entire demand for generating equipment excepting some hydro-electric generators is progressively met from mdigenous sources. Even generators for nuclear power stations are now being supplied by indigenous manufacturers. Development work on 500 M.W. turbo-generators has already been taken up in hand to ensure that the demand for turbo-generators with higher unit ratings would be met indigenously during the Sixth Five-Year Plan. The demand for industrial turbo-sets used in textile, cement and sugar industries is also met from indigenous sources now. (Indian Electricals Manufacturers Association, Directory, 1974.)

Since electrical machinery and apparatus manufacturing is a very important industry of Bombay it may be of immense interest to give its account at the microlevel.

The Crompton Greaves Limited established in 1937 is one of the pioneers in the electrical machinery and appliances industry not only of Bombay but also of India. It has foui factories in Bombay, and it manufactures a very wide range of articles, such as industrial motors, fractional horsepower motors, control gears, electrical transformers, alternators, switchgears, instrument transformers, tap changers, switch­boards, lamps, tubes, carbon and float switches, fuse switches, and a number of other articles. The Company has a recognised Export House and has a full-fledged International Division with a network of conces­sionaires and dealers in many countries.

The Larsen and Toubro established in 1938, manufactures electrical switchgears and other equipment and electronic controls. The Siemens India, established in 1957, has factories at Worli and Andheri in Bombay, besides, four units elsewhere. It is also one of the pioneering concerns in this industry manufacturing switchgears, railway signalling relays, switch­boards, electric motors, electro-medical equipment, railway signalling equipment and instrumentation equipment. The Ralliwolf Ltd. (1958) with a factory at Mulund is known for the production of special purpose electric motors and electric tools. The National Electrical Industries, established in 1945, produces electric motors upto 1000 H. P.', motorised grinders, polishers, and monoblock pumps and other apparatus. The Industrial Meters Pvt. Ltd. with factories at Kandivli and Lower Parel is a manufacturer of transformers and other electrical machinery. It was incorporated in Bombay in 1961. The Hindustan Klockners Switchgear Ltd., established in 1957, has a plant at Borivli which manufactures various types of starters, push button stations, limit switches, remote control devices, and a range of electrical machinery. The Hindustan Brown Bovory (1949) with a factory at Goregaon, the Macneill and Magor Ltd. (1949), the Kir on Industries (1951)with a plantat Mazgaon and the Morarji Dorman Smith Ltd. incorporated in 1961 (plant at Worli) are the manufacturers of electrical machinery and various types of equipment in Bombay. Then there is the Guest Keen William, incorporated in 1931, with two units at Bhandup which produces electrical steel stampings, laminations, preci­sion pressed metal components, and other articles which are essential for generation and distribution of electric power. It meets the increasing demand of the electrical industry in Bombay as in other parts of the country. The Otis Elevators Co. (India) was incorporated in 1953, and has a factory at Kandivli which manufactures lifts of various types and escalators. These are highly in demand at present. There are many other factories in Bombay, though it may not possible to mention them all.

The growth of this industry dates back to 1937. It received tremendous stimulus in the post-Independence period. The stimulus was provided partly by the expansion of rural electrification and partly by the rise in demand by other industries and consumers. The industry in Bombay as in India made a steady progress with only short-lived aberrations.

It may be useful to analyse the principal characteristics of the industry in Bombay as per the Annual Survey of Industries of 1975-77 and to compare it with the industry in Maharashtra. The industry in Bombay comprised 454 factories which formed 71.99 per cent of units in the State. It provided employment to 37,277 persons or 63.86 per cent of the employment in the State. The capital invested in the factories in Bombay was to the tune of Rs. 1,43,58 lakhs or 60.82 per cent of that in Maharashtra. The output of electrical machinery, apparatus and appliances in Bomaby was valued at Rs. 2,74,99 lakhs or 65.40 per cent of the production in Maharashtra. The value added on manufacture was as high as Rs. 68,90 lakhs or 65.87 per cent of that in Maharashtra.

It can be deduced from this analysis that nearly two-thirds of the electrical machinery, apparatus and appliances industry in Maharashtra is concentrated in Bombay alone. The average employment per factory was about 82.

This industry ranked third in Bombay as regards invested capital and value added on manufacture, and fourth as regards value of output.

The account of some of the segments of the industry is given below.

ELECTRICAL INDUSTRIAL MACHINERY

The Annual Survey of Industries has grouped together the various segments of this industry, such as, electrical motors, generators, transformers, electric magnetic clutches, and brakers, etc. As per the Survey of 1973-74 and 1975-77, there were 230 and 167 registered factories in Bombay, respectively in the years referred to. The total employment in the industry which stood at 22,831 inclusive of 17,099 workers in 1973-74 declined to 18,968 inclusive of 13,350 workers in 1975-77. This decline appears to be commensurate with the decline in number of factories. The position as regards capital of the industry is given below. The figures represent annual averages in the respective survey periods:

Item

1973-74

1975-77

 

(Rs.in lakhs)

Fixed capital

23,90.88

30,64.55

Working capital

35,17.67

39,30.72

Capital invested

63,57.68

82,01.60

Outstanding loans

36,99.94

31,23.00

The position of capital shows that in spite of fall in number of factories and employment, there was a conspicuous rise in capital. It can therefore, be deduced that only the small marginal units might have wounded up, while some units might have increased their capital investment.

Despite the fall in employment, there was a rise in total emoluments fromRs. 17,58.05 lakhs in 1973-74 to Rs.19,81.40 lakhs in 1975-77. The factories consumed fuel worth Rs. 1,27.97 lakhs in 1973-74 and Rs. 1,67.78 lakhs in 1975-77. The factories worked for 56,72,165 man-days per annum in 1975-77 period. The raw material consumption of the factories declined from Rs. 82,31.05 lakhs to Rs. 74,01.08 lakhs over the years under study. The other inputs of the factories in 1975-77 were of the order of Rs. 33,86.60 lakhs. The value of total inputs increased from Rs. 91,75.79 lakhs in 1973-74 to Rs. 109,55.46 lakhs per annum in 1975-77. It can safely be said that there was no real decline in the industry in this period.

The value of plant and machinery also increased from Rs.19,58.99 lakhs to Rs.24,66.84 lakhs in the period under  study.

The position of output and production of the industry in Bombay is given below :—

(Rs. in lakhs)

Item

1973-74

1975-77

Value of products

   1,30,64.47

1,29,47.49

Other output

N.A.

31,60.40

Total output

  1,33,63.74

1,61,07.89

Depreciation

2,66.34

2,94.21

Value added on manufacture

39,21.60

48,58.21

It can safely be deduced that the total output and value added showed a conspicuous rise despite the fall in employment and factories. The marginal and small units might have been forced to close down, while those efficiently managed must have expanded.

The factory payments in the industry were with Rs. 4,79.88 lakhs and the income was computed at Rs. 43,78.33 per annum in 1975-77.

The higher ratio of total output to total inputs shows the high profi­tability in this industry in Bombay. The value added was about 21 per cent of the total inputs in the industry. It also shows the satisfactory position of the industry. It is also borne out by observations that the electrical industrial machinery is a growing industry. Some major industries including cotton textile, even some of the engineering industries, went through periods of stagnation. But the electrical industry always maintained a pace of growth despite short-lived aberrations. The products of the industry enjoy a ready market in the country, while the quantum of exports is also increasing progressively. Many of the products of the Bombay industry are comparable to international standards, and have found an acceptance in many countries.

The account of the various groups of this industry is given below.

ELECTRIC MOTORS

Manufacture of electric motors is an important segment of the electrical machinery industry of Bombay. The phenomenal growth of this industry is directly related to growth of industrialisation and improvement in agrarian technique in the country. The balanced industrial and agricul­tural development in the country depends upon a reliable source of motive power meeting the characteristics required by the driven equipment. The electric motor industry caters to the demand from diverse industries, such as textile, sugar, chemicals, mining, cement, etc., which require electric motors for diverse functions. Agrarian progress on account of rising irrigation facilities has directly increased the demand from agriculturists who are now found to install motor pump-sets in increasing number. The use of various gadgets relieving the hard manual work is increasing the demand for general purpose motors. The manu­facture of sophisticated machine tools required special purpose motors including servo motors working to close tolerances and having charact­eristics to meet the requirements of sophisticated and closely controlled high output machine tools.

The electric motors industry in Bomaby meets the general and special requirements, and the manufacturing range covers motors from 0.75 K.W. to 5,000 K.W. for D.C. machines and upto 10,000 K.W. for A.C. machines. Electric motors are manufactured also in various insulation classes, enclosures, mountings, and for normal or heavy duty industrial applications.

The history of electric motors industry in India dates back to the establishment of a firm at Coimbtore before the Second World War. A Bombay firm next entered the line. Two more units in the country were started during the war. Bombay provided a congenial home to this industry in the post-Independence period. A number of concerns, some of them with foreign collaboration, undertook manufacturing electric motors in Bombay.

The industry was granted tariff protection for the first time in 1948, and the Tariff Board (later Tariff Commission) held four enquiries in regard to continuance of protection. The industry enjoyed tariff protection for a considerable time. In 1961-62 there were five large-scale units in Maharashtra, while there were several small-scale units in Bombay. (Ibid.)  (Handbook of Commercial Information, 1963.)

The industry requires mainly pig iron, steel, silicon steel, stampings, copper wires, aluminium ingots, insulating materials and ball bearings as raw materials. The imported components are now progressively substituted by indigenous ones.

The Crompton Greaves Ltd. established in 1937 is one of the largest manufacturers of industrial electrical motors, fractional horsepower motors and a wide range of electrical machinery. It has four plants in Bombay at Prabhadevi, Worli, Kanjur Marg and Bhandup. It has an installed capacity to manufacture 8.40 lakh electrical motors, the actual production in a latest year being 6.99 lakhs. (A State-wise Pictures of Large Scale Industrial Activity, 1981.) The Siemens India Ltd., established in 1957 has factories at Worli (near Television Centre) and Andheri, besides others at Kalwe, Nasik, Calcutta and Bangalore. It manufactures electric motors, and a wide range of electrical machinery including switch-gears, railway signalling equipment, electro-medical equipment and instru­mentation equipment. It has an installed capacity to manufacture fifteen thousand electric motors per year. The Ralliwolf Ltd., with a factory at Mulund manufactures special purpose electric motors, besides a number of electric tools. It has an installed capacity to produce 12,200 motors, the actual production in a latest year being 11,968 motors. (Ibid). The National Electrical Industries, established in 1945 has a plant at Lalbaug, besides another factory at Pune. It manufactures electric motors upto 1,000 H.P. besides motorised bench grinders, polishers, pedestal grinders and mono-block pumps. (IEMA (Indian Electrical Manufacturers' Association Directory), 1974).   There are many other concerns engaged in this industry in Bombay.

ELECTRIC TRANSFORMERS

Transfomers perform an essential function in distributing electricity by stepping up the voltage at generating stations and stepping it down at consuming points. The origin of the electric transformer manufacturing industry in India can be traced back to 1936-37 when the Government Electric Factory, Bangalore, a State Government enterprise, started manufacturing transformers. At the beginning of the Second World War this was the only unit in the country. Between 1941 and 1943 three more firms commenced production, one each in Bombay, Calcutta and Lahore. After Partition of India in 1947, the Lahore unit was shifted to Bombay. In 1951-52, there were two units in Bombay out of the seven factories in India. Their number increased to five by the end of the Second Five Year Plan. (Handbook of Commercial Information, 1963).

The former Planning Department of the Government of India constituted an Electrical Machinery and Equipment Panel in 1945, which encouraged the growth of transformer manufacturing industry. All kinds of help was extended to entrepreneurs with an objective to encourage the growth of the indigenous industry.

The transformer industry made significant progress during the sixties and seventies. The expanding electrical network required a large number of power and distribution transformers in various ratings and voltage classes. Now the demand is met in full from indigenous sources. The Bombay industry is said to be operating on sound foundations. The transformers upto 220 KV and rating upto 250 MVA was initially, manufactured indigenously. The manufacturing range has now been extended to voltage ratings upto 400 KV to cater to the needs of 400 KV transmission line systems.

The demand for special type of transformers such as booster and traction transformers for railway electrification, non-inflammable and dry type transformers for mining, furnace transformers for metallurgical industry, rectifier transformers for chemical and electro-metallurgical industries and welding transformers are now being manufactured. The quality of the transformers manufactured has found widespread acceptance in international markets. Hence the export of transformers is increasing rapidly from year to year. (Indian Electrical Manufacturers, Association Directory, 1974.)

The Crompton Greaves, established in 1937, has four plants in Bombay, viz., at Kanjur Marg, Bhandup, Prabhadevi and Worli. It is a renowned manufacturer of transformers of various kinds, and has an installed capacity to manufacture 30 lakhs of transformers per annum. The Industrial Meters Pvt. Ltd., established in 1961 manufacturer's transformers and other electrical machinery. It has two factories in Bombay, at Kandivli and Lower Parel. The National Electrical Industries Ltd. is an old company established in 1945. It has a factory at Lalbaug and another one in Pune. It Produces transformers with a very high voltage capacity. There are many other manufacturers in Bombay in this line of industry, though it may not be possible to mention them all in this brief review.

The raw material essential for production of transformers includes hot rolled and cold rolled silicon steel sheets, copper strips and wire, porecelain bushings, cooling tubes, mild steel sheets, transformer oil, paints and a wide range of insulating material and fasteners. Though most of these items are indigenously available, a few components are imported.

SWITCHGEAR

Switchgear is a generic term which covers all apparatus for controlling and regulatmg the supply of electricity and ensuring its distribution and use. It ranges from the several types of switches employed in making and breaking electrical circuits under normal conditions to fuses and circuit breakers which operate under normal loads for operating the power circuit. Circuit breakers are safety devices and are usually of two types, air breakers and oil immersed. Fuses are used as circuit breakers in low voltage electric circuits.

Manufacture of switchgear and control-gear developed only during the Second Five-Year Plan. The expansion of electrical network and inter-connection between the State grids and generating stations required reliable protective equipment giving protection within stipulated graded timings and capable of clearing faults of increasing proportions. Instal­lation of high tension transmission voltages demanded protective equip­ment suitable for operating at those high tension voltages. The manu­facturing range of circuit breakers is being extended to 400 KV. The industry also offers auxiliary switchgear and protective equipment such as isolators, protective relays, instrument transformers, etc.

The industry also manufactures industrial type switches and switch­boards for low tension distribution and protection, motor starters, motor control centres and process control equipment.

Bombay provided a congenial home to this industry. The Siemens India Ltd., incorporated in 1957, is a pioneering concern manufacturing switchgears of various kinds and capacities in Bombay. It has an installed capacity to produce 19.21 lakh switchgears per annum, the actual pro­duction in a latest year being 14.57 lakhs. (A State-wise Picture of Large Scale Industrial Activity, 1981. )  The concern has taken up an ambitious expansion and modernisation programme. The Crompton Greaves which has a big name in electrical industries is another manu­facturer in this field. The Hindustan Klockner Switchgear Ltd., incorpo­rated in 1957, has a factory at Borivli. It manufactures standard starters, starters for special applications, push button stations, limit switches, remote control stations, special starters for machine tool controls and a variety of equipment. The Larsen and Toubro Ltd. with a plant at Powai, also manufactures switchgears, and other electrical equipment and elec­tronic controls. The Kiron Industries Ltd., with works at Mazagaon, was established in 1951. It produces high voltage isolators upto 220 KV, switchgears, panel boards, distribution switchboards and high tension and low tension cable boxes. The Morarji Dorman Smith Ltd., incorporated in 1961 has a plant at Worli which produces miniature circuit breakers and distribution boards. (IEMA, op. cit. 1974.) The Hindustan Brown Bovery with a factory at Goregaon and the Macneilland Magor Ltd., are also engaged in this industry in Bombay.

The factories require extruded steel sections, extruded brass and copper sections, phosphor, bronze, spring steel, wires, strips, special silver alloy, insulating bars and tubes, porcelain and steatite bushings and electrical grade thermosetting moulding powder. These materials are increasingly manufactured in the country, though formerly they were imported.

CAPACITORS AND CONDENSERS

This is comparatively a small industry, and the products are manufactured by the big companies producing a wide range of electrical machinery and equipment, as also by small units. Some of the factories in Bombay produce capacitors required for power factor improvement with associated control-gears for rating upto 33 KV. In addition, furnace capacitors, condenser bushings, starting and running capacitors for electric motors, fans are also manufactured.

OTHER ELECTRICAL EQUIPMENT

The electrical industry in Bombay is also engaged in production of various ancillary equipments for power generation, transmission, distribution and utilisation of electrical energy. This equipment includes insulators and bushings, diesel generating sets, welding generators, welding transformeis, welding rectifiers, spot welding machines, electric house service meters, measuring and controlling meters, and instruments.

Electric meters manufacturing is one of the segments in the electrical industry in Bombay. The industry grew in Bombay after 1955 in which year the first factory in the city was established. The Industrial Meters Pvt. Ltd., incorporated in 1961, has two plants at Kandivli and Lower Parel. It manufactures electrical measuring instruments and other equipment. The Malik Meters Pvt. Ltd. started in 1967 is another producer of meters and electric measuring instruments in Bombay. (IEMA, op. cit., 1974.)

ELECTRIC WIRES AND CABLES INDUSTRY

This industry is conceived to manufacture a wide range of insulated wires and cables of various specifications. As per the Annual Survey of Industries there were 45 registered factories providing employment to 3,339 employees including 2,412 workers in Bombay in 1973-74. The number of factories declined to 23 providing employment to 2,084 persons including 1,437 workers as per the survey of 1975-77. The fall in employment was almost commensurate with that in the number of factories. The structure of capital of the Bombay industry can be studied from the following figures (The figures are annual averages in the respective survey periods.):—

(Rs. in lakhs)

Item

1973-74

1975-77

Fixed capital

3,81.66

4,22.20

Working capital

3,42.24

5,54.95

Capital invested

11,05.17

12,62.52

Loans outstanding

75,51.16

9,72.19

The decline in number of factories and employment was thus not accompanied by a decline in capital investment in the industry. The factories worked for 634,702 man-days per annum as per the 1975-77 survey. In spite of the fall in employment there was a rise in the total emoluments from Rs. 1,73.34 lakhs in 1973-74 to Rs. 2,34.00 lakhs per annum in 1975-77. The wages to workers also rose from Rs. 94.41 lakhs in 1973-74 to Rs. 99.53 lakhs in 1975-77 period. This might be due to general rise in wages and dearness allowance. It can definitely be said that the share of wages to workers is much less in the total emoluments paid by the factories. This can be attributed to the preponderance of technical personnel and managerial personnel over workers.

The factories consumed fuel valued at Rs. 30.77 lakhs in 1973-74 and at Rs. 51.42 lakhs per annum in 1975-77. They consumed material worth Rs. 22,65.02 lakhs and Rs. 22,38.06 lakhs during the years under study. The total inputs of the factories were to the tune of Rs. 24,46.90 lakhs in 1973-74 and Rs. 24,62.52 lakhs in 1975-77, the rise being very meagre. The other inputs of the factories, which are available for the 1975-77 survey period, were worth Rs. 1,73.05 lakhs. The value of plant and machinery was computed at Rs. 6,91.42 lakhs and Rs. 7,87.92 lakhs in the years under reference. The structure of the output of the industry in Bombay is shown below:—

(Rs. in lakhs)

Item

1973-74

1975-77

Value of products    ..

27,78.23

28,61.36

Other output

N.A.

50.51

Total output

28,66.91

29,11.87

Depreciation

55.35

50.86

Value added on manufacture

3,64.64

3,98.49

The above figures bring home some conclusions. The total output of the industry comprises the main products viz., wires and cables, while other bye-products are only of meagre value. The decline in the number of factories and employment was not reflected in output as the value of products and total output registered an increase over the period under study. The ratio of value of inputs and output shows the satisfactory position of the industry. The value added on manufacture is almost one-third of the capital investment in the industry, while it is almost 96 per cent of the fixed capital of the factories in Bombay, in 1975-77.The factory payments of the companies were computed at Rs. 1,58.37 lakhs and the net income at Rs. 2,40.12 lakhs per annum as per the survey of 1975-77.

From the above analysis it can be deduced that wire and cable manu­facturing in Bombay is more of a capital intensive rather than a labour intensive industry.

The electric wires and cables industry broadly covers the manufacture of, (i) bare and reinforced conductors, chiefly of copper and aluminium,(ii) rubber or plastic insulated electrical installation cables, (iii) cotton, silk or enamel covered electrical winding wire for instruments, (iv) paper insulating power cables, and (v) dry core telecommunication cables.

The industry commenced in India in 1923 with the manufacture of bare copper conductors and rubber insulated cables and flexibles by a factory at Tatanagar. In the initial stage, the Calcutta firm which owned the factory was helped by Government by duty-free imports of electrolytic copper rods for manufacture of electric cables and wire. (Handbook of Commercial Information, 1963.) The industry expanded during the Second World War when foreign supplies were curtailed and the growth of indigenous industries and domestic demand increased considerably.

The growth of the industry in Bombay started from middle of this century. Since then the demand for various cables and wires continued to rise progressively, and new units came into existence to manufacture bare copper conductors, plastic coated copper and aluminium wires, rubber sheathed cables and P.V.C. coated wires. It is now a well-established industry and practically all needs of overhead transmission lines, under­ground transmission and power distribution network are met by the local industry. In the field of cables, India is one of the pioneer countries to introduce aluminium as conductor for underground cables. The progress made by the local industry has found acceptance in the world market and PILC/PVC power cables with aluminium conductors art now exported to many countries. The progress in the production of PVC, polythene and cross-linked polythene coated cables is remarkable. At present, underground cables upto 33 KV rating are manufactured indi­genously. The industry is also meeting the domestic demand for a variety of cables like mining, trailing, shot firing, aerial cables, etc.

The increasing demand for sophisticated electrical equipment required usage of winding wires and strips insulated with enamels or covered paper, cotton, fibre glass etc. The winding wire industry is meeting all such diverse needs.
The Ajit Wire Industries at Andheri (East), established in 1949, under­took the manufacture of enamelled copper wire in 1955. This firm in Bombay is now one of the pioneers in the line in India, and it manufac­tures enamelled copper wires according to British and Indian standard specifications. This unit was the first to manufacture enamelled aluminium wire in India in 1962. It has an up-to-date laboratory and modern machi­nery and testing equipment which ensures super enamelled copper wire of good quality. It supplies good quality wires to the reputed electric and electronic manufacturers in Bombay as well as those in India. This concern was the first to go overseas to offer technical know-how for the manufacture of enamelled copper wires to Messrs. Magnet Wires and Electricals Ltd., Kuala Lumpur, Malaysia. Its technical collaboration with the latter Malaysian firm started in December 1971. (IEMA Directory, 1974). It is gratifying to note that this Bombay firm has extended technical collaboration to a foreign firm in this complicated sector of industry.

The Devidayal Electronics and Cables Ltd., established in Bombay on 15th January 1953 (Ibid). is another reputed large manufacturer of enamelled wires and cables in Bombay. It manufactures super enamelled wires and strips, steel and alloy steel wires, covered wires and strips, insulating enamels, nickel chrome alloy strip wires etc. Besides its original established factory at Reay Road in central Bombay, it has set up a new plant at Pokhran Valley near Thane in 1960. It has recently undertaken a phased programme of modernisation.

The Hindustan Transmission Products, with a factory at Chandivli in Bombay, was originally established in 1940. The products manufactured include super enamelled copper wire, insulated wires and strips, magnet wire enamels, synthetic resins and insulating varnishes. (Ibid). It is one of the old concerns in this industry in Bombay.

The Power Cables Pvt. Ltd., with a factory at Mahul near Trombay, was established in 1958. (Ibid). It manufactures electric cables and wires, conductors, welding electrodes, PVC compounds, iron and steel wires, insulating oils and a number of other products.

The Cable Corporation of India has a factory at Borivli (1957) and is one of the large-scale manufacturers of cables of various specifications. The sales turnover of this unit was to the tune of Rs. 14.63 crores in 1978-79 and Rs. 31.42 crores in 1979-80. It has an installed capacity to produce 1,600 kilometres of insulated cables and 9,144 kilometres of PVC insulated cables and wires per annum. (A State-wise Picture of Large Scale Industrial Activity 1901.)  The concern is owned by one of the leading industrial houses in India.

ELECTRICAL APPARATUS, APPLIANCES AND OTHER PARTS

This is a very important segment of the electrical apparatus and appliances industry in Bombay, the products of which occupy an honoured place in modern conditions of living. It is mainly a consumers goods industry which is conceived here, for the purposes of analysis, to cover the manufacture of electrical appliances, apparatus and other parts inclusive of electric lamps, bulbs, fluorescent tubes, sockets, switches, electric fans, insulators except porcelain, conductors, electric irons, heaters, shavers, cleaners and many other articles of consumers interest. This concept of the coverage of the industry accords with the classification adopted in the Annual Survey of Industries, the statistics of which are analysed below.

The electrical apparatus, appliances and other parts manufacturing industry, as per the findings of the Annual Survey of Industries in 1973-74 and 1975-77 periods, comprised 185 registered factories in 1973-74 and 129 in 1975-77 in Bombay. The factories provided employment to 7,675 persons including 6,148 workers in 1973-74 which declined to 4,630 persons including 3,372 workers in 1975-77. The decline in employment appears to be commensurate with the decline in number of factories. The structure of capital of the units in Bombay was as under. The figures reveal annual averages in the respective survey periods:—

(Rs. in lakhs)

Item

1973-74

1975-77

Fixed capital

3,33.14

4,06.75

Working capital

6,84.56

3,72.16

Capital investment

11,09.32

11,32.24

Outstanding loans

8,00.00

8,43.55

It can be deduced that in spite of the fall in number of factories and employment, there was no decline in fixed capital, capital investment or outstanding loans, though there was a considerable fall in working capital. It is certain that there was progress in the industry in Bombay during the period under study.

The industry in Bombay worked for 1,253,433 man-days per annum during the period 1975-77. There was a considerable decline in total emoluments, namely from Rs. 3,09.48 lakhs including wages paid to workers (Rs. 2,03.80 lakhs) in 1973-74 to Rs. 2,66.53 lakhs including wages paid to workers (Rs. 1,42.79 lakhs) per annum during 1975-77. This decline could not be due to fall in wages but due to fall in employment.

The fuel consumption by the electrical apparatus and appliances industry in Bombay was valued at Rs. 30.91 lakhs in 1973-74 and at Rs. 39.11 lakhs per annum in 1975-77. They utilised raw material worth Rs. 18,14.10 lakhs and Rs. 17,73.89 lakhs, respectively in the years under study. The other miscellaneous inputs of the factories were worth Rs. 3,02.36 lakhs per year in 1975-77. The total cost of inputs was Rs. 20,47.59 lakhs in 1973-74 which increased to Rs. 21,15.36 lakhs in 1975-77. The increase in costs may be attributed to the rise in prices. The fall in the value of plant and machinery from Rs. 4,07.40 lakhs to Rs. 3,89.01 lakhs over the years under reference is inexplicable. The volume of production of the Bombay factories is analysed below. The figures represent annual averages during the two survey periods:—

(Rs. in lakhs)

Item

1973-74

1975-77

Products

25,33.24

25,33.98

Other output

N.A.

86.42

Total output

25,84.80

26,20.40

Depreciation

48.74

47.60

Value added on manufacture

4,88.46

4,57.23

Factory payments

N.A.

1,35.71

Net income

N.A.

3,21.52

The above statistics bring home the conclusion that there was a decline in the output and value added on manufacture in the industry in Bombay. The fall in production was however less than proportionate with the fall in number of factories and employment. It can therefore be deduced that the marginal units must have wounded up and that consumer resistance to products might have reduced demand and production in the Bombay industry, during the limited period under consideration. It may however be borne in mind that the period under review is too short to deduce any far-reaching conclusions, and that the industry has actually prospered in the post-Independence period.

As regards the structure of the industry in Bombay, it can be surmised that it is more of a capital intensive industry rather than a labour intensive one. The industry consumes less fuel than many other industries such as cotton textile and some sectors of metal and machinery industries. The ratio of total output to total inputs shows the profitability in the industry. The value added on manufacture compared very favourably with the fixed capital.

ELECTRIC FANS

The electrical industry in India commenced with the manufacture of fans. It was in 1924 that electric fans manufacturing was commenced in the country by a private limited company in Calcutta. The fans were sold at competitive prices and became popular among the elite class within a short period. The success of this concern provided an impetus to many others. By 1939, about half a dozen firms undertook manufacture of electric fans in the country. (Handbook of Commercial Information, 1963.)  The progress of the industry has been phenomenal and new records of production were set up in 1959-60.

The history of the industry in Bombay dates to the year 1937 during which the Crompton Parkinson Limited was established The lead given by this concern was followed by a number of units which were set up in this city.

The industry received considerable encouragement during the Second World War when there was a sharp decline in imports. The industry sought for tariff protection from the Government in 1949. In 1951, the Indian Tariff Board, having regard to the comparative figures of the landed costs of imported fans and the fair selling prices of the indi­genous products and also keeping in view the restrictions on imports, recommended that there was no case for protection to the industry.

In 1950-51, there were 22 units in the organised sector in the country which had a capacity to produce about 288 thousand fans per annum. By the end of 1960-61 the number of units increased to 24 with an installed capacity to manufacture about 871,750 fans per annum on a single shift basis. Of these six were in Maharashtra. (Ibid.)

With revolutionary changes in the methods of production and assembly, it has been possible to achieve distinct economies in costs of production and to make available the products at even lower prices in the face of increasing costs of raw material and wages.

The principal manufacturers of electrical fans in Bombay are Crompton Greaves Ltd., Rallis India Ltd., Almonard Pvt. Ltd. and G.E.C. Ltd., Besides, two other companies have their registered offices in Bombay, the plants of which are located elsewhere. The Crompton Greaves, with four units in Bombay, two being at Worli and two at Kanjur Marg (Bhandup) is by far the oldest concern in Bombay. The Crompton, a leader in electrical engineering and technology since 1900, were the first in India to make high power-factor capacitor fans. It manufactures almost every­thing in electricals. Some of the finest and the best equipped material testing, quality control, research and development facilities in the country are with the Crompton Greaves in Bombay. A few landmarks in the development of this enterprise may not out of place. Established at Chelmsford in England about hundred and ten years ago, the Crompton Parkinson Ltd., constructed a plant at Worli in Bombay in 1937 to manufacture a wide range of electrical equipment. It was integrated with Messrs. Greaves to form Greaves Cotton and Crompton Parkinson on April 27, 1937. There was financial participation of Crompton Parkinson in Greaves Cotton in 1947 with a view to accelerating the expansion of its Worli plant. The two companies finally merged in 1966 to form Crompton Greaves Ltd., bringing together all the diverse functions under one management. (IEMA, op. cit, 1974). The sales turnover of the company was valued at Rs. 70.09 crores in 1978-79 and Rs. 88.74 crores in 1979-80. (A State-wise Picture of Large Scale Industrial Activity, 1981).

The Rallis India established in 1957 is another large-scale manufacturer of electric fans of all kinds. It has a factory at Mulund in Bombay, and has an installed capacity to manufacture 3.50 lakh fans per annum. Its production of fans in a latest year amounted to 2.38 lakh fans. (Ibid.) The Almonard with a factory on Saki-Vihar road and the G.E.C. with a factory at Goregaon (Aarey Road) also manufacture fans in Bombay.

Almost all types of fans are manufactured by these firms like ceiling fans, table and pedestal fans, industrial fans and high pressure blowers and exhaust fans. The products are exported from India to 38 countries in the world, and the industry is an important foreign exchange earner, accounting for as much as 10 per cent of the total exports of engineering goods from India in 1963. (Handbook of Commercial Information, 1963.) Within the country, the demand for electric fans is rising very rapidly on account of progress of electrification even in remote areas and improvement in the level of living of the people.

Fans which were not within reach of the lower middle class families about 25 years ago have penetrated them of late. Consequently the demand for table fans and ceiling fans has soared very high.

Almost all the raw materials required for electric fan manufacturing are available indigenously.

ELECTRIC LAMPS

The expansion of industrialisation, rural electrification and the pro­gressive rate of urbanisation have contributed to the growth of this industry in Bombay. Rising income and standard of living are also responsible for an increase in demand for the appliances like electric lamps, fluorescent tubes, etc. during the last about 30 years. Since 1952, there was a fifteen-fold increase in the output of fluorescent lamps, while the output of electric bulbs has trebled. (Kothari's Investor's Encyclopaedia.)

The first electric lamp manufacturing factory was established in Calcutta in 1932. Two other companies manufacturing lamps were also incorporated in the same year in Calcutta. Just before the Second World War two factories were set up in Bombay, (Handbook of Commercial Information, 1963.) and they were the pioneers of the industry in the city.  During the War the existing factories expanded their installed capacity, while new ones came into being. By 1950, there were eleven factories in India including the two in Bombay, and they had a total annual rated capacity to produce 26 million lamps. The manu­facture of fluorescent tubes was undertaken for the first time in India in 1952. The industry went through various phases of growth during the post-planning era.

The industry was partly dependent upon imports of components in the initial stages of its growth. About 40 per cent of the requirements of raw materials and components were imported in 1961-62. (Handbook of Commercial Information, 1963.) During the Third Plan certain chemicals, soda, lime, glass tubing, glass shells, caps, solder wires and tungsten filament were manufactured indigenously.

The imports were chiefly from Great Britain, West Germany, the Netherlands and Japan. Automobile bulbs were imported from Japan and Czechoslovakia and studio lamps from Britain, the Netherlands, West Germany, Japan and the U.S.A. Gas filled lamps and incandescent lamps were imported mainly from the above-mentioned western countries. (Ibid). Gradually the local production was not only increased but was also diversified to cover almost all products with the result that the imports are now restricted to categories of projector lamps, scaled beam lamps and miners cap bulbs.

The Crompton Greaves Ltd., with a world-wide reputation for manufacturing some of the finest electrical equipments, has four manufacturing units in Bombay, two at Worli and two at Kanjur Marg (Bhandup). These units together manufacture lamps, fluorescent tubes, fans and a wide range of electrical products. Besides, there are many other manufacturers in Bombay most of which are of recent origin. There are many feeder ancillary industries in Bombay which manufacture brass caps, glass tubes and rods.

DOMESTIC ELECTRICAL APPLIANCES

The common domestic electrical appliances comprise electric iron, kettle, water heater, radiator, stove, toaster, coffee percolator, oven, hot plate, cooker and incubator. The components of such appliances consist of a metallic body or frame, heating elements of resistance wire and insulating materials. This industry is of very recent origin, and is mainly confined to the small-scale sector. The initial growth of the industry was mainly in the form of assembly of parts, which in subsequent years developed into a manufacturing and assembling industry. It developed after the commencement of the First Five-Year Plan when imports of luxury articles were curtailed. In  1957-58 there was one large-scale factory in this industry in Bombay, while there were many small-scale units.

A mention may be made of some of the manufacturers in Bombay:—

Devidayal Stainless Steel, Reay Road; Killick Nixon; Standard Electrical Products, Jogeshwari (West); Industrial Controls and Appliances, Andheri (East); Homa Industry, Andheri-Kurla road; Anchor Industries, Malad; Ketco Geysers, Tardeo, etc.

The industry has grown mainly under consumer patronage and ban on imported articles. Its growth is traceable from the mid-fifties of this century. The products of this industry have penetrated the houses of even the middle class and lower middle class of Bombay, though the costlier electrical gadgets are well beyond their reach as yet.

The principal raw materials required by this industry comprise resistance wires and strips, ceramic bases and wire holders, insulators, metal castings and sheet metal pressings, etc. A number of small components are also required. All these are locally available, and an ancillary sector of the industry has grown along with the main industry in Bombay. Resistance wires are generally imported though most of the other items are procured from indigenous sources. A number of articles produced in Bombay are exported to South East Asian countries. Japan and China are however the formidable rivals of the Bombay products in foreign markets.

OTHER ELECTRICAL EQUIPMENT

Manufacturing of other electrical equipment including electric switches, sockets, holders, adopters, insulators, etc. is undertaken in Bombay mainly by small-scale units and proprietary concerns. Information for these units is not available.

ELECTRONICS INDUSTRY

The electronics industry in India as well as in Bombay is increasingly playing an important role in national development. This industry nucleated during the early 1950's with the manufacture of radio receivers by a few firms. The National Radio and Electronics Company Limited established in Bombay in 1940 is one of the pioneers in the manufacture of entertainment and consumer electronic products and a variety of industrial and professional electronic products. The other pioneers in the electronics industry in Bombay were the Advani-Oerlikon established in 1951 and the Cosmic Radio established in 1952. The Motwane Private Limited was however the earliest concern in Bombay established in 1909. Since the early 1950's the industry in Bombay has not only grown in total volume, but also has diversified enormously. In fact, there is hardly any major sector of the economy in which electronics do not find some use. The trend has been towards growth of professional electronics and self-reliance in many of the high technology sophisticated fields.

The importance of the industry can be judged from the following facts. More than 80 per cent of India's population is now covered by the mass communication media like radio and television. The defence preparedness of the country is now based on the indigenously manufactured radars and sophisticated systems. The process control instrumentation is being increasingly used for economic running of different processes and manufacturing industries like fertilizers, petrochemicals, etc. Indigenously manufactured computers are being used in some cases. Electronics plays an important role in the control of nuclear reactors and optimal distribution of power through the grids. The launching of the first Indian satellite stood testimony to the Indian ability to design and implement complex projects involving myriad of electronic systems. (Times of India Directory and Yearbook, 1980-81.)

The production of electronics and components increased tremendously during the last about 15 to 20 years. The industry has gained a firm ground in Bombay. Besides meeting the total demand, there is a substantial export of electronics items. The industry has diversified into areas like radio frequency cables, microwave components, digital instruments, control equipments, etc.

The electronics industry mainly comprises the manufacture of consumer electronics like radio sets, television sets, tape recorders, record players and public address systems; telecommunication equipment; computers and data processing equipment; control and industrial electronics which are meant for optimisation of operational cost, quality and efficiency in production in various industries; medical electronic equipment; instruments and components and materials. The establishment of the Television Centre in Bombay in 1972 gave new dimensions to this industry. A number of units have been incorporated to manufacture T. V. sets which have found inroads into thousands of houses in the city.

As mentioned earlier the Motwane Private Limited established in 1909 was the earliest concern to manufacture public address amplifiers and special sound systems in Bombay. It is however, remarkable that the Forbes Forbes Campbell and Company Limited is by far the oldest concern in Bombay established as early as 1767 (It was established in 1767 a as trading concern under the name Forbes and Company.) which later on entered electronics and engineering industries in Bombay. The concern is running two factories in Bombay, viz., at Chandivli Estate and Kurla, besides two others elsewhere. It manufactures wire and microwave communications, sound and vision broadcasting equipment, airfield equipment, instruments, electronic components and raw material. The Larsen and Toubro Limited established in Bombay in 1938 has a factory at Powai which manufactures plant and equipment for nuclear power generation, electrical switchgear and electronic controls, and a wide range of sophisticated machines for various industries Its sales turnover was valued at Rs. 74,49 crores in 1979-80. The activities of the National Radio and Electronics Co. (1940) are already mentioned earlier. The installed production capacity of its factory at Andheri is as under':—

Item

Numbers (000)

Radio speakers

258

Radio receivers

200

Voltage stabilisers

15

Electronic office machines

15

The turnover of its sales was computed at Rs. 10.82 crores in 1979-80. The Advani Oerlikon Limited established in 1951 in Bombay has a factory at Bhandup. It is a leading manufacturer of electronic control equipment, welding electrodes, welding rectifiers, motor generators, power and distribution transformers, power control equipment, electrostatic photo­copying equipment and a number of sophisticated machine tools. It has started two research and development wings, one in Bombay and another in Pune. Its sales turnover was worth Rs. 13.48 crores in 1977-78. The Siemens India Limited established in 1957 in Bombay, has a factory at Worli and another at Andheri, besides two units elsewhere. It manu­factures railway signalling relays, switchboards, electric motors, electro­medical equipment, instrumentation equipment, switchgears and many other items. The installed capacity of all the units of the Siemens is given below (A State-wise Picture of Large Scale Industrial Activity, 1981.):—

Product

Thousand Nos.

Switchgears

1,921

Electric motors/generators

15

X-Ray equipment

0.750

Coupling filters

70

Switch boards

15.20

The turnover of sales were computed at Rs. 72.73 crores in 1978-79 and Rs. 95.80 crores in 1979-80. The Killick Nixon incorporated in 1947 has a factory at Chandivli which produces electronic goods and other machinery. (Bombay Chamber of Commerce Directory, 1976.)

There are a number of other concerns in Bombay which are engaged in the manufacture of electronic goods.

The electronics industry is a highly capital intensive industry. The employment potential of the industry is limited as most of the functions are carried out by sophisticated machinery. It is also a highly technologically advanced industry requiring the services of technocrats and trained electronic engineers. The industry in Bombay as in India is awaiting a bright future.

The industry found a congenial home in Bombay mainly on account of the infrastructure facilities and the availability of electronic engineers. The demand for the electronic items also provided a tremendous stimulus to this industry. For example, tape recorders, cassette players, stereo amplifiers and stereo players are highly in demand from the well-to-do as well as the higher middle class with the result that manufacturers were encouraged to produce them. A recent addition to the sound and light electronics is the video player which is making inroads into hundreds of households. The demand for electronic calculators is almost multiplying.

Electronic sound technology has advanced tremendously during the test about ten to fifteen years. The establishment of the Television Centre in Bombay in 1972 gave a great fillip to the industry in this city. The demand for T.V. sets and parts thereof has been progressively increasing. The demand for stereo players, amplifiers, tape recorders, cassette tapes, video players and a wide range of sound electronics has increased tremendously. The industry, therefore, received a stimulus during the last about 10 to 15 years in Bombay.

The Cosmic Radio Limited with a factory at Andheri was incorporated in Bombay in 1952. It manufactures stereo amplifiers and loudspeakers, stereo cassette tape decks, tape recorders, record players and stereo head­phones. The Polestar Electronics Private Ltd. which has a factory at Kandivli manufactures television receivers, amplifiers and a range of sound electronic goods. It has expansion plans to manufacture micro processors and microwave ovens. It has plants at Delhi and Chandigarh as well.

As per the classification adopted in the Annual Survey of Industries, several electronic goods are classified in a single group. It includes the manufacture of radio and television transmitting and receiving sets including transistor radio sets, sound reproducing and recording equipment including tape recorders, public address system, gramophone records and pre-recorded magnetic tapes, wires and wireless sets, telephone and telegraph equipment, signalling and detection equipment and apparatus, radar equipment and installations, parts and supplies specially used for electronic apparatus.

As per the Annual Survey of Industries there were 39 registered factories in this group of industry in Bombay in 1973-74 which fell in number to 35 in 1975-77. The factories provided employment to 6,051 employees including 4,444 workers in 1973-74 which declined to 4,842 employees inclusive of 3,365 workers in 1975-77. The structure of capital of the factories was as under. The figures reveal annual averages for the survey periods.


(Rs. in lakhs)


Item

1973-74

1975-77

Fixed capital

4,66.25

4,58.52

Working capital

5,00.93

4,63.50

Capital investment 

11,59.19

14,28.85

Outstanding loans 

8,71.02

10,20.27

It is evident that there was an increase in capital investment in the industry in spite of a fall in fixed capital, working capital, number of factories and employment.

The factories worked for 13,85,178 man-days per annum in 1975-77 period. The total emoluments paid to employees amounted to Rs. 2,62.73 lakhs inclusive of wages to workers amounting to Rs. 1,58.95 lakhs in 1973-74 which increased to Rs. 3,24.51 lakhs and Rs. 1,92.50 lakhs respectively in 1975-77. This increase could be attributed to rise in wages, bonus and other monetary benefits to the employees.

By the very nature of this industry the fuel consumption forms a smaller proportion of the costs of production. It amounted to Rs. 13.05 lakhs in 1973-74 and Rs. 20.76 lakhs in 1975-77. The value of raw materials consumed by the factories was Rs. 10,16.36 lakhs in 1973-74 and Rs. 9,80.73 lakhs in 1975-77. The value of other inputs was Rs. 3,27.69 lakhs in 1975-77. The total inputs of the Bombay factories were computed at Rs. 1,05.00 lakhs and Rs. 13,29.18 lakhs, respectively in 1973-74 and 1975-77. The value of plant and machinery was computed at  Rs. 2,92.12 lakhs in 1973-74 and Rs. 2,37.90 lakhs in 1975-77.

The structure of production by the firms in Bombay was as under. The figures are annual averages :

                                                                                                                (Rs. in lakhs)


Item

1973-74

1975-77

Products

14,16.22

15,99.82

Other output

N.A.

1,99.10

Total output

15,18.50

17,98.93

Depreciation

27.78

35.93

Value added on manufacture

4,40.71

4,43.81

The factory payments of the units were worked out at Rs. 145.84 lakhs while the net income at Rs. 2,87 98 lakhs per annum in the 1975-77 survey period.

The above statistics lead us to some conclusions. Though there was a decline in the number of factories, employment, and raw material consumption, the total output showed a conspicuous increase. It is a highly capital intensive industry with low employment opportunity. The value of products and value added on manufacture also registered a rise over 1973-74. The value added on manufacture is quite high as against the fixed capital and working capital of the industry. The ratio of total output to total inputs is high and is suggestive of the profitability of the industry. The net income of the companies in 1975-77 shows the high returns on capital in the industry. The high rates of dividend distributed by most of the concerns in Bombay also bear testimony to the high iate of returns ranging upto 30 percent in some efficiently managed companies in Bombay.

RADIO RECEIVERS

Manufacture of radio receivers is largely a post-Independence phenomenon. The expansion of radio broadcasting service in the country during the last few decades helped growth of the industry. The Electrical Machinery and Equipment Panel on the development of electrical industries in its Report (April 1947) had observed that adequate consideration was not being given to the production of radio receivers in the country at that time.

According to the Wealth of India by the Council of Scientific and Indus­trial Research, the assembling of receiving sets from imported components was started in the third decade of this century after the incorporation of medium wave broadcasting transmitters in Bombay and Calcutta in 1927. As per the Wealth of India a Bombay firm which was set up in 1940, subsequently entered into technical collaboration with a London firm, not only to assemble receiving sets but also to manufacture several components.

Production of a few components like wooden cabinets, metal parts, knobs, transformers, chokes, coils, resistors, pilot lamps had already been taken up on a limited scale. The components and raw material which were required to be imported were valves, insulating materials, condensers, loudspeakers, enamelled copper and live wires and other precision parts.

It is now an important industry as the demand for radio sets and transistors is growing very fast. Like many other avenues of production Bombay has provided a congenial home to this sector also. Besides the units in the organised sector, there are several small-scale and cottage industry units engaged in this line of production in Bombay.

STORAGE AND DRY CELL BATTERIES

The growth of demand for cars and trucks and the increasing operations of railways and telephones provided an impetus to the industry producing storage and dry cell batteries. In fact many services and industries are now increasingly using storage batteries. Naturally this industry grew rapidly since the Second World War. It is a matter of gratijBcation that the industry has fully justified the protection granted to it by the Government.

The first dry cell battery making factory in India was established in 1926 by an English firm near Calcutta. Another firm came into the field in 1936 in Maharashtra. At the beginning of the Second World War, these were the only two companies in India manufacturing about 18 million dry cell batteries annually. During the war 80 per cent of the production was reserved for use by the defence services. The industry was granted tariff protection in 1947 which was continued upto 1954. In 1950-51, three units out of four in the country were in Maharashtra. (Handbook of Commercial Information, 1963)

Storage batteries differ from dry cells as they depend for their operation on the reversible reaction of electric current with which they are charged. A storage cell consists of two dissimilar electrodes immersed in an electro­lyte. The two types of commercial batteries are lead acid cells and alkaline cells. Storage batteries are very useful for many services.

The first attempt to manufacture storage batteries was made by a firm in Calcutta in 1931. The increased demand during the Second World War encouraged an increase in production to 1.22 lakh storage batteries per annum in India. The tariff protection granted to the industry in 1948 was continued upto the end of 1955. The industry manufactures various types of batteries for motor vehicles, automobiles, electric driven equipment, marine engines, aircrafts, tractors, tanks, etc. There are special batteries for railways, telephones, telegraphs, power stations, fork lift trucks, etc. Till the mid-fifties they were imported from foreign countries. Great advancements have now been made in this industry in recent years.

The Standard Batteries Ltd., Bombay, in collaboration with a Swedish concern has made immense progress in this field, and it possesses equip­ment and machinery to produce batteries of a high standard. It has two factories in Bombay viz., at Santacruz and Bhandup. The installed capacity of this concern and production in a latest year are given below  (A State-wise Picture of Large Scale Industrial Activity, 1981) :—

Item

Installed capacity (No.)

Production   (No.)

Sales in      1979-80(Rs. in crores)

Lead acid storage batteries

7,05,800

3,97,335

 

     18.64

 

Cap lamps without batteries

60,000

16,545

Battery operated trucks

120

84

 The Estrela Batteries, founded in Bombay in 1939 has a factory at Dharavi. It was primarily formed to manufacture electric batteries, dry cells and other electrical goods. The company has all the necessary machinery, a mechanical engineering department and a well-equipped laboratory. It also manufactures battery for flash lights, radio-sets, automobile vehicles, special instruments and signalling equipment. It has an installed capacity to produce 130 million dry cells and batteries, of which it actually produced 46.60 millions in a latest year. The sales turnover of the concern was Rs. 6.10 crores in 1978-79 and Rs. 5.53 crores in 1979-80.

The Union Carbide of Bombay is a renowned manufacturer of dry cells for transistor sets and torches. It is also a manufacturer of auto lamps.

Besides the large-scale manufacturers, there are many small units in Bombay which manufacture, assemble, repair and rebuild storage batteries. The small-scale sector recorded a substantial progress during and after the Second Five-Year Plan.

The storage and dry battery cells industry in Bombay is a foreign exchange earner, and it caters to the needs of defence services and public services, such as, telegraphs, telephones, railways and telecommunications. Though most of the raw materials required for the industry are now available indigenously, the industry has to depend upon imports of sulphur and synthetic resins. Progressively sulphur is also being obtained from the petroleum refineries in Bombay which produce it as a bye-product. The Indian Standards Institute has formulated standard specifications for lead acid storage batteries for aii crafts and motor cycles as well as heavy duty and light duty lead acid storage batteries for motor vehicles, hard rubber containers for motor vehicle batteries and stationary cells and batteries.

As per the Annual Survey of Industries there were nine manufacturers of dry and wet batteries in Bombay in 1973-74 which provided employment to 3,739 employees. The fixed capital in the industry was Rs. 372.43 lakhs, working capital Rs. 112.33 lakhs and invested capital Rs. 818.07 lakhs in the same year. The total emoluments paid to workers were of the order of Rs. 3,09.48 lakhs.

The factories consumed raw materials worth Rs. 10,48.20 lakhs, the value of plant and machinery being Rs. 448.68 lakhs. The value of products of the industry was Rs. 15,84.88 lakhs. The total output and total inputs of the Bombay industry were computed at Rs. 15,59.46 lakhs and Rs. 11,51.97 lakhs, respectively. This shows the profitability in the industry, and the high returns on capital. The value added on manufacture was Rs. 3,48.82 lakhs in 1973-74. (Figures for 1975-77 are not available.)

AIR-CONDITIONERS AND REFRIGERATORS

The manufacturing of air-conditioners and refrigerators which are deemed to be luxury items by Indian standards is of very recent origin. Its history in India is traceable to the period of the First Five Year Plan (1951-56). Initially the industry was limited to assembly of imported parts and components. At the end of the Second Plan there were 14 units in the organised sector in India, manufacturing domestic and commercial refrigerators, air-conditioners, and water coolers, of which five were located in Bombay. Besides, there were ten units manufacturing air-conditioners, of which three were in Bombay. (Handbook of Commercial Information, 1963.) The industry found a congenial homein Bombay in addition to Calcutta and Delhi. The Government of India took interest in fostering the cause of this industry since 1960-61, when several licences for the manufacture of scale units and compressors were issued. In these days compressors and control units and modulating motois were imported for the refrigerators. Now, however, all components are manufactured indi­genously, a small portion being produced by ancillary units. Black and galvanised steel sheets and light steel structural are required by the industry which are available in the country.

The Godrej and Boyce Co. has a nation-wide name for refrigerators. The company with plants at Lalbaug in Central Bombay and at Vikhroli, is an integrated unit. Its sales turnover inclusive of refrigerators, furniture and other items was of the order of Rs. 107.64 ciores in 1979-80. The Voltas Ltd. with a factory at Lalbaug and another factory at Thane is another reputed company with an installed capacity to manufacture 15,100, air-conditioners, 33,000 refrigerators and 2,400 water coolers per annum. The sales turnover of the two plants of the Voltas was valued at Rs. 178.74 crores in 1978-79 and Rs. 204.50 crores in 1979-80. (A State-wise Picture of Large Scale Industrial Activity, 1981.) There are many other units in Bombay in this industry and activities allied to it. To mention a few: Hind Rectifiers, Bhandup; Jafkay Engineering Corpo­ration, Marol; Khandelwal Herrmann Electronics, Bhandup; Larsen and Toubro, Powai; Premier Automobiles, Kurla, etc. The Larsen and Toubro is specialised in the manufacture of cold storage plants required for very large dairies and meat processing plants.

The refrigerators and air-conditioners manufactured by the Bombay industry are exported to many middle-east and south-eastern countries.

The Annual Survey of Industries statistics for the refrigerators and air-conditioners manufacturing industry are not separately available. The 1973-74 survey has grouped together manufacture of refrigerators, air-conditioners, fire-fighting equipment, and their parts, components and accessories. According to this grouping there were 29 factories in Bombay which provided employment to 2,432 employees including workers in 1973-74. The fixed capital of the factories was Rs. 125.10 lakhs, working capital Rs. 206.67 lakhs, and invested capital Rs. 574.62 lakhs. The total emoluments paid by the firms in Bombay amounted to Rs. 153.40 lakhs including Rs. 90.56 lakhs paid as wages to workers.

The factories consumed fuel worth Rs. 8.11 lakhs and raw materials worth Rs. 302.22 lakhs. The value of plant and machinery was Rs. 62.37 lakhs. The products of the entire industry group were valued at Rs. 638.43 lakhs, the net value of semi-finished products being Rs. 90.25 lakhs. The total output of the Bombay industry was valued at Rs. 967.81 lakhs against the total inputs of Rs. 388.08 lakhs. The value added on manu­facture was computed at Rs. 570.67 lakhs.

The above statistics show the high ratio of output to inputs, high profits and higher returns on capital. The share of wages in total emoluments is much less in this industry.

Top

MACHINERY AND MACHINE TOOLS

Machinery and machine tools manufacturing is a broad sector of industry which comprises a wide range of manufacturing activity in Bombay. For purposes of analysis this sector, which can very broadly be termed as the engineering industry, is conceived to include the following principal segments of industries:—

  1. manufacture of prime movers, boilers and steam generating plants, such as diesel engines and parts,
  2. industrial machinery for food and textile industries,
  3. industrial machinery for other than food and textile industries, and
  4. manufacture, alteration and repair of general items of non ­electrical machinery, components, equipment and accessories not elsewhere classified.

This Classification of the industry accords with the one adopted by the authorities of the Annual Survey of Industries for 1975-77. The 1973-74 Survey has furnished separate statistics for many more segments, and the same are utilised, wherever necessary, in the account of the respective segments.

Before proceeding to the account of the various segments of this industry, it is deemed useful to give an analytical account of the machinery and machine tools industry, highlighting its principal characteristics, and the place of the Bombay industry in that of Maharashtra. This analysis is based on the Annual Survey of Industries in 1975-77. The figures reveal annual averages for the survey period.

The machinery and machine tools industry in Bombay comprised 630 registered factories which formed 59.38 per cent of the same industry in Maharashtra in 1975-77 period. They provided employment to 39,491 persons which constituted 39.20 per cent of the employment in the State. The invested capital in Bombay factories was of the order of Rs. 1,12,84 lakhs or 32.63 per cent of the invested capital in Maharashtra factories. The output in Bombay was computed at Rs. 2,33,23 lakhs which was 38.64 per cent of that in the State. The value added on manufacture in Bombay was computed at Rs. 61,54 lakhs or 33.86 per cent of the industry in Maharashtra.

The above analysis leads to the conclusion that the machinery and machine tools industry in Bombay constitutes a smaller part of the industry in Maharashtra as compared to the other major industries, such as cotton textile; rubber, plastic and petroleum; metal products; chemicals and electrical machinery. This is attributable to the development of new factories in the Thane-Belapur and Pune industrial areas.

A detailed analysis of the industry as per the Annual Survey of 1973-74 and 1975-77 is given below, the figures levealing annual averages in the respective survey periods. There were 638 registered factories in 1973-74 as against 630 in 1975-77 in Bombay. They provided employment to 36,501 persons and 34,491 persons in the respective years. The structure of capital of the factories can be studied from the following statistics:—

(Rs. in lakhs)


Item

1973-74

1975-77

Fixed capital

30,37.65

37,11.95

Working capital   ..

25,48.89

40,10.68

Capital invested   ..

92,26.25

1,12,83.99

Outstanding loans..

45,04.38

56,31.34

The above statistics reveal the growth of the factories in Bombay, the rise being very conspicuous in regard to invested capital. The factories worked for 1,06,28,514 man-days per annum in 1975-77 period. The cost of production in the industry is revealed by the statistics given below:—

(Rs. in lakhs)


Item

1973-74

1975-77

Total emoluments..

22,85.25

28,91.59

Fuel consumed

2,18.44

4,07.66

Raw material

89,16.13

1,13,83.63

Other inputs

N.A.

49,30.19

Total inputs

1,02,29.82

1,67,21.48

It can be deduced that raw materials constituted a major part of the total cost of production, while the share of wages was much less, and that of fuel very small.

The value of plant and machinery was Rs. 33,09.07 lakhs in 1973-74 and Rs. 43,98.64 lakhs in 1975-77. The structure of output of the factories in Bombay can be studied from the statistics given below:—
(Rs. in lakhs)


Item

1973-74

1975-77

Products

1,36,00.46

1,84,41.20

Other output

N.A.

48,81.63

Total output

1,48,04.77

2,33,22.83

Depreciation

3,79.46

4,47.41

Value added on manufacture .

41,95.48

61,53.94

There was, thus, an increase in output of the industry during the period under review. The factory payments of the units in Bombay were computed at Rs. 9,93.45 lakhs and the net income at Rs. 51,60.48 lakhs in 1975-77.

The conclusion imminent is that the ratio of output to inputs shows the satisfactory condition and profitability of the industry in Bombay. The proportion of value added on manufacture to total inputs and investment also shows the high productivity of the industry. The value added was about 54 per cent of the invested capital in 1975-77. The net income of the factories was about 45 per cent of the invested capital. This shows the high returns on capital investment in the industry in Bombay.

Within the limitations of data constraints, an attempt is made below to give an account of the industry in Bombay at the micro-economic level. The account of some of the well-known machinery manufacturers, on the basis of available information, is given below. (Based on Bombay Chamber of Commerce Directory 1976 and A State-wise Picture of Large Scale Industrial Activity,  1981)  It may however be stated that the information for many units is not available.

Bombay is an important centre of the machine tools industry, and there are about 21 big companies engaged in this industry in the city. The large-scale manufacturers in Bombay include, Godrej and Boyce Manu­facturing Company, Ralliwolf, Larsen and Toubro, Kramps Hydraulic (India), Vickers Sperry of India, Indian Tools Manufacturing Limited, Investa Machine Tools and Engineering Company, Garlic Engineering, Siemens India Limited, Advani Oerlikon, Voltas Limited, Consolidated Pneumatic Tools Company, Schra-Scovill Duncan Limited, Greaves Cotton, Electro Pneumatics, Dee-Key Industries, Bharat Tool Manufacturing Company, Horstanann India Private Limited, Star Diamond Tools, etc.

The Godrej and Boyce, established in 1897, has factories at Vikhroli and Lalbaug. It is one of the old concerns in Bombay engaged in the manufacture of machines tools, locks, safes, steel furniture, steel cup­boards, refrigerators, typewriters, steel tubings, fork lift trucks and a wide range of producers goods as well as consumers goods. It has pioneered in the manufacture of almost all the products mentioned above. It is one of the leading companies in India, and is a reputed manufacturer of machinery and machine tools. The total sales of this company were computed at Rs. 86.42 croresin 1978-79 and Rs. 107.64 crores in 1979-80. The Forbes Forbes Campbell and Company, incorporated in 1934, manu­factures thread cutting tools-taps, dies, rotary cutters, high speed air tools, spark plugs, auto turned components, flexible shaft equipment, special tools, jigs and fixtures. It also manufactures a number of electronic components. It has two factories in Bombay viz. at Chandivli and Kurla, besides others at Aurangabad and Hyderabad. (Bombay Chamber of Commerce Directory 1976.) The turnover of its sales was Rs. 11.39 crores in 1979-80. The Forbes and Company was established as the earliest English trading firm in 1767.

The Greaves Cotton and Company is another very old company of Bombay established in 1859. It manufactures diamond drills, operating equipments and high pressure water circulating pumps, surface drills, industrial diamond tools, steel valves, strainers, filters, float switches and alarm contactors. The sales of the company including the Nasik unit were worth Rs. 72.92 crores in 1979-80. The Turner Hoare and Company, established in 1895, has a factory at Signal Hill Avenue in Bombay which manufactures automobile clutch assemblies, super centrifuges, mineral oil purifiers, vegetable oil refining plants, generating sets, hydro pneumatic material handling equipments, mechanical cleaning rakes for thermal power stations, and many other items under collabo­ration with two U.S.A. firms. The Empire Industries is another very old company established in 1900. It has two factories in Bombay, at Vikhroli manufacturing industrial equipment and vitrum glass, and at Lower Parel engaged in textile processing, besides, a large unit at Ambarnath.

The establishment of the Larsen and Toubro limited in 1938 was an important addition to the Bombay industry. With a huge factory at Powai (It has plants at Bangalore, Faridabad and Kansebahal also)  and another at Madh Island, it manufactures a wide range of machinery which includes: earthmoving and agricultural equipment, hydraulic excavators and material handling equipment, drilling and mining machi­nes; plant and equipment for dairy, meat processing and cold storage, breweries, pneumatic grain dischargers; machinery for sugar, fertilizer, chemical, pharmaceutical, petrochemical industries; plant and equipment for nuclear power generation and for cement, paper and pulp, iron and steel industries, electrical switchgears and other electrical equipment,electronic controls; petrol pumps, valves, instruments, aluminium capsules; packaging machinery; tyre curing presses and low temperatuie welding alloys. The sales turnover of the company was Rs. 74.49 crores in 1979-80.

Product

Installed. capacity (Nos.)

Sales turnover
in 1979-80
(Rs. in crores)

Portable electric tools

60,000

 

4.93

 

Valve refacers

1,200

Stands

4,500

Special purpose motors

12,200

The Macneill and Magor Limited, incorporated in 1949, manu­factures chemical equipment, electrical switchgears, mining equipment, valves, textile coats, industrial diamond tools, pumps, fork lift trucks, etc. Besides, two units in Bombay, it has plants at Calcutta, Madras and Ghaziabad. The Rallis India manufactures petrol engines besides many electrical goods, pharmaceuticals, pesticides, canned foods, etc., at Bombay. It was established in 1948. (It has 4 works in Bombay.) The Westerwork Engineers Limited, established in 1961, has a plant at Bhandup Village which manufactures industrial furnaces for steel plants and rolling mills, heat treatment furnaces, ovens, lime kilns, oil burning systems, boilers, heat exchangers and pressure vessels, pneumatic foundry moulding machines and material handling equipment.

The Vickers Sperry of India Limited which has a factory at Kandivli (East) was established in 1965. It manufactures high pressure oil hydraulic equipment such as pumps, control valves, cylinders, accessories and components thereof. It has an installed capacity to manufacture 60,000 numbers of the items, the sales turnover being Rs. 5.53 crores in 1979-80.

The Consolidated Pneumatic Tools, with factories at Mulund and Nasik, was incorporated in 1957. It manufactures air compressors, a wide range of pneumatic tools for applications in industry, mining and construction work. The sales of the company were worth Rs. 10 crores in 1979-80. The Communication and Power Equipment Company has a factory at Lalbaug, which was established in 1942. It manufactures mechanical power transmission equipment and industrial drives of a wide variety.

The Indian Tool Manufacturers Ltd., with a factory at Sion and two others at Nashik and Aurangabad is a manufacturer of many kinds of machine tools as under :—


Product

Installed capacity per annum
(No. in '000)

Sales (1979-80) (Rs. in crores)

Reamers

185.6

11.08

Drills

7200

Tool bits

300

Gear hobs

Taps

580

Cutters

138

Micro metres

12   

The Machinery Manufacturing Corporation, established in Bombay in 1946, manufactures machinery required for textile, sugar, jute, paper and cement industries, and also for heavy industries like oil, mining, chemicals and other related industries. The Maneklal Manufacturing Company founded in Bombay in 1941 is a reputed manufacturer of textile machinery, as also industrial and consumers rubber, bakelite, leather, celluloid and plastic products. It has a factory at Saki Naka near Kurla.

The Advani Oerlikon Limited, established in 1951, is another reputed large manufacturer of machinery, electrical machinery and electronics in Bombay. It has factories at Bhandup, Kalina, Haybander, besides the units at Pune, Madras, Raipur and Visakhapatnam. The company manufactures a wide range of electronics and machinery. It is almost a pioneer in welding technology. It has research and development labora­tories at Bombay and Pune. Since 1951, welding was the main field of this company. But recently it entered in new fields like electronics, control systems, photocopying, power control, and power distribution machinery. The company manufactured about 103.70 million pieces of various articles in a latest year. (A State-wise Picture of Large Scale Industrial Activity, 1981.)

The Industrial and Agricultural Engineering Company has plants at Bhandup and Ahmadnagar for the production of boilers, industrial oil filters, water treatment plants, feed water heaters and other machinery. The value of sales of the concern was Rs. 6.96 crores in 1979-80. The Killick Nixon with a factory at Chandivli was established in 1948. It manufactures engineers' files, concrete prestressing equipment, vibrators, mixers, jacks, pumps and furnaces. Its sales were worth Rs. 9.73 crores in 1979-80. The New Standard Engineering Company with a plant at Goregaon manufactures drilling and threading machinery and blow room machinery. Its sales were to the tune of Rs. 10.52 crores in 1979-80. (Ibid)

The WMI Cranes Ltd., with a plant at Bhandup and another at Bangalore is a large producer of cranes.

There are many other concerns in this industry the information for which is not available. The latter half of the 19th century witnessed the growth of some English companies, while the industry received a real impetus during the Second World War. Many of the companies have foreign collaboration with reputed firms in the West.

The industry received a growth stimulus in the Second World War. The establishment of peace however, created conditions of slump in demand and foreign competition. The hardships were mitigated by Government by granting tariff potection from time to time. Further development of the industry was ensured by ban on imports of machinery. The industry derived immense benefits from Government protection against foreign competition. All-round growth of consumers and producers goods industries in the post-planning period accentuated the demand for machinery. This resulted into development of the industry during the last about 30 years.

The account of the various segments of the industry is given in the following pages. There is however a formidable difficulty in presentation of a statistical analysis of the various segments due to the grouping adopted in the Annual Survey of Industries. The particular method of grouping renders it difficult to present the statistical data for each segment.

MACHINE TOOL INDUSTRY

The Machine tool industry is an important one and its development is very necessary if the engineering industry is to play its correct role, not only in building up the infrastructure of the economy, but also in providing sufficient consumer goods to meet the demands of an expanding economy. Machine tools are basic machines which are used for making other machines. Hence the development of this industry is a pre-requisite for the growth of industrialisation. The history of growth of this industry can be traced to the Second World War prior to which the country used to import most of its requirements of machine tools. During the War it was felt necessary to manufacture machine tools in the country itself so as to meet the increasing demand. The requirements of new growing industries during the Second World War and the scarcity of supplies on account of curtailment of imports acted as a stimulus to the machine tool industry in Bombay as in India. The Machine Tool Control Order was passed in 1941 by the Government of India in order to ensure quality production of machine tools. The Government appointed a Machine Tool Controller primarily to secure supplies of the best quality of machine tools for the war industries. The Government of India also encouraged the development of this industry by placing orders with Indian firms and by inviting technical experts from the U.K. to guide the Indian firms, which resulted in an increase in indigenous production from Rs. 6 lakhs in 1942 to Rs. 1.12 crores in 1945. The real impetus to the development of the industry was however revived only after 1947. The Government of India after Independence helped the industry in tackling various problems relating to supply of raw materials, tariff protection, import regulations, Government purchases of machine tools, allocation of large quota of pig iron, steel and coal to the machine tool industry on priority basis, etc. In 1961-62, the Government annouced the inclusion of this industry among the priority industries for the grant of foreign exchange and for channelising foreign exchange assistance.

The position of the Indian industry as a whole improved with the incorporation of the Hindustan Machine Tools in the public sector in 1955. The decade after 1951 witnessed a considerable advance. During period of the Second Five Year Plan, large composite units in the private sector expanded. Foreign collaboration, both as regards capital and technical know-how, made rapid progress during the Second Plan Period. The industry registered a dynamic growth in the sixties. In the seventies it consolidated its achievements of the sixties and showed an increased rate of production. In 1979, machine tools valued at Rs. 154.4 crores were produced in the country. (Engineering World, February 1982)  The share of Bombay in this was quite high.

Bombay is one of the important centres of this industry and there are about 21 big companies manufacturing machine tools in this city. The machine tool factories provided employment to 2,371 persons in Bombay in 1973-74. The large-scale manufacturers in Bombay include companies of countrywide reputation, such as Godrej and Boyce Mfg. Co., Ralli-wolf, Kramps Hydraulik (India), Vickers Sperry of India. Indian Tool Manufacturing Limited, Investa Machine Tools and Engineering Co. Limited, Garlic Engineering, Siemens India Limited, Advani Oerlikon, Voltas Limited, Batliboi and Company Limited, Consolidated Pneumatic Tools Company, Schra-Scovill Duncan Limited, Greaves Cotton and Co., Electro Pneumatics, Dee-key Industries, Bharat Tool Mfg. Company Private Limited, Horstanann India Private Limited, Star Diamond Tools, etc.

Besides, there are several large-scale and small-scale units manufacturing graded and ungraded varieties of machine tools, metal working and wood working machine tools along with agricultural implements.

 The Godrej and Boyce Mfg. Co., established in 1897, the Indian Tool Mfg. Limited, established in 1937, the Investa Machine Tools and Engineering Co. Limited., established in 1942 and the Larsen and Toubro Limited, incorporated in 1946 are some of the pioneering concerns in Bombay. The Larsen and Toubro with a plant at Powai was established in 1938 as a partnership firm, was incorporated as a private limited company in 1946 and was converted into a public limited company in 1950. It manufactures food producing and processing machinery, general engineering plants, dairy and refrigeration machinery, machinery for bottling industry, agricultural machinery, and a wide range of machi­nery and equipment. The machine tool factories in Bombay manufacture a variety of machine tools including electric power presses, guillotine snears, geared press brakers, grinders, pneumatic industrial tools, pillar drills, hacksaw machines, power hammers, power presses, plate bending and plate straightening machines, shotblasting machines, welding machines, slitting and decoiling machines, scrap processing machines, electric tools, drills, sander, saws, blowers, carbide cutting tools, furnaces, foundry equipment, die sets, pumps and valves, tapping machines, diamond dres­sing tools, polishing and buffing machines, sheet metal working machinery, capstan lathes, wire nail making machines, flash butt welding machines, magnetic chucks, impact presses and a number of other tools. Production of machine tools encompasses a wide range of production processes like casting, welding, forging and machining in all of which metallurgical considerations are very important. The devices employed in machine tools are electrical, hydraulic and pneumatic. The controlling functions in a machine tool are done by electrical, electronic, oil, hydraulic, pneumatic, fluidic and numerical control devices, as also by mini computers.

As per the Annual Survey of Industries(The Annual Survey of Industries, Statistics for 1975-77 are not available.) in 1973-74, there were 35 machine tool manufacturing factories in Bombay which provided employ­ment to 2,371, persons, 1758 of them being workers. The fixed capital of these factories was Rs. 135.40 lakhs, while the working capital was Rs. 179.25 lakhs. Their total invested capital stood at Rs. 433.87 lakhs and outstanding loans at Rs.230.25 lakhs in the year under reference. Machine tools is a capital intensive industry requiring a higher degree of rationa­lisation and modernisation. Consequently the ratio of capital to employ­ment is very high. The total emoluments to employees in the concerns was to the tune of Rs. 163.95 lakhs which included payment of wages to workers, namely, Rs. 85.16 lakhs. The share of wages to workers in the total emoluments paid by the concerns shows that there is a preponderance of technocrats and managerial class of employees in this industry over the workers proper. The factories, as per the survey, consumed material worth Rs. 423.78 lakhs. The cost of fuel consumption was Rs. 12.01 lakhs, while the value of plant and machinery was computed at Rs. 136.99 lakhs. The total value of inputs was computed at Rs. 501.88 lakhs, while the value of output was Rs. 798.95 lakhs. The ratio of output to inputs was thus quite satisfactory. The value of products of the industry was to the tune of Rs. 753.05 lakhs, while semi-finished products were worth Rs. 199.51 lakhs. The value added on manufacture was of the order of Rs. 280.62 lakhs.

These statistics bring home the fact that the machine tools industry is a capital intensive industry, the share of labour in output being comparatively small. The ratio of value added to total inputs is also quite high.

The products of the machine tool industry are very diverse. There are over twenty major groups of machines, each divided into a number of sub-groups, types, sub-types and sizes. The products are marketed mainly to the engineering industries, railway workshops, ordnance depots and many other sectors of industry. The main raw materials required are pig iron, alloy and special steels, coke etc. which are acquired from indigenous sources. Formerly machine tools were imported from the U.K., U.S.A., East Germany, Czechoslovakia, U.S.S.R. and Japan. Now they are exported in large quantities. The share in exports of the Bombay factories is quite sizeable.

The machine tool industry faces many problems, such as, the quality of raw materials, the availability of accessories, and procedural matters and regulations which hamper growth. Most of the machine tool factories are well laid out, and have good equipment and buildings. They have good standards rooms with basic measuring equipment, the larger units having extremely well-equipped standards rooms.

Castings are reported to be of good quality and other raw materials are generally satisfactory. The quality of specialised materials such as steels, is however variable which presents problems of maintaining quality. The basic manufacturing processes and techniques are good, though a little old-fashioned. Many specialised parts and most precision compo­nents are imported. Most of the machines are of foreign design. Some of the machine tool factories are found to develop design ability and to train designers who may eventually be able to help the industry to become less dependent upon foreign collaboration.

After cessation of the war the industry suffered from foreign competition, and applied for tariff protection in 1946. The recommendations of the Tariff Board were accepted by the Government of India in July 1957. The protection granted was in the nature of restriction of imports. The Tariff Board felt that one of the methods to promote the development of the industry was  to increase the rate of tariff duty on the type of machine tools manufactured in the country, and to restrict the import of machine tools to meet only the pressing demand after taking into consideration indigenous production. Since it was felt that an increase in the import duty would inflate capital costs, the Government accepted the recommendation to restrict imports of such types of machine tools as were manufactured in the country. In fact the import of these machine tools was even completely banned.

It is observed that by Western standards productivity in the Indian machine tool industry is low, which is partly attributable to nature of the labour force and partly to dependence upon manual operations. The industry faces problems as regards the availability of certain accessories and prototypes. The Government have however allowed the import of prototypes for export-adoptation for the export market as well as for improvement in the existing models of machine tools. Many of the machines manufactured are of Western origin, while some of them are patently unsuited to the Indian pattern of use.

Many of the machine tool manufacturers appear to sell and service their products through agents, even in the home market. Machine tools are also exported from Bombay to the U.K., Europe, U.S.A., Sri Lanka, Middle East, South East Asia and Africa. The lower cost of the machine tools in Bombay as compared to that in European countries and the U.S.A. attracts foreign buyers. The Indian machine tool industry made a modest beginning in the export of machine tools in 1956-57, and the F.O.B. value of exports was Rs. 87,000 in 1956-57; Rs. 15.76 lakhs in 1961-62; Rs. 66.13 lakhs in 1966-67; Rs. 3,04.36 lakhs in 1971-72; and Rs. 2,12.60 lakhs in 1972-73.

The Indian Machine Tool Manufacturers' Association established in September 1946, claims to have played an important role in the development of this industry in Bombay as in India. It tackles various problems of the industry, particularly with regard to the supply of raw materials, tariff protection, import regulations, Government purchases of machine tools, demand surveys, rationalisation in production, etc. It sponsored a number of delegations to the international machine fairs from time to time and developed contacts with the manufacturers and users of machine tools abroad so as to facilitate an interchange of ideas and information and to promote export of machine tools. The Central Machine Tool Institute is established with the objective of helping the industry to develop on the right lines and in the right direction. It is planning to help the industry in the development of new designs, new technology and of training the personnel for better design and production.

The Indian Machine Tools Exhibitions (IMTEX) held from time to time are of immense value for fostering the growth of the Industry. The fifth All India Machine Tools Exhibition held at Vikhroli in Bombay in early 1982 was said to be the largest specialised exhibition of its kind ever held in India. More than 400 Indian manufacturers and about 125 overseas companies from 13 countries displayed their products in this exhibition which satisfied the highest international standards. Many foreign delegations from industrially advanced countries visited this exhibition. IMTEX-1982 reflected India's technological achievements in the machine tool industry, and Bombay was the proper venue for it.

COTTON TEXTILE MACHINERY

The cotton textile industry is the oldest and largest organised industry not only in Bombay but also in India. Mechanisation of cotton textile production in the country started in 1854 when the first mechanised textile mill was started in Bombay. The industry developed very rapidly during the last two decades of the 19th century and the first 45 years of the present century. The expansion, modernisation and periodic replacement of machinery by the cotton textile mills naturally increased the demand for machinery by cotton textile mills. The principal items of textile machinery in use in the early stages of the cotton textile industry were as under:—

(1) spinning machinery, blow room machinery, carding engines, drawing frames, blubbing frames, intermediate frames, roving frames and spinning ring frames, (2) weaving machinery like winding machines, warping machines and looms, and (3) processing and finishing machinery like jiggers, mercerising machines and calendering machines.

The machinery for the cotton mills in Bombay continued to be imported from England until about 1900, after which some continental countries including Germany, Switzerland, Holland and France exported machinery to Bombay. While the Lancashire machinery makers could secure fairly good business by direct correspondence with the Bombay millowners, they realised the advantages of having a local firm of influence and standing to represent their interests among Indian buyers of cotton textile machinery. This system continued quite for long. It was during the Second World War that it became difficult to procure machinery from abroad, and that a beginning was made in the manufacture of textile machinery indigenously. In the post-war period, several manu­facturers took up large-scale production of various items like spinning ring frames.

The Acme Manufacturing Co. Ltd., Bombay, was the first to manu­facture cotton textile machinery in Bombay. The first cotton textile machinery manufacturing unit in India was however established in Calcutta. The Acme Manufacturing Co. with a factory  at Wadala, commenced production of ring frames in 1947-48. In 1948 the unit had a capacity to manufacture 72 ring frames per year. Another unit manu­facturing cotton textile machinery, namely the Star Textile Engineering Works, was established in Bombay in 1948. (Handbook of Commercial Information, 1963.)

With an emphasis on fuller utilisation of installed capacity of mills and on replacement and modernisation of obsolete machinery, the necessity of modern and improved machinery was keenly felt in the period of the First Five Year Plan. This paved a way for considerable progress in the manufacture of textile machinery during the First Plan. The National Machinery Manufacturers, Bombay, which was incorporated in 1947, went into production of complete ring frames in 1954. (Ibid.) This concern was an important addition to the machinery industry. It further under­took the production of spare spindles and spinning rings. Its production of drawing frames, speed frames and reeling machines commenced in 1954 in Bombay.

Besides the pioneering concerns mentioned above, there are several manufacturers of cotton textile machinery in Bombay. They produce almost all kinds of machinery and equipment of the latest designs and qualities. In addition to major items of cotton textile machinery manufactured by the principal manufacturers, almost all spare parts and components are fabricated by other engineering firms.

It may be noted that the industry suffered from foreign competition in its embryonic stage. The prices and quality of imported goods lent a favourable position to the imports. The indigenous industry therefore applied for tariff protection to the Government of India. Tariff protection was therefore granted by the Tariff Board for the first time in 1949 and then in 1950, 1954 and I960, (Ibid.) during which years the rates of tariff were changed to suit the demands of the situation. Lately however the import of most of the cotton textile machinery has been banned, and there is no question of granting any protection in the case of such items.

The principal raw materials required by the industry comprise pig iron, mild steel, free cutting steel, hard drawn bright steel flats and bars, tin plates and coke. Formerly these materials were imported, but now they are available indigenously with the exception of a few special items which are imported in small quantity.

Certain items of machinery like combers, testing machines and single spindle automatic pirn winding machines were imported from Britain, U.S.A., West Germany, Netherlands and Japan upto the end of the Second Five Year Plan. Most of them are however indigenously manu­factured at present. The products of the industry are required mainly by the indigenous cotton mill industry. Exports of some items during the last about 25 years, have increased considerably.

It may be useful to give an account of a few concerns in this industry in Bombay. As mentioned earlier the Acme Manufacturing Co. was the pioneer in this industry in Bombay. The Maneklal Manufacturing Ltd., established in Bombay in 1941, has a factory near Kurla which manufactures a wide range of textile machinery. The Machinery Manufacturing Corporation produces textile machinery, besides other kinds of machinery, for sugar, jute, paper and cement industries. It was established in 1946. The Central India Machinery Manufacturing with a plant at Jogeshwari produces shuttles, picking sticks and other equipment.

The Maharashtra State Textile Corporation, a public sector under­taking for maintaining ' sick mills', manufactures spindles, looms, auto­matic looms and other accessories at Bombay, Solapur, Kolhapur and Aurangabad. The enterprise has many development projects in hand. Besides the machinery manufacturers, some of the cotton textile mills in Bombay have started production of the entire range of textile machinery. A mention may be made of some of them : Kohinoor Mills, Morarjee Goculdas Mill (Bhandup), Phoenix Mill, Piramal Spinning and Weaving Co., Podar Silks and Synthetics, Raghuvanshi Mills (Mahalaxmi), Rubi Mills, Sitaram Mills (Chinchpokli) and Tata Mills (Dadar).

The authorities of the Annual Survey of Industries have grouped the textile machinery and food industry machinery together. Hence it is difficult to give a statistical analysis of either of them separately.

INDUSTRIAL MACHINERY

Capital goods like industrial machinery constitute a vital sector of the national economy. Industrial machinery was imported entirely from the western countries upto the beginning of the Second World War. Manu­facture of industrial machinery began in the country during the war, when supplies from abroad were curtailed. Subsequently, the growing demand for machinery and plant arising from industrial growth coupled with the policy of self-sufficiency provided a stimulus to the progress of indigenous machine building industry. A beginning in this respect was made, towards manufacture of cotton textile machinery, and machinery for industries like sugar, tea, flour mills, vegetable oils, etc. This was followed by manufacture of machinery for chemical plants, solvent extraction plants, paper mills and cement factories.

A plant in Bombay manufactures complete cement plant machinery with foreign collaboration. There was no unit in the country producing complete cement plants at the beginning of the Second Five-Year Plan. (Handbook of Commercial Information,  1963.)The Larsen and Toubro and the Machinery Manufacturing Corporation (1946) are the producers of cement plants in Bombay.

The account of a few machinery manufacturers has already been given earlier.

TYPEWRITERS INDUSTRY

The growth of industries, expansion of trade and commerce and Government activity necessitated the quick disposal of the increasing volume of business and official correspondence. The growing correspondence and writing activity further accentuated the need for a machine that could help to transcribe as quickly as possible. Several attempts were made in the western countries in the previous century to devise a writing machine. According to the Encyclopaedia Britannica the invention of Christopher Latham Sholes and two other residents of the United States of America resulted into the first practical machine for writing in 1867. Messrs. E. Remington and Sons, the pioneers in this line of industry, took up the development and commercial manufacture of that machine in 1873.

Within a few years after the introduction of this machine in the U.S.A., the first typewriter was imported into India in 1896. The first portable typewriter was imported into the country in 1921, while the first electric typewriter, which was then a novel device was imported in 1925. (Handbook oj CommercialInformation, 1963.)

The first typewriter manufacturing industry in India is said to have been started in 1930 when assembly of the components of typewriters in the country commenced, and manufacture of some of the accessories was taken up. In spite of the intricacy involved in the manufacture of this machine the well-known steel fabricating firm of Godrej and Boyce in Bombay first undertook the job of manufacturing of the All India Type­writer. The credit was all the more greater because it was accomplished without asking for Government protection against imports. The birth of the Indian typewriter at a time when even established firms in the West were not in favour of manufacturing typewriters, stands testimony to the Indian ability to undertake such a high precision job. It is again remarkable to note that India was the first country in Asia to manufacture a typewriter.

It was after Independence that the industry providing for local fabrica­tion of the majority of the components, setting up of the necessary tool rooms for ensuring precision of tools, and training of technical personnel came into being. The Government of India encouraged the indigenous industry by curtailing imports. A phased programme for the indigenous manufacture commenced in 1952. (Ibid.) Besides the Godrej and Boyce of Bombay, two other companies, viz., Remington Rand of India, Calcutta and Rayala Corporation of Madras were granted licences for typewriter manufacturing. The fourth concern in this industry started production in the sixties. The Government of India banned the import of typewriters since July 1957 totally. Certain accessories for which Indian prototypes are not available are allowed to be imported. The machine requires alloy steel and ferrous and non-ferrous material, of which special alloy steel is required to be imported.

The installed capacity of the Godrej Company was to manufacture 12,000 English typewriters per annum in 1960, the indigenous contents of each machine being 95 per cent. The Company has increased its capa­city since then. It also manufactures vernacular typewriters in Marathi and Hindi languages. The company has modern machinery and technical know-how necessary for this industry.

SEWING MACHINES

Sewing machine is a product of light engineering industry. This industry is about 45 years old in India. The first unit in the laige-scale sector commenced production in 1937. (Ibid.) This unit was required to switch over to the production of certain munition items in 1939 as per directives of the Government of India. Its production of sewing machines during the Second World War was confined to meet the requirements of the Government. All of its products were diverted to meet the requirements of war. After the cessation of war, it was reorganised for production on a large scale. The industry was granted protection initially in 1947 which was withdrawn in 1955. (Ibid.)

Calcutta is the original home of the sewing machines industry in India. During the period of the First Plan there were only two organised units in Calcutta engaged in the manufacture of domestic sewing machines. Production of industrial sewing machines was started for the first time in the country in May 1952 at Calcutta. The industry grew very rapidly during the Second Five-Year Plan, the output of machines being nearly 2.5 lakhs in 1959 against the target of 2.20 lakhs during the Second Plan period. The progress of the industry from the fifties to the seventies continued to be impressive.

Almost all the components and parts required in the manufacture of sewing machines are being fabricated within the country. Except for some raw material of specific quality, all the material is now indigenously available.

The sewing machines industry in Bombay is mainly in the small-scale sector. The small-scale units assemble components or manufacture parts and spare parts. Some of them sell machines under their own trade names. A large proportion of the parts used by the large-scale units are manufactured by small-scale units. Of the 106 parts in a machine, about 94 are manufactured by small units. Even needles which were entirely imported upto the fifties are now indigenously manufactured.

Formerly sewing machines were imported from Western countries, the U.S.A. being the principal supplier. Indian sewing machines have improved so much in quality that large exports are now made to America, South-East Asia, the Middle East and Africa. Exports to countries like the U.K., Canada, West Germany, Belgium, Sri Lanka and Afghanistan are by no means small. There is a huge demand for sewing machines in the country, particularly in the urban and semi-urban areas. The increase in demand is attributable to growing urbanization, increase in incomes and diversification in fashions in clothing and garments.

DIESEL ENGINES

The diesel oil engine, which is an internal combustion engine, is named after Dr. Rudolf Diesel, a German inventor of the engine. Diesel engines like petrol engines belong to the prime mover group of machinery. A diesel engine obtains ignition from the heat generated by compression, while the petrol engine is a spark ignition engine. There are two broad categories of diesel engines, viz. horizontal slow speed type and vertical high speed type.

The first factory to manufacture diesel engine in India was established at Satara in 1932. The industry was developed by the Kirloskars in Pune in the late forties and early fifties. In the post-war period there was no restriction on imports, and diesel engines of foreign make were freely avai­lable in the country. This had an adverse impact on the indigenous growth of the industry. The liberal import policy, continued upto 1952, made it imperative on the part of the Indian Diesel Engine Manufacturers Associa­tion to persuade the Government to restrict imports. The Government agreed to grant protection to the industry in subsequent years.

At the end of the Second Five Year-Plan there were nine units in Maharashtra. Production of diesel engines prior to 1956 was linked exclu­sively to agricultural uses. They are used in agriculture for operating centrifugal pumps for irrigation. The uses of these engines are now diversified to various industries, flour milling, rice milling, electricity generation and processing industries. Besides the stationary diesel engines, mobile engines are used on an extensive scale in the automobile vehicles. With the sharp increase in the output of diesel trucks and cars, there was a rapid growth of the diesel engine producing industry.

The Premier Automobiles, Bombay, obtained its requirements of diesel engines from the Automobile Products of India, Bombay. With an increase in demand for road rollers, trailers, tractors and auto­mobiles, the industry has grown considerably during the last about 25 years. The types and sizes of stationary diesel engines produced are singular cylinder horizontal engines, single cylinder vertical engines, and multi-cylinder vertical engines. Engines of higher power are now required for use in road rollers, air compressors, stone crushers and similar machinery.

A micro-level information about the industry in Bombay is not available.

The principal raw materials required for this industry are pig iron, Martin's acid steel, alloy steel, white metal, etc. which are available indigenously. While imports of diesel engines are prohibited, the stationary diesel engines are exported to Bahrein Islands, Burmah, Sri Lanka, Cambodia, Iran, Iraq, Phillippines, Thailand, and many countries in the middle east and south-east Asian countries. (Handbook of Commercial Information, 1963).  The Victoria Jubilee Technical Institute in Bombay has its own heat treatment unit and testing department which helps the industry in quality control and various aspects.

The Automobile Products of India with a factory at Bhandup produces automotive diesel engines. The Lakshmiratan Engineering Works established in 1946 manufactures diesel engines and textile machinery in Bombay.

TRACTORS AND EARTHMOVING MACHINERY

Tractors and earthmoving machinery industry is of recent growth in Bombay. The International Tractor Company of India, which is a subsi­diary of the Mahindra and Mahindra was established at Kandivli in 1963 in collaboration with a U.S.A. firm from Chicago. It commenced production of agricultural tractors in 1966. It exported about 1,000 tractors and 600 agricultural implements between 1966 and 1976 to Turkey, Zambia, Kenya, Tanzania, Uganda, Somalia, Muscat, Indonesia and Nepal. The Larsen and Toubro is a large manufacturer of earthmoving and agricultural equipment. It was established in 1938. The Tractor Engineers Limited, established in 1952, has a factory at Powai which produces track and under-carriage parts for crawler tractors and also parts for agri­cultural and earthmoving machinery in collaboration with an international concern in the U.S.A. (Bombay Chamber of Commerce Directory, 1976).

ROAD ROLLERS

Road rollers were manufactured in the country during the Second World War, but thereafter there was a break. The industry was originated in West Bengal. A firm in Bombay was licensed to manufacture road roller chassis for use with an agricultural tractor of 4.5 tons capacity. The firm went into production in 1956. (Handbook of Commercial Information, 1963)

POWER DRIVEN PUMPS

Power driven pumps are used generally for pumping liquids by centrifugal force. The first attempt to manufacture power driven pumps in India was made in 1925, but the industry did not make much progress till the Second World War. The post-war impetus to agricultural production, however, enabled the industry to develop rapidly. Development of irrigation and lift irrigation under the various development plans gave a further impetus to pump manufacturing.

The raw materials required by the industry comprise ferrous materials including pig iron for base plate and pump body and mild steel for shafts and keys, and non-ferrous materials such as gun metal for impellers and bushings. Centrifugal pumps are exported to middle east countries.

Top

TRANSPORT EQUIPMENT

Transport equipment manufacturing has emerged as an important sector of industry in Bombay. This sector which can broadly be cate­gorised as a part of the engineering industry underwent a process of accelerated growth ever since the development of automobile and ship building and repairing industries in Bombay. The transport equipment industry is conceived to comprise various sub-sectors manufacturing motor vehicles, motor cycles, scooters, ship building and repairing, loco­motives, railway wagons, coaches, and other rail-road equipment, bicycles, cycle-rickshaws, air-craft components, bullock-carts, push carts, hand carts and other types of transport equipment and parts thereof. This classification accords with that adopted by the authorities of the Annual Survey of Industries.

The structure of the transport equipment industry in Bombay is analysed below on the basis of the statistics compiled under the Annual Survey of Industries in the period 1975-77. The figures represent annual averages for the survey period. This industry in Bombay comprised 223 registered factories which constituted 66.17 per cent of the factories in the industry in Maharashtra. They provided employment to 33,754 persons who formed 58,38 per cent of the employment in the State. The invested capital in the transport equipment factories in Bombay was computed at Rs. 87,53 lakhs or 29.90 per cent of that in the Maharashtra industry. The output of the Bombay factories, computed at Rs. 1,74,93 lakhs, constituted 52.72 per cent of output in Maharashtra. The value added on manufacture by the industry in Bombay was of the order of Rs. 49,84 lakhs or 54.49 per cent of the total industry in the State.

The above analysis brings home the fact that the percentages, in respect of invested capital, output, value added and employment in the Bombay factories to the factories in Maharashtra were not commensurate with the percentage of number of factories in this city. It can therefore be deduced that the factories, or at least a section among them, in Bombay may be comparatively smaller in size. The more plausible deduction however can be that the miscellaneous sub-sectors of the Bombay industry may be consisting of smaller units. This might be more so because the principal or large units manufacturing automobile vehicles, ship building and railway rolling stock are located in Bombay.

The detailed statistics about the transport equipment industry in Bombay as per the A.S.I, of 1973-74 and 1975-77 are analysed below. The figures are annual averages of the years under the Survey.

TABLE No. 12
MANUFACTURE OF TRANSPORT EQUIPMENT AND PARTS IN BOMBAY

(Rs. in lakhs)

                        Item

1973-74

1975-77

No. of estimated factories

272

223

All workers

44,410

25,061

All employees

54,463

33,754

Man-days worked

N.A.

99,32,467

Fixed capital (Rs.)

38,31.23

32,04.95

Working capital (Rs.) ..

23,69.17

17,58.83

Capital investment (Rs.)

1,49,84.14

87,52.81

Outstanding loans (Rs.)

49,25.96

59,87.61

Wages to workers (Rs.)

25,64.74

19,65.35

Total emoluments (Rs.)

37,26.61

34,86.09

Fuel consumption (Rs.)

3,47.86

4,85.12

Material consumed (Rs.)

1,06,01.84

1,00,61.72

Other inputs (Rs.)

N.A.

16,15.46

Total inputs (Rs.)

1,19,63.19

1,21,62.30

Plant and machinery (Rs.)

61,05.04

51,74.14

Products

1,34,20.25

1,51,76.40

Other output

N.A.

23,16.77

Total output

1,78,57.30

1,74,93.17

Depreciation

3,95.81

3,46.83

Value added on manufacture

54,98.30

49,84.03

Factory payments

N.A.

9,55.04

Net income

N.A.

40,28.99

Some conclusions are imminent from these statistics. There was a general decline in the industry in Bombay over the period from 1973-74 to 1975-77. The recession was more conspicuous in respect of number of factories, employment and capital investment. The rise in outstanding loans during 1975-77 is also symptomatic of a recession. The rise in value of total inputs in 1975-77 might be due to other factors not covered in the statis­tics. Though the value of total output receded in 1975-77, the value of products showed a pronounced rise. It can also be observed that the value added on manufacture compared very favourably with the fixed capital and working capital. The figures of total output and total inputs read along with the value added show the profitability of the industry.

The automobile industry which comprises manufacture of motor vehicles, motor cycles and scooters is the most important segment of the industiy, which is followed by ship building and repairing, railway rolling stock and bicycles and cycle-rickshaws. The historical account of develop­ment of the various sectors of the industry is given in what follows.

AUTOMOBILE INDUSTRY

The automobile industry is one of the most sophisticated and developed industries in India. It is regarded as the cardinal indicator and a pace setter for economic development in the country. It gives all-round boost to production of other industries. This industry provided direct employ­ment to 57,000 persons in 1974-75. Besides, there is tremendous additional employment provided in the automobile ancillaries, allied industries and services. The importance of the industry to the Indian economy lies in its being, firstly, an important industry in itself, giving direct employment to a large number of workers and turning out finished products worth huge amounts; secondly, a parent industry utilizing the products of other industries; thirdly, a reserve arsenal of the nation, which can be geared to defence requirements during war; and fourthly, a provider of the most important means of modern transport. It has an immense potential of generating national income, and substantially increasing employment and national productivity. Moreover, it offers a bright scope for training and creation of a cadre of highly skilled technicians and technocrats for manning various industries.

The automobile industry accelerates the development of other industries as it requires the products of other industries such as steel and metal alloys; components such as pistons, piston rings, cylinder liners, gudgeon pins, gaskets, oil seals, valves, brake linings and clutch discs and wheels; and ancillary requirements such as sparking plugs, batteries, electric bulbs and wires, tyres and tubes, paints, and upholstering material. Besides, automobile vehicle users require petroleum products, servicing Stations, repair workshops, spare parts, etc

India is today one of the few automobile manufacturing countries in the world, and is the only one in continental Asia.

The first motor car was imported into India in 1898. Thirty years later a factory set up in Bombay by General Motors India Ltd. began to assemble cars and trucks for the first time with imported components. The General Motors India which was then a subsidiary of the General Motors of the U.S.A. was established in 1928, and is generally considered to be the pioneer of assembly operations in India, although another firm viz., Mackenzie and Company claimed to have started assembling cars and trucks in Calcutta earlier than General Motors. (Handbook of Commercial Information, 1963) The Ford Motor Company of India commenced assembly of automobiles at Madras in 1930. Prior to the Second World War the combined production capacity of General Motors and Ford Motors was 96,000 units per annum. About two decades afterwards two Indian concerns in the private sector laid the foundations of the indigenous automobile industry by taking up simultaneously company knocked down assembly of motor vehicles and manufacture of vital automobile components, under technical collaboration arrangements with foreign manufacturers. The subsequent period witnessed the enormous growth of the industry and the establishment of several ancillary industries, agencies for distribution of cars, the setting up of repair and service shops, installation of assembly plants, and growth of the manufacture of body panels for commercial vehicles.

The history of the indigenous automobile industry in India can be traced to the year 1942 when a limited company was floated at Calcutta to manufacture vital parts of a motor vehicle such as the engine, gears, rear and front axle. The history of the automobile industry in Bombay however, begins from 1944 in which year the Premier Automobiles Ltd. was registered under the Indian Companies Act with an authorised capital of Rs.10 crores which was subsequently raised to Rs. 25 crores. It went into production in 1947. This company was followed by two esteemed companies at Bombay, viz., the Mahindra and Mahindra Limited, which was established in October 1945 and started production in 1949, and the Automobile Products of India Limited, established in 1949, which went into production in 1955. It is noteworthy that the automobile industry in India comprises eight approved vehicle manufacturers, such as (i) Premier Automobiles, Bombay; (ii) Mahindra and Mahindra, Bombay; (iii) Automobile Products of India, Bombay; (iv) Hindustan Motors, Calcutta; (v) Tata Locomotive and Engineering Company (registered Office at Bombay but factories at Pune and Jamshedpur); (vi) Ashok Ley land, Madras; (vii) Standard Motors Products, Madras, and (viii) Simpson and Company, Madras. The annual assembling capacity of the six approved manufacturers of vehicles as in 1956-57 was as follows:—

Premier Automobiles

18,000

Mahindra and Mahindra

4,800

Hindustan Motors

18,000

Standard Motor Products of India  

6,000

Tata Locomotive and Engineering Co

7,500

Ashok Leyland

1,500

 

55,800

The Mahindra and Mahindra, Premier Automobiles, Automobile Products of India, Ramon Engineering Ltd., Hindustan Ferodo and Gabriel India are the principal automobile manufacturers in Bombay. They manufacture medium and light commercial vehicles, cars, jeeps, scooters, auto-rickshaws, tractors, forgings, gears, radiators etc. The statistics of production of automobile vehicles by the Mahindra and Mahindra, Premier Automobiles, Automobile Products of India and Ramon Engineering in four years are furnished below:—

Item

1976

1977

1978

1979

Passenger cars

14,973

17,481

12,931

11,550

Jeeps

6,847

9,584

11,010

12,340

Commercial vehicles

3,551

2,834

2,618

4,163

Scooters

32,986

21,610

26,722

26,338

Three Wheelers

3,320

878

2,049

3,376

Mopeds

25

487

945

2,225

Tractors

6,348

1,932

7,007

9,405

There were 130 factories manufacturing motor vehicles, motor cycles, scooters and parts thereof, in Bombay in 1973-74 which increased to 145 in 1975-77. As per the Annual Survey of Industries, this industry provided employment to 20,917 employees of whom 15,898 were workers in 1973-74. The employment decreased to 19,088 including 13,695 workers in 1975-77. The industry worked for 55,89,858 man-days per annum during 1975-77. This is a capital-intensive industry and had a total capital investment amounting to Rs. 59,28,23,600, while the fixed capital and working capital were Rs. 21,34,47,100 and Rs. 13,21,05,000, respectively in 1973-74. The capital investment in the automobile industry in Bombay increased to Rs. 66,87,32,000 in 1975-77, while the fixed capital and working capital in the same period amounted to Rs. 24,40,22,000 and Rs. 13,16,31,000. The loans outstanding on the factories in 1973-74 amounted to Rs. 36,03,90,200 which increased to Rs. 44,32,11,000 in 1975-77. The 130 factories in 1973-74 paid Rs. 10,38,93,600 to workers by way of wages, while the total emoluments to all employees amounted to Rs, 17,25,00,700. The wages paid to workers by the 145 factories in 1975-77 increased to Rs. 11,04,16,000, while the total emoluments to all employees was to the tune of Rs. 20,23,76,000. This rise can very well be attributed to escalation of money wages over the period of comparison.

The factories are operated mainly on electricity and crude oil, the total consumption of which was valued at Rs. 2,25,10,600 in 1973-74. The value of fuel consumption increased to Rs. 3,56,50,000 in 1975-77. The raw materials utilised by them were worth Rs. 73,76,96,400 in 1973-74 and Rs. 78,91,04,000 in 1975-77. The value of plant and machinery in the indus­try was estimated at Rs. 26,99,00,100, while the value of total inputs was Rs. 82,34,16,900 in 1973-74. The value of total inputs of factories covered by the Annual Survey of Industries of 1975-77 was Rs. 94,72,05,000, the value of plant and machinery increasing to Rs. 34,10,32,000. The value of production in the automobile industry in Bombay as classified by the Annual Survey of Industries in 1973-74 and 1975-77 is given below:—

Item

1973-74

1975-77

 

(Rs.)

(Rs.)

Products

1,12,65,08,800

1,20,09,63,000

Net value of semi-finished goods

1,14,88,200

9,25,72,000

Total output

1,15,13,16,300

1,29,35,35,000

Value added on manufacture

29,93,80,500

32,02,45,000

An amount of Rs. 2,85,18,900 was accounted for as depreciation in 1973-74 which decreased to Rs. 2,60,84,000 per annum in 1975-77. The net income of all the factories was computed at Rs. 24,89,06,000 per annum in 1975-77.

It will be of great interest to further study the automobile industry of Bombay at the micro-economic level. An attempt is made below to give an account of the large-scale units within the limitations of data constraints.

The Premier Automobiles Ltd. commenced production in 1947 with the assembly of about 3,000 vehicles per annum consisting of Desota, Dodge and Plymouth Cars and Dodge/Fargo Trucks under an agreement with a foreign concern, viz., Chrysler Corporation of the U.S.A. The assembly of motor cars under this agreement was, however, suspended in 1956 in accordance with government policy in the matter. The company started production of Fiat cars in collaboration with an Italian company namely Fiat Societa Per Azioni in 1950. Besides these ventures, the company undertook manufacture of axle and components, diesel engines arid shock absorbers under technical collaboration with some renowned firms in the U.S.A. and the U.K. Manufacture of components like propeller shaft and universal joint, exhaust pipe, radiators, and leaf springs was taken up in 1949.

All these technical collaboration agreements, however, have now expired and the Premier Automobiles Ltd. manufactures its products under its own trade name 'Premier'. Accordingly it now manufactures, (i) passenger cars, (ii) petrol commercial vehicles, (iii) diesel commercial vehicles, (iv) petrol industrial engines, (iv) diesel industrial engines, (vi) diesel marine engines, (vi) room air-conditioners and (vii) ERW steel tubes.

The Premier has its main assembly plant at Kurla, a mechanite castings foundry at Wadala in Bombay and a stamping plant at Dombivli in Thane district. It provided employment to 9,485 persons of which 7,476 were in the Kurla plant, 923 in the Wadala plant, and 1,086 in the Dombivli unit in 1972-73. The plant at Kurla provided employment to 9,140 persons of whom 6,089 were daily rated and 3,051 were monthly rated employees on 31st December 1976. During the year ending with June 1976 the company produced 14,520 vehicles. The production and sales of vehicles during 1974-75 and 1975-76 are given below(Annual Report 1975-76 (published), The Premier Automobiles Limited.):—

Item

1974-75

1975-76

Produc­tion

Sales

Produc­tion

Sales

Cars

14,753

14,928

12,229

12,272

Drive-away chassis

169

162

40

34

Diesel trucks

3,784

3,516

2,151

2,245

Petrol trucks

177

284

100

97

Total

18,883

18,890

14,520

14,648

The quantum of production and the value of the products of the Company inclusive of vehicles and other articles in 1969-70 and 1972-73 is given below:-—

Item 

1969-70

1972-73

Quantity
(No.)

Value
(Rs. in lakhs)

Quantity
(No.)

Value
(Rs. in lakhs)

Cars

12,083

16,05.41

13,192

20,31.10

Drive away Chassis

..

..

1,202

1,91.14

Commercial Vehicles

3,957

12,61.35

3,519

13,54.53

Industrial Engines

231

21.04

406

41.42

M.S. Tubes

10,16,806 (Metres)

24.19

10,02,132 (Metres)

50.75

Air-conditioners

2,325

53.89

1,502

42.78

Factory made components

.....

58.75

....

81.51

Total

 

30,24.63

 

37,93.23

The company exported goods worth Rs. 22.71 lakhs in 1975-76 as against Rs. 30.70 lakhs in 1974-75. The products are mainly exported to various countries in Gulf area, Mauritius, Bangla Desh, Sri Lanka etc. The reported total income was Rs. 51.70 crores as against the total expenditure of Rs. 51.53 crores during the year ending June 1976. Its capital investment stood at Rs. 1,030.40 lakhs (subject to arrears of depreciation amounting to Rs. 395.80 lakhs) as on June 30th, 1976.

The production of vehicles (No.) by the Premier in 1976 to 1979 is given below (Automan India, 1981,   Association   of    Indian   Automobile   Manufacturers (Published).):—

 

Type of Vehicle

Year

1976

1977

1978

1979

Passenger Cars

14,973

17,481

12,931

11,550

Commercial Vehicles

2,319

1,881

1,264

1,079

 

The value of turnover of the Premier in 1979-80 was reported as under:—

Item

Value

Item

Value

(Million Rs.)

(Million Rs.)

Cars

425

Other items

38

Commercial Vehicles    

103

Other income

23

Total (Value Million Rs.)

589

The Mahindra and Mahindra Limited which was established in October 1945 and started production in 1949, is a pioneering concern manufac­turing Jeeps. The assembly of Jeeps commenced in India on June 3,1949 after a market for Jeeps was firmly established in the country. The components were imported from the U.S.A. in completely knocked down condition, while accessories such as tyres, tubes, batteries and a few other items were procured locally. The indigenous content of the built-up Jeep was increased progressively during the subsequent period. It was in 1955 that the company commenced a phased manufacturing programme in technical collaboration with a U.S.A. company viz., Willys Overland Export Corporation, and their successors Kaiser Jeep Corporation. In conformity with the target envisaged in the Second Five-Year Plan, the Government of India sanctioned, in August 1958, an increase in the company's licensed manufacturing capacity to 5,500 Jeeps per annum. A further licence was granted to the company in 1961 for increasing its capacity to 10,000 jeeps per annum, by 1965-66. The present licensed capacity is for 25,000 jeeps inclusive of 5,000 forward control trucks and 5,000 utility vans.

The company started production at its plant at Mazagaon which was expanded and developed subsequently by shifting to the spacious factory at Kandivli. In order to achieve economy in production the Automotive Division of the company was divided into six units, viz., (i) Jeep Unit, (ii) Engine Unit, (iii) Foundry, (iv) Marketing, (v) Truck and Station Wagon Unit, and (vi) Research and Development Centre. The First three of these are situated at Kandivli, the fourth at Worli and the last two at Ghatkopar. It is also developing an assembly plant for utility vans and trucks at Nasik. In order to yield economy in fact and yet retain its multi-purpose utility, the design of the Jeep and Truck was developed and changed from time to time since 1966. The company at present manufac­tures jeeps, jeep-trucks, station wagons and industrial engines. The volume of production in some years is given below :—

 

Year
(Nov. to Oct.)

Production
(No.)

Year
(Nov. to Oct.)

Production
(No.)

1949-50

289

1969-70

10,168

1959-60

6,482

1972-73

14,216

The production of vehicles (No.) of this concern in 1976, 1977, 1978 and 1979 is given below (Automan India, 1981):—

Type of Vehicles

Year

 1976

1977

1978

1979

Jeeps  

6,847

9,594

11,010

12,340

Commercial vehicles

1,232

953

1,354

3,084

Tractors

6,348

1,932

7,077

9,405

The value of turnover of the company during the year ending with October 1979 was as under: (Ibid)

Item

Value (Million Rs.)

ltem

Value (Million Rs.)

Jeeps

587

 Other items

94

Commercial vehicles

156

 Other income

154

Tractors

448

 

 

Total value (Million Rs.)

1,439

Besides meeting the indigenous demand for jeeps, the company exports the vehicles to Bangla Desh, Sri Lanka, Jordan, Nepal, New Zealand, Yugoslavia as also to U.N. Organisations like UNICEF and WHO.

It provided employment to 6483 workers as on October 30, 1973, while its capital investment stood at Rs. 19,78.35 lakhs on the same date. It reported its gross income as Rs. 49,70,74,380 and expenditure as Rs. 46,85,21,317 during 1972-73. It procures its raw materials from indigenous steel plants as also from Japan, U.K., West Germany, Australia etc. against global orders.

The International Tractor Company of India, an associate company of Mahindra and Mahindra manufactures diesel tractors suitable to Indian soil conditions. The regular production of tractors at the factory at Kandivli started in April 1966 with an indigenous content of 51 per cent, which was increased to 80 per cent. The company has an installed capacity to manufacture 10,000 tractors per annum.

The Automobile Products of India Limited which was established in 1949 and commenced production in 1955, is one of the pioneering manufacturers of scooters, Lambrettas and three wheelers in India. The Automobile Products of India Limited, Bombay, original formed for the purpose of manufacturing automobiles gave up the project later and obtained permission to manufacture Lambretta motor scooters besides diesel engines and automobile components. It went into production in August, 1955 in collaboration with an Italian firm, acquiring an actual capacity of 6000 scooters upto the end of 1955.

Now it has an installed capacity to manufacture 48,000 vehicles per annum. Besides scooters, it manufactures three-wheeler vehicles, Fly Wheel Magnetos for Scooters under collaboration with another Italian company. It has technical collaboration with two West German concerns as well. Besides the main plant at Bhandup in Bombay, it has factories at Aurangabad, Nagpur and Lucknow. It provides employment to about 3282 persons, of which about 1952 employees are in the Bhandup plant. It uses mainly indigenous raw materials, procured from suppliers of machines and plants, while some material is also imported.

In 1981, the Automobile Products of India(Information supplied by the company.) put 21,527 scooters and 5,868 three-wheelers on the road. The sale of its ancillaries division amounted to Rs. 9.3 crores. It achieved a total sales turnover of Rs. 27 crores in 1981. The value of products and exports of the Bhandup Plant in 1980 and 1981 is given below:—


(Rs. in lakhs)


Item

1980

1981

 

Products

Exports

Products

Exports

Scooters

1,147

1.08

1,112

0.83

Three-Wheelers

388

3.30

589

6.92

Spares

75

0.29

64

0.34

Total 

1,610

4.67

1,765

8.09

The number of Scooters and three-wheelers produced by the Automobile Products of India is given below:— (Automan India, 1981.)

 

 

1976

1977

1978

1979

Scooters

32,986

21,610

26,722

26,338

Three-Wheelers

3,320

878

2,049

3,376

Scooters are highly in demand all over the country. The demand in fact out-strips supply. The principal buyers for three-wheelers are autorickshaw operators and operators of delivery vans.

The Ramon Engineering Limited, the details for which are not avail­able, is mainly engaged in the manufacture of moped vehicles. It manufactured 25 mopeds in 1976, 487 in 1977, 945 in 1978 and 2,225 in 1979.The Gabriel India which was commissioned into production at Mulund in 1960 manufactures automobile accessories such as shock absorbers, engine bearings, etc. Its turnover amounted to Rs. 60 millions in the year ending May 1980, while it employed 470 persons in the same year.

The Hindustan Ferodo, a comparatively larger unit manufacturing brake linings, clutch facings and other auto parts, started production in 1949 at Ghatkopar. Its turnover during the year ending with December 1979 amounted to Rs. 185 millions of which goods worth about Rs. 5 millions were exported. It provided employment to about 2,188 persons in the same year. (Automan India, 1981)

Besides, there are many other factories manufacturing automobile spare parts and accessories. Most of them are young industries established in the sixties and seventies of the century.

The automobile industry in Bombay as in India suffered from a demand recession in 1975-76 which slumped the sales and production of cars and commercial vehicles. The severe inflationary trends which prevailed in the preceding years had substantially put up the cost of cars. The situa­tion was aggravated by increase in taxation. High price of petrol also seriously restricted the demand for vehicles. The anti-inflationary mea­sures taken by Government checked a further rise in cost of manufac­turing. However the entire situation was such that the demand for auto­mobiles slumped considerably. As a result, cars and other vehicles for which there used to be a waiting list for several years, became available off-the-shelf. Road transport business was also adversely affected due to the recession in the economy and competition from railways. This affected the demand for and production of commercial vehicles in 1975-76. The industry was therefore found to take stringent cost reduction measures in order to survive the crisis. Steps were also taken to utilise the available plant capacity by increasing the manufacture of components which were hitherto being purchased from outside. The recession in the automobile industry had an adverse impact on the ancillary industries as well. The recessionary trend was however reversed and there was revival of demand from March 1976. Almost all the companies were operating at full capacity from 1976. Some of the companies intensified research and development activities from 1976 in order to improve the quality of products, to design and develop new products to meet the market requirements and competition, and to achieve cost reduction. The designs of a few vehicles were also developed to meet export market requirements.

During the last about 4/5 years the automobile industry of Bombay has made rapid progress in the field of exports. The export performance of the principal manufacturers in  Bombay can be judged  from  the following statistics :—

 

Manufacturer and Products

Commercial Vehicles
(Rs. in thousands)

 

1977-78

1978-79

1979-80

Premier Automobiles—

 

 

 

Trucks

368

1,177

519

Buses

5,155

3,345

2,162

Bus Chassis

605

871

....

Deemed Exports          ..

718

125

1,806

Total  

6,846

5,518

4,487

 

Mahindra and Mahindra-

 

 

Jeep type trucks

890

1,160

390

Jeep trucks CKD

1,180

..

2,290

Deemed Exports

3,100

4,000

5,700

Total    ..

5,170

5,160

8,380

 

Two and Three Wheelers

Automobile Products of India-

 

 

Scooters CBu

7

65

140

3-Wheelers

407

130

401

Total    ..

414

195

541

Passenger Cars

Premier Automobiles -

 

 

Cars

246

113

1,886

Deemed Exports

241

76

174

Total    ..

487

189

2,060

Jeeps

Jeeps

 

 

 

Mahindra and Mahindra—

 

 

 

Jeeps CBU

2,040

6,230

5,620

Jeeps CKD

2,780

450

2,370

Deemed Exports

11,000

30,600

31,200

Total    ..

15,820

37,280

39,190

Source.Automan India, 1981.

The main problems of the automobile industry in Bombay as in India are the mounting cost of production, non-availability of suitable materials the high cost of maintaining a car and growing consumer resistance, The steep hike in the price of petrol since 1973 has given a severe jolt to the industry.

It is however felt that there are better prospects for the growth of the industry, particularly in view of the rapid growth of the economy and the prospective demand for cars, commercial vehicles, jeeps and buses. The realization of the prospective growth depends upon realization of the economies of large-scale production, rationalization and export incentives.

It will be interesting to furnish below ("Focus on Automobile Industry". An article by President of the Association of Indian Automobile Manufacturers, in the Financial Express, June 25, 1977.) the statistics of production of automobile vehicles and other ancillary products in India:—


(APRIL-MARCH)

Type of Vehicles

Actual Production in

Development Council's Production Targets for

1974-75

1975-76

1976-77

1977-78

1978-79

Passenger Cars

31431

21777

36490

35000

40000

Jeeps

9628

7133

8365

9000

10000

Comml. Vehicles

40649

43764

46422

60000

66500

Scooters

88356

112550

156854

250000

300000

Moter-cycles

61222

70105

72462

88000

100000

Mopeds

31911

34265

34458

80000

100000

Three-Wheelers

12210

13278

20037

31000

40000

Tractors

31101

33267

33145

45000

52000

Automotive Ancillaries

210

252

265

380

500

Note.—Except the last item which is given in crores of rupees, all other figures are in numbers of vehicles.

It may be recalled that the Tariff Commission in 1953 had recommended that only those firms which had a manufacturing programme should be allowed to assemble vehicles in the country. The Government of India had accordingly recognised five manufacturers of vehicles in India, including the Premier, and the API of Bombay. The Government had also recognised the Mahindra and Mahindra of Bombay for the assembly of jeep type vehicles. The Tariff Commission in its 1956 Report had recommended inter alia that high priority should be given to the manufac­ture of commercial vehicles rather than to passenger cars, and that efforts should be made to meet the anticipated increase in the demand for diesel commercial vehicles. The commission had recommended tariff protection to the industry for a period of ten years an enhancement of revenue duties on essential components. The recommendations were accepted with the exception that the method adopted was to convert the then existing revenue duties into protective levies.

The Government of India had set up in 1959 an Ad-hoc Committee under Mr. L. K. Jha which inter alia estimated the percentage of indi­genous contents in the vehicles manufactured by various companies. Measures were taken up for increasing the indigenous contents of all vehicles with the goal of import substitution. According to the Programmes of Industrial Development (1961-66), the indigenous contents of the vehicles have been steadily rising since the Ad-hoc Committee Report in early 1960, and it visualised that the same will rise upto 90 per cent by the end of the Third Plan. They rose up further recently.

In 1962-63, the main export markets for Indian cars were Pakistan, Singapore, Cambodia and Saudi Arabia, and for chassis, bodies, frames and parts, Viet Nam and Sudan. (Handbook of Commercial Information, 1963.)

AUTOMOBILE ANCILLARIES

An automobile factory is usually a composite unit where, in addition to the assembly of a complete vehicle, manufacture of some of the essential components and machinery of a few other components is also under­taken. They generally produce major components, and buy from the ancillary industries parts and accessaries worth more than half the ex-factory price of the complete vehicle. Normally the ancillary sector manufactures some engine, transmission and frame components like pistons, piston rings, fuel pumps and nozzles, radiators, valves, clutch assembly, brake assembly, shock absorbers and springs, and all other electrical components, rubber and asbestos parts, body fittings and a number of miscellaneous accessories.

When the automobile industry was first established in India, the ancillary industry was in an underdeveloped stage. There was, at that time, some production of a few rubber components, electrical equipments and body components. As per the report of the Tariff Commission of 1953, "only a nucleus " of the ancillary existed in India at that time.

The Premier Automobiles, Bombay, one of the principal manufacturers of automobiles, has been manufacturing radiators since 1949, mostly for its own consumption. The Teksons Pvt. Ltd., Bombay, came into the field in 1960. The Bharat Radiators Pvt. Ltd. commenced production of automobile radiators and components in 1959. It has its factory at Santacruz near Vidyanagari which employs about 166 workers. Its annual turnover is worth about Rs. 18 millions (1979-80). (Automan India, 1981). The Fuel Injunction Ltd., Bombay, commenced production of nozzles in 1956, and of elements in 1957. The industry was confronted with foreign competition in its initial stages of growth. This made it imperative on the part of the Government of India to grant tariff protection upto the end of 1963.

Commercial production of clutch assemblies was commenced in Bombay by the Automobile Products of India in 1957 with an annual production capacity of 15,000 units. The Asbestos Magnesia and Friction Material Ltd., Bombay, with an annual production capacity of 1,08,000 numbers started manufacturing clutch facings or discs in 1956. This was the only unit in India producing clutch assemblies on a commercial scale till the end of the Second Five-Year Plan. (Handbook ofCommercial Information, 1963.)

Production of brake linings was commenced in 1956 by the Automobile Products of India and the Asbestos Magnesia and Friction Material Ltd. in Bombay. The total capacity of the two units was 3744 thousand feet of brake linings at that time. The Hindustan Ferodo manufactures brake linings and clutch facings on a large-scale in Bombay. It has its factory at Ghatkopar which commenced production in 1949. It employs about 2,188 employees and has a turnover worth about Rs. 18.5 crores per annum. Its products are exported to foreign countries. In the manu­facture of hydraulic brake assembly, the Automobile Products of India was the only firm in India producing this essential item which commenced production in 1957. (Ibid.)

The Premier Automobiles, Bombay, took up production of leaf springs in 1949. This was the second firm in India to manufacture this item, the first unit being started at Kapurthala in 1948. The Metropolitan Springs Ltd. Bombay, which commenced production in 1952 was the second manufacturer of leaf springs in Bombay.

Shock absorbers constitute an important component in an automobile vehicle. The manufacturing of shock absorbers was undertaken in India by the Premier Automobiles, Bombay, and another firm in Madras in 1956, prior to which these parts were wholly imported.

The annual production capacity of these two units was 34,000 sets of hydraulic shock absorbers in 1956. Another unit was started in Bombay in 1959 for the manufacture of friction type shock absorbers. The Gabriel India Ltd. which commenced production of shock absorbers and engine bearings in Bombay in 1960 is now a renowned concern. It has its factory at Mulund which employs about 470 employees, and has an annual turnover of Rs. 60 millions approximately. (Automan India, 1981.)

Electrical equipment including sparking plugs for automobiles is being manufactured in Bombay since 1955. The Auto Accessories (India) Pvt. Ltd. was the first enterprise in Bombay to start manufacture of sparking plugs in 1955. This concern was established in collaboration with a British firm. This was the second unit in India, the first factory being established in Bangalore in 1953. These two units were the only manufacturers of sparking plugs in India upto 1962. They had together an annual capacity to produce about 1.6 million sparking plugs in 1962. (Handbook of Commercial Information, 1963.)

The automobile ancillary industry which is now an established industry in Bombay, had to suffer the pangs of foreign competition during the initial stages of development. Realising the needs of the situation the Government of India granted tariff protection to this industry from January 1955 to December 1963. (Ibid.) The ancillaries produced in Bombay meet the needs of the automobile manufacturers in Bombay as also of others in the country. A number of items, such as leaf springs, diesel motor engines, electrical equipment, brake linings and clutch facings are exported in considerable quantities. The foreign exchange earnings by these concerns although not very large are symbolic in importance.

SHIPS, BOATS AND CRAFTS

The earliest evidence of ship-building activity is found in the archaeo­logical remains of Mohinjo-daro dating back to some 2500-1500 B.C. There is literary as well as archaeological evidence to show that ship building was an ancient industry in India and that seafaring was a popular profession in coastal areas. The Sanskrit work Yukti Kalpataru is the earliest known treatise on the art of the ship building. (Radha Kumud Mookerji, History of Indian Shipping) According to this source, there were as many as twenty-five different varieties of Indian ships. The Venetian traveller of the 13th century, Marco Polo left an account of ship-building in India. Indian ship-building survived throughout the middle age. The industry flourished during the 18th and early 19th  centuries when the East India Company encouraged the fabrication of ships in India for its use. The industry was concentrated in Bengal. At that time on the west coast, a ship-building yard functioned at Surat, and later at Bombay. The Bombay Dockyard produced vessels for civilian use as well as for the use of the Royal Navy under the supervision of Parsi ship builders. The ships built in Bombay were not only durable but also cheaper than those built in foreign countries.

Indian ship building industry decayed during the latter half of the 19th century when the British authorities withdrew their support. Discriminatory rates of import duties in Great Britain on goods carried by Indian ships also created conditions for its decline.

The need for revival of Indian shipping and ship-building industry was felt during the First World War when the requirements of overseas trade of the country and of naval defence became more and more pressing. A number of steamship companies were established at that time. One such company viz., the Sciendia Steam Navigation Co. Ltd. which was set in 1919 was the pioneer in developing the modern ship-building industry in the country. (Handbook of Commercial Information, 1963.) The company has a ship repairing workshop at present in Bombay.

The principal raw materials required in ship-building are steel and timber. About 20 to 30 per cent of the requisite materials are available in the country (1961). The categories of steel required are plates, bars, black sheets, G. I. sheets, steel wire ropes and heavy structural. In addition paints and ancillary equipments are also required. Machinery and equipment like propellers have to be imported. Steel required for ship-building purposes which had to be imported formerly is now available from Rourkela. Wire ropes and paints are already being produced indigenously.

Mazagon Dock : Mazagon Dock Ltd.., Bombay, was acquired by the Government of India in 1960. It was primarily a ship repair yard established in 1915. It is now a public sector undertaking incorporated as an autonomous commercial corporation and is one of the largest ship-building undertakings in India. The Government decided that the company's ship-building facilities should be considerably augmented and modernised to cater primarily for building warships and merchantships as well. In pursuance of this decision an expansion scheme was launched in 1964 and completed in 1970-71. Two new ship-building berths with necessary cranes and other essential services have been provided. These berths are capable of accommodating ships upto approximately 15,000 LWT. The Production and Assembly Shop, Weapons and Electronic Complex and several other workshops were built and expanded with all modern facilities. The tidal Kasara Basin has been converted into an impounded wet dock capable of accommodating four medium size ships at a time. With these modern shops, ship-building berths, machinery, equipment and associated facilities, Mazagon Dock is now capable of building various types of ships such as, (a) sophisticated warships, (b) passenger ships, pssenger-cum-cargo ships and cargo ships, (c) dredgers, (d) tugs, barges, trawlers, etc. Three Leander class frigates built by the Mazagon Dock have already been commissioned in the Indian Navy. It is remark­able that the frigates are of fully Indian design. A luxury passenger-cum-cargo vessel designed and built for the first time in India was delivered by Mazagon Dock to the Shipping Corporation of India in December 1974. This ship is now plying on international routes.

During the decade 1965-75, the value of production and foreign ex­change earning of the company rose from Rs. 3,86 lakhs and Rs.1,21 lakhs to about Rs. 37,38 lakhs and Rs.10,54 lakhs, respectively. In addition to shipbuilding the Mazagon Dock hss also built up substantial capacity for ship-repair work. During 1974-75 as many as 673 ships were repaired out of which about 282 were foreign vessels.

This company has also built for the Indian Navy a bucket dredger, two inshore mine-sweepers, two Avcat tankers designed to carry aviation fuel. It has received orders for constructing six off-shore fixed well platforms for the Oil and Natural Gas Commission. The annual production turnover of the company registered a growth from Rs. 1,63.61 millions in 1970-71 to Rs. 5,33 millions in 1977-78. (The Times of India Directory and Year Book, 1980-81)

The Mazagon Dock is a symbol of national pride and progress in the production of sophisticated warships. It occupies a place of honour among the few producers of Leander type frigates in the world.

RAILWAY  ROLLING  STOCK

The first Indian railway ran over a stretch of about 34 kilometres from Bombay to Thane on April 16, 1853. Since then the Central and Western Railways emanating from Bombay expanded over a large part of the coun­try; The railway system brought engineering workshops in its wake initially for the maintenance and servicing of rolling stock, and in the course of time tot manufacture of passenger coaches and other rolling stock. As per the Wealth of India {Part II), the then B. B. & C. I. Railway built a particular type of carriage for passengers in 1863. The early carriages were built of timber seasoned teak. The designs and construction of carriages showed considerable improvement from the beginning of the present century with the introduction of continuous vacuum brake and bogie carriages (Handbook of Commercial Information, 1963.)

The original locomotive works of the Great Indian Peninsula Railway (now Central Railway) were opened at Byculla about 1854, and provided employment to about 800-1,000 operatives. In the course of time the expansion of the railway forced the company to look for a larger area and in 1878 it was shifted from Byculla to the present workshop at Parel. The latter workshop was found, subsequently, too limited to cope up with the volume of work, and the carriage and wagon shops were removed to Matunga, in about 1909-10. The G. I. P. Railway workshops provided employment to about 7,826 persons in 1909.

The Central Railway have five workshops in Bombay at present, viz., Locomotive Workshop at Parel, the Matunga Carriage and Wagon Work­shop, Signal and Telecommunication Workshop at Byculla, Electric Multiple Unit Car Shed at Kurla and Diesel Loco Shed at Kurla. The Locomotive Workshop at Parel established in 1878 is primarily meant for periodical overhauling, major repairs and special repairs to steam, electric diesel hydraulic, diesel, electric engines and cranes. As many as 264 locomotives were overhauled and repaired in this workshop in 1976-77. The workshop also carried out repairs and overhauling of 40 cranes and 66 non-locoboilers in the same year. Many locomotive components are also manufactured in this workshop which provided employment to about 6,900 persons in 1976-77.

The carriage and wagon workshop at Matunga undertakes major as well as special repairs and periodical overhauling of carriages and wagons. About, 3,609 passenger carriages and 4,113 railway wagons were repaired and overhauled in this workshop in 1976-77. It employed about 5,900 persons in the same year. A special vestibular railway coach with comfortable chair cars for the Deccan Queen plying between Bombay and Pune was also manufactured in the Matunga workshop.

The signal and telecommunication workshop at Byculla undertakes repairs, periodical maintenance and manufacture of signal and telecommunication equipment. It also undertakes repairs of medical equipment. The articles manufactured include self-printing ticket machines, C. P. Valves, AWC-2 Zincs, wagon retarders, moped trollies, axle counters, etc. A fully equipped maintenance and repairs cell for ultra-sonic Flaw Detectors and Rail Testers has been set up in this workshop. About 950 persons are employed in this workshop.

The Electric Multiple Unit Car Shed at Kurla undertakes overhauling and repairs of electric equipments of local train coaches which are maintained here. The car shed, as on 31st March 1977, had a capacity of holding about 284 motor coaches and 434 trailer coaches which are used for the running of over 853 local trains daily. As many as 444 electric multiple coaches were overhauled and 21 were specially repaired in the car shed in 1976-77. It provided employment to about 2,300 persons in the same year.

The Diesel Loco Shed at Kurla undertakes the repairs of diesel hydraulic engines which are utilised mainly for yard shunting and for running pilots and shunters on Bombay-Kalyan railway section. It overhauled 54 engines and provided employment to 400 persons approximately in 1976-77.

Besides, there is a maintenance shed at Bombay-V. T. for repairs to mail/express train engines. (Based on information supplied by the Central Railway.)

The Parel Workshop of the then Bombay-Baroda and Central India Railway was opened in 1868. The workshop was, in those days, chiefly engaged in repairing the company's rolling stock and in building carriages and wagons of  every description.   Locomotives were imported from England and fitted up in the workshop. Upto 1880 the workshop employed about 1,500 to 2,000 men which number increased to 4,062 in 1909. The workshops were under charge of a Locomotive and Carriage Superintendent aided by an Assistant Locomotive Superintendent and an Assistant Carriage and Wagon Superintendent who were Europeans. (Gazetteer of Bombay  City and Island, Vol I, 1909.)

There are two Loco Sheds of the Western Railway at present in Bombay viz., Parel Loco Shed and Bandra Loco Shed. Besides, there aie two carriage shops at Lower Parel and Mahalaxmi, and an Electric Car Shed at Bombay Central.

The Parel Loco Shed homes about 40 railway engines which are serviced, maintained and repaired regularly. Seventy-five per cent of the engines are used for the hauling of mail, express and passenger trains. (Now most of the trains are hauled by electric locomotives from Bombay (1983). The shed is equipped with machinery and technical staff (675 persons in 1969-70). The Bandra Loco Shed is equipped to overhaul and repair about 50 steam and diesel engines, most of which are utilized for shunting goods trains. The shed provided employment to about 1,050 persons in 1970.

The Lower Parel Carriage Shop was built in 1900 as a central workshop for repairs to broad gauge locomotives, carriages and wagons. The loco­motives workshop was subsequently shifted to Dohad in 1928 due to paucity of accommodation at Lower Parel. Like-wise a new wagon repair shop was constructed at Kota in 1962. After shifting of the above referred workshops to Dohad and Kota, the Parel and Mahalaxmi Workshops are presently engaged in periodical overhauling and repairing of broad gauge coaching stock only.

The Electric Car Shed at Bombay Central deals with maintenance and repairs of electric motor coaches. It is provided with the necessary machinery and technical personnel. (Information supplied by the Western Railway.)

B.E.S.T. WORKSHOPS

The first engineering workshop of the Bombay Electricity Supply and Tramways Company was established in 1886 at Colaba to repair trams in Bombay. The workshop provided employment to 275 operatives in 1909. It was shifted to Kingsway at Dadar in June 1915 on account of the complaints of the residents at Colaba. After incorporation of the bus service in Bombay a new workshop was opened at Colaba in 1926 for bus repair. With the expansion of the fleet of the BEST the Colaba workshop was felt to be inadequate. It was therefore imperative to attach a bus workshop to the tram workshop at Dadar. Subsequently the entire workshop at Colaba was shifted to Dadar in 1950. With the discontinuance of tram service in 1964, the tram workshop was converted into bus workshop and the employees were absorbed in the bus workshop at Dadar. (B.E.S.T. Upakramachi Katha (Marathi).

The BEST central workshop at Dadar is a very big one providing the necessary machinery for repairing and overhauling the entire fleet of 1,929 buses in Bombay. Thq workshop is equipped to overhaul the chassis of buses, bus bodies, mechanical repairs and painting of buses.

BICYCLE INDUSTRY

The history of bicycle industry not only in Bombay but also in India dates back to 1939 in which year the Hind Cycles Ltd. started manufacture of a complete bicycle in Bombay. The company is one of the pioneers in the manufacture of bicycles and spare parts in India. It has its factory in Worli area, and also has put up a new unit at Kandivli for assembly of Besini Auto Engines.

The year 1939 saw the commencement of the production of a complete bicycle in India by the Hind Cycles, Bombay and another unit at Patna. The products of the industry were highly in demand by the defence services of the country. The two factories supplied 55,000 bicycles for the defence services during the Second World War. The factories were faced with foreign competition after the cessation of war. The industry was therefore granted protection in March 1947 in the form of conversion of the revenue duties into protective duties. The protection was reviewed from time to time and rates of duties were changed from time to time. The protection was extended upto December 1963. The combined installed capacity of the two units in Bombay and Patna was 120,000 bicycles per annum at the commencement of the First Five-Year Plan, (Handbook of Commercial Information, 1963.) while their actual production was 101,126 in 1950-51. (Kotharis Investor's Encyclopaedia.)

From humble beginnings in 1939, the bicycle industry has grown considerably in dimensions, and it meets the fast growth demand from all over the country. Besides indigenous demand, the industry exports a large number of bicycles. In 1951-52, the number of bicycles imported were 2.83 lakhs, while self-sufficiency was attained in 1958 and the Govt, banned import of bicycles and components except for some accessories and special metals which are required for manufacturing. The Hind Cycles Ltd. was subsequently taken over by the Govt, in public interest. It is now known as the National Bicycle Corporation of India, Worli, and has two plants in Bombay. It has an installed capacity to manufacture two lakh bicycles per annum, its sales turnover amounting to Rs. 6.74 crores in 1977-78. The Central Distributors Ltd., Bombay, acts as financial guarantor to the Hind Cycles. It also manufactures bicycle components and parts. Besides, there are a few small-scale units in Bombay which started production of components and spares. The Bicycle Manufacturers Association of India has created an Export Pool for assisting its member concerns in finding export markets for Indian bicycles.

Most of the raw materials required by the industry can be had from indigenous sources, while imports are confined to steel tubes, cold rolled steel strips and bars, etc. Efforts are on the way to reduce the imported constituents.

The Annual Survey of Industries of 1975-77 does not give separate statistics for this industry. However the 1973-74 A.S.I, gave statistics for a group covering bicycles, cycle-rickshaws and parts. As per the Annual Survey of 1973-74, there were 17 registered factories which provided employment to 1308 employees including 1077 workers. The fixed capital in these factories was Rs. 49.74 lakhs, the working capital Rs. 96.51 lakhs and invested capital Rs. 190.53 lakhs. The factories paid Rs. 48.17 lakhs by way of emoluments including Rs. 29.06 lakhs as wages to workers. The fuel consumption of the factories was limited to Rs. 9.95 lakhs, the raw material consumed being worth Rs. 482.78 lakhs. The value of plant and machinery was Rs. 80.94 lakhs.

The products of the industry were valued at Rs. 588.93 lakhs. The total output and total inputs were computed at Rs. 609.66 lakhs and 509.05 lakhs, respectively in the year. The value added on manufacture was estimated at Rs. 93.49 lakhs in 1973-74.

Top

METAL PRODUCTS AND PARTS

This is a broad sector of industry which covers a wide range of manu­facturing activity. The various segments of this sector are conceived to cover (i) manufacture of fabricated metal products, such as metal cans from tinplate, terneplate or enamelled sheet metal, metal shipping con­tainers, barrels, drums, kegs, pails, safe vaults, enamelled sanitary equipment, (ii) manufacture of furniture and fixtures primarily of metal, and (iii) manufacture of hand tools and general hardware. This classification accords with the one adopted by the authorities of the Annual Survey of Industries, 1975-77. The 1973-74 Survey gives separate statistics for many more segments, and the same are utilised wherever necessary. Before giving an account of the various segments of this industry, it may be useful to give an analytical account of the metal products and parts industry at the outset. This analysis is based on the Annual Survey of Industries in 1975-77. The figures stand for the annual averages for the survey period.

As per the Annual Survey of Industries of 1975-77, there were 751 regis­tered factories in this industry in Bombay which formed 67.05 per cent of the industry in Maharashtra. The industry in this city provided employment to 37,818 persons which constituted 70.52 per cent of the employment in the State. The capital invested by the Bombay metal products manufacturing units was computed at Rs. 1,00,24 lakhs consti­tuting 67.12 per cent of the investment in the Maharashtra industry. The output of the factories in Bombay was computed at Rs. 2,16,91 lakhs or 72.32 per cent of that in the State. The value added on manufacture by the Bombay concerns was to the tune of Rs. 57,93 lakhs which formed 72.98 per cent of that in Maharashtra. This analysis leads to some obvious conclusions. Bombay occupies a place of honour in Maharashtra as regards this industry, as about 72 per cent of the production is done here. The output of the industry in Bombay is more than double the capital investment. The value added on manufacture is about 57 per cent of the fixed capital. This shows the higher productivity and higher returns on capital.

As per the A.S.I, there were 532 registered factories in this industry in Bombay in 1973-74 which increased to 751 in 1975-77. The total employment provided by the industry in 1973-74 and 1975-77 was estimated at 39,092 including 30,545 workers, and 37,818 including 28,446 workers, respectively. The position in respect of capital is given below :—

(Rs. in lakhs)


Item

1973-74

1975-77

Fixed capital

32,75.57

36,16.04

Working capital

33,95.46

31,48.57

Capital invested

82,83.99

1,00,24.45

Outstanding loans

46,98.84

82,86.16

It follows from the above statistics that there was a rise in fixed capital and capital invested. But this rise was not commensurate with that in the number of factories in 1975-77. The industry in Bombay worked for 1,09,21,303 man-days in 1975-77.

The structure of costs incurred by the factories in Bombay can be studied by the following statistics:—

(Rs. in lakhs)

Item

1973-74

1975-77

Wages to workers

15,53.13

17,34.77

Total emoluments

21,85.64

29,82.49

Fuel consumed

3,09.46

5,30.01

Material consumed

94,24.65

1,24,67.85

Other inputs

N.A,

25,05.09

Total inputs

1,07,01.48

1,55,02.95

Thus, there was an all-round increase in the costs incurred by the factories, it being most marked in the case of raw material consumption and value of total inputs. The value of plant and machinery was computed at Rs. 34,81.65 lakhs in 1973-74 and Rs. 46,37.62 lakhs in 1975-77.
The position about the output of the industry is stated below:—

(Rs. in lakhs)


Item

1973-74

1975-77

Value of products

1,43,30.61

1,94,60.69

Other output

N.A.

22,30.31

Total output

1,53,68.27

2,16,91.00

Depreciation

3,16.42

3,94.68

Value added on manufacture

43,50.36

57,93.36

The above figures show a conspicuous increase in output of the Bombay metal products industry over the years under reference. The value of factory payments was computed at Rs. 11,54.70 lakhs and net income at Rs. 46,38.67 lakhs in 1975-77.

It can be deduced from the above analysis that though this may not be a labour-intensive industry like cotton textiles, it has a large employment potential. The share of wages paid to workers in the total emoluments is rather less. The ratio of total output to total inputs shows the satis­factory position of the industry. The value added on manufacture is quite high. The net income of the factories is almost 46 per cent of the invested capital which means a very high rate of returns on capital.

Several large companies in Bombay are engaged in manufacture of metal products. They together constitute a growing sector of the industry of Bombay. Many of the companies have foreign collaboration arrangements with reputed concerns in the Western countries. The collaboration in some cases is in regard to financial participation as well as technical know-how, while in some cases it is only as regards technical know-how. The industry in Bombay has derived considerable advantages on account of such collaboration agreements. The industry in Bombay is found to take roots in the thirties of this century. It however received an immense stimulus during the Second World War when there was a virtual stoppage of imports of metal products on account of War demand in the exporting countries. The demand from growing industrialisation in this period also enlarged the growth of the indigenous industry. It is well-known that all industries were passing through a period of boom during the war which required a huge quantity of equipment. This demand encouraged the expansion of existing metal engineering plants and the incorporation of new ones in Bombay.

The defence efforts of the then Government of India also provided a tremendous encouragement to the growth of metal engineering as the products were essential for equipping the defence services as well as the defence equipment production in the country. The Government extended the necessary assistance to the industry. The cessation of hostilities in 1945 however brought about conditions of a mild slump in the industry on account of demand recession and foreign competition. Since there was no ban on imports, the articles were freely impoited which confronted the indigenous industry. The Government of India was persuaded from time to time for the granting of protection to the infant industry. The appeals for tariff protection were considered, and protection was granted from time to time. (Handbook of Commercial Information, 1963.)

The real growth of the industry was however achieved after Indepen­dence. The Government of India adopted a purposeful growth-oriented policy. The appeals for protection were considered very sympathetically. The industry thus received Government protection, though not virtual patronage. With the further growth of the industry in Bombay, Calcutta, Jamshedpur and many other centres, the Government of India banned the import of the many metal engineering products. The inevitable result was the progress of the indigenous industry. The production was diversified to meet the demand from the clients and to achieve economies of scale. The production was not confined to metal products, but was also diversified to the production of machinery and equipment for the growth of the machi­nery industry in Bombay as well as in India. In fact many of the members of this industry are manufacturing machinery and equipment also.

It is attempted below to give an account of some of the well-known manufacturers in Bombay, on the basis of available information. It is possible that the companies whose information is not available may also be large-scale manufacturers of reputation.

The Guest Keen Williams Ltd., incorporated on 17th February 1931 at Calcutta, was converted into a public limited company in 1956. The Bhandup plant of this company commenced in September 1953, which is now the largest producer of high class steel and brass wood screws in India. (Kothari's Investor's Encyclopaedia.) The Precision Pressings division of the company at Bhandup, besides its plants at Howrah and Bangalore, is ranked among the largest and the most versatile engineering groups in the country. The activities of this division help the nation's power and energy programme and its products are essential to the generation, distribution and utilisation of electric power for industrial and domestic purposes. The range of its products include a large variety of electrical steel stampings, laminations, strip wound cores, precision pressed and deep drawn sheet metal components, precision press tools, jigs, fixtures and dies. (IEMA, 1974.) It also manufactures fasteners, rivets, spikes, screws of various types, cotter pins, safety pins, bolts and nuts and other industrial fasteners.

The turnover of sales of the Guest Keen Williams amounted to Rs. 41.34 crores in 1978-79 and Rs. 50.81 crores in 1979-80.

The Indian Smelting and Refining Company, established in 1931, has factories at Bhandup and Pokharan (Thane). It manufactures brass sheet, strip coils, non-ferrous alloys, castings, etc., the sales turnover of which was of the order of Rs. 17.54 crores in 1977-78. (A State-wise Picture of Large Scale Industrial Activity, 1981.)

The Kamani Engineering Corporation, incorporated in 1945 has a plant at Kurla. It is a well-known manufacturer of high tension transmission line towers, track structures, rural electrification poles, railway electrification structurals, road rollers, flood light poles, signalling posts, and fabrication of a number of items. The sales turnover of this company was of the order of Rs.17.01 crores in 1978-79 and Rs. 16.61 crores in 1979-80. It has an installed capacity to produce 45,000 tonnes, its actual production being 21,500 tonnes in a latest year. The Kamani Tubes Ltd. manufactures non-ferrous metal tubes, the turnover of which was worth Rs. 5.86 crores in 1976-77. (Ibid.)

The Godrej & Boyce Co. with two factories at Vikhroli and one at Lalbaug in Bombay is by far the oldest and the largest manufacturer of metal products such as steel furniture, cupboards, safes, locks, padlocks, refrigerators, machine tools and a wide range of industrial goods and consumers goods. Its sales turnover of all products was as high as Rs. 86.42 crores in 1978-79 and Rs. 107.64 crores in 1979-80. The Fit Tight Nuts & Bolts Limited, incorporated in 1957, has a factory on Andheri-Kurla Road, besides another at Porbandar. It is a very large manufacturer of high tensile fasteners and items for industries, such as, automobiles, tractors, machine tools, marine engines, diesel engines, electrical equipment. It also produces special type of nuts, bolts, and many producers goods. The sales turnover of the company was Rs. 8.29 crores in 1978-79 and Rs. 10.65 crores in 1979-80. The Graham Firth Steel Products Ltd. with a factory in Bombay has an annual production capacity to produce 9,000 tonnes of narrow cold rolled steel strips. Its turnover of sales was worth Rs. 5.63 crores in 1979-80. The Special Steels Limited with a factory at Borivli, besides another one at Tarapore, is a manufacturer of steel wires, high carbon steel wires, tyre bead wires, pre-stress concrete wires, flat strips, bright drawn bars and alloy steels. The turnover of its sales was to the tune of Rs. 26.31 crores in 1978-79 and Rs. 31.44 crores in 1979-80. The Metal Box India, a foreign company, was incorporated in 1933. It has two factories in Bombay at Worli and Trombay. It is a reputed manufacturer of metal containers, drums, closures, hardware and publicity materials, aluminium extrusions, special purpose package fabrication and machi­nery components. The turnover of sales of this company was worth Rs. 18.34 crores and Rs. 36.92 crores, respectively in 1978-79 and 1979-80. The Zenith Tin Works, incorporated in 1938, has a factory at Mahalaxmi, which is a large-scale manufacturer of metal containers, aluminium collapsible tubes and pilfer proof lamps. Its sales turn­over was Rs. 7.71 crores in 1978-79. The Gannon Dunkerley & Co., incorporated in 1924, has a factory at Mahul which manufactures LPG cylinders and fabrications on a large scale.

The Khira Furniture Co. is a manufacturer of steel furniture and cupboards. The Steelage Industries Limited, established in 1932, has a factory at Mazagaon which produces bank security products, safes of varying types and qualities, safe deposit lockers, steel furniture and cupboards.

The Killick Nixon Ltd. with a factory at Chandivli was incorporated in 1947. It manufactures jacks, pumps, ductiflex sheatings, furnaces and vibrators, the sales turnover being to the tune of Rs. 7.76 crores in 1978,79 and Rs. 9.73 crores in 1979-80. The Bombay Forgings Ltd. with factories at Kalina and Mahalaxmi is a manufacturer of closed die castings, steel forgings and tootb brushes. Its sales turnover was valued at Rs. 5.56 crores in 1977-78. (A State-wise Picture of Large Scale Industrial Activity, 1981.) It was established in 1966. The Hindustan Transmission Products Ltd. has a factory at Chandivli which manufactures enamelled copper wires, strips, products of copper scrap, insulating varnishes etc. It was established in 1940.

The Structural Engineering Work Ltd. incorporated in 1943 at Bombay is equipped for design, fabrication and erection of steel frame building, bridges, towers, tanks, chimneys, aeroplane hangers, pressure vessels, transmission towers, kiers, etc. It also manufactures oil and vegetable ghee plants, sugar factory vessels, etc.

The National Steel Works Ltd. originally established in 1940 in Lahore was shifted to India in 1947. It is engaged in rerolling steel bars of various categories. It has a production capacity of 18,000 tonnes per annum. It has a factory at Parel Tank Road. (Kothari's Investor's Encyclopaedia.)

The above survey though exhaustive is no means complete. There are many other concerns which manufacture a wide range of metal products. The above survey suggests that the growth of this industry gathered momentum in the thirties. Many of the reputed concerns entered the field during the Second World War period,   while   the   development  was accentuated during the fifties of this century. It is now a developed industry equipped with modern and sophisticated plants and machinery, and has a honoured position in the economy of Bombay as well as the country.

METAL CANS, SHIPPING CONTAINERS, BARRELS, DRUMS AND METAL CONTAINERS

According to the Annual Survey of Industries, this sector of manufac­turing is conceived to cover fabricated metal products such as metal cans from tin plates, terneplate or enamelled sheet metals, metal shipping containers, barrels, drums, kegs, pails, safes, vaults, enamelled sanitary and other fabricated metal products not elsewhere classified. This is a very broad grouping which covers several products although of similar nature. It is, therefore, quite difficult to present an account of the industry at the micro-economic level. Hence a general account of the industry based on the Annual Survey of Industries statistics and the published information about some of the important manufacturers in Bombay is given below. An attempt is also made to go to the micro-economic level.

The fabrication of metallic containers commenced in Bombay during the First World War when supplies required by the Oil Companies became scarce in the country. The sustained growth of the industry had however to await the development of the indigenous steel industry and the installa­tion of the first tin plate manufacturing plant during the second decade of the present century. Improved metal packaging techniques were introduced in the country for the first time in the early nineteen thirties. (Handbook of Commercial Information, 1963.) The industry progressed rapidly after the Second World War. The growth of this industry has been directly related to that of other industries as its products are mainly in demand by other industries.

The products of the industry which can broadly be called metal containers are used for canning food-stuffs, and for storage or carriage of oils, chemicals, lubricants, paints, pharmaceuticals and toiletries. The shape and size of the containers vary according to the uses to which they are put. Large drums and barrels are required for bulk transport of mineral oils, and petroleum products. The petroleum industry requires drums of a capacity of 200 litres and above. Medium sized drums and kegs are utilised mainly for carrying vegetable oils and chemicals. Open top cans are required for packing processed and preserved fruits, vegetables and dairy products. Tin plate containers are in demand by the confectionery, biscuit, edible oils, baby foods, paints, insecticide and toiletry industries. Tooth-paste manufacturers, ointment producers and photographic films use very small containers in the shape of rigid or collapsible tubes made, generally, of aluminium foil. Thermo-plastic containers are now replacing metal containers in some of the industries as packing materials.

The recent technological improvements have succeeded in manufacturing tamper-proof containers which ensure the purity and non-contamination of the products to be packed. Their quality has further been improved by coating the inside of the containers with particular types of lacquer paints.

The growth of the petroleum industry, vanaspati, preservation of food articles, chemicals and pharmaceutical industries after the Second World War accentuated the development of the metal container industry in Bombay. The growing supply of liquefied petroleum gas, shipping containers and many industries provided a further stimulus to the industry.

A number of large concerns, some of them with foreign collaboration, have developed in Bombay. The Metal Box Company of India Ltd., initially founded at Calcutta in 1933, has two factories in Bombay. This foreign concern is specialised in tin-printing and the production of open top cans for processed food-stuffs, tin plate containers, composites, collapsible and rigid tubes, polyethylene bags, insecticide sprayers, trays, toys, pilfer-proof closures, industrial components and other hardware. The value of sales by this concern increased from Rs. 18.34 crores in 1978-79 to Rs. 36.92 crores in 1979-80. (A State-wise Picture of Large Scale Industrial Activity, 1981) The Zenith Tin Works with a factory at Mahalaxmi in Bombay manufactures various types of metal containers, pilfer-proof closures and extruded products. It has an installed capacity to produce 16,500 tonnes of metal containers. Its sales were reported to be about Rs. 7.71 crores in 1978-79. (Ibid.) The Gannon Dunkerley and Co. has a factory at Mahul near Trombay. It has specialised in the manufacture of liquefied petroleum gas cylinders and fabrication work connected with the same, the value of its sales being Rs. 1.39 crores in 1979-80. The Poysha Industrial Company with a plant at Sewri is another manufacturer of metal containers and battery jackets. The Mahindra Owen is developing a plant for manufacture of shipping containers which are so very essential for the shipping industry. Besides, there are many other concerns in this industry in Bombay, and the structure of the entire industry is analysed below.

As per the Annual Survey of Industries, there were 144 registered factories engaged in the industry in Bombay in 1973-74. Their number increased to 239 in 1975-77. Most of the new units enumerated in the 1975-77 survey might be small-scale units. There was no increase in employment or in capital investment in 1975-77 over those in 1973-74 The tofkl employment in these factories showed a decline from 14,361 persons (including 11,436 workers) in 1973-74 to 11,748 persons (including 9,208 workers) in 1975-77. The trend in capital, as per the survey, is given below :—

(Rs. in lakhs)


Item

1973-74

1975-77

Fixed capital

10,48.97

11,05.13

Working capital

14,06.70

13,80.37

Capital investment

29,81.11

28,72.36

Outstanding loans

14,76.49

19,97.68

The industry worked for 3,409,967 man-days as per the 1975-77 survey. The payment of wages to employees was to the tune of Rs. 8,51.62 lakhs including Rs. 6,93.15 lakhs paid to workers in 1973-74, the corresponding figures being Rs. 9,01.09 lakhs and Rs. 5,56.94 lakhs per annum as per the 1975-77 survey. The value of fuel consumed amounted to Rs. 91.15 lakhs which increased to Rs. 1,62.95 lakhs in 1975-77. The factories utilised raw materials to the extent of Rs. 49,79.66 lakhs in 1973-74 and Rs. 53,31.24 lakhs per annum in 1975-77. The other inputs of the units were valued at Rs. 805.70 lakhs in 1975-77. The value of total inputs by the firms stood at Rs. 55,34.24 lakhs in 1973-74 and Rs. 62,99.89 lakhs per year in 1975-77. The value of plant and machinery during the years under study was placed at Rs. 12,48.45 lakhs and Rs. 15,13.56 lakhs, respectively. The position of the value of production of the units in Bombay was as given below:—

(Rs. in lakhs)

Item

1973-74

1975-77

Value of products ..

69,42.98

74,60.86

Other output

N.A.

6,97.96

Total output

73,04.59

81,58.82

Depreciation

1,03.81

1,25.21

Value added on manufacture

16,66.53

17,33.72

Factory payments

N.A.

2,89.59

Net income

N.A.

14,44.13

The above statistics lead to some conclusions about the industry in Bombay. Firstly, there was a fall in employment inspite of the increase in the number of factories in 1975-77. Secondly, while there was an increase in the total emoluments to employees, the payment of wages to workers declined. Thirdly, the increase in the use of raw materials during the 1975-77 survey was not commensurate with the increase in the number of factories. Fourthly, the value of total inputs was about 75 per cent of the value of output as per the 1975-77 survey. Fifthly, the net income of the concerns was about 50 per cent of the capital investment of the concerns as per the 1975-77 survey. It means excellent returns over capital investment.

It may be pertinent to write about the raw materials used by the industry. Drums and kegs are made of mild steel sheets or galvanised iron sheets of varying thickness. Large drums are manufactured from thick deep-drawing quality steel sheets which are processed hot rolled, cold rolled, pickled, dried and oiled. Capsules are made of tin plates. For tin plate containers the raw materials are black sheets coated with tin. The tin is imported from abroad. Some of the products of the industry are exported to Burmah, Sri Lanka, Kenya and Thailand. (Handbook of Commercial Information, 1963.)

FURNITURE AND FIXTURES OF METAL

The steel furniture industry first appeared as an off-shoot of the organised manufacture of improved locks and safety locker equipments. It is as old as the present century. It has grown fast with the nourishment provided by the increasing indigenous availability of steel sheets and other material. Towards the end of the 19th century, a pioneer firm in Bombay, namely, the Godrej Boyce Manufacturing Company, engaged in the manufacture of improved locks succeeded in producing steel safes, which were found to be of acceptable quality. Soon after, the experiments of the firm with safes led to the manufacturing of steel furniture, and thus the foundations were laid for, what has turned out to be one of the important engineering and metal products industries not only of Bombay but also of India. It is claimed that production of Indian steel cup­boards developed earlier than elsewhere. The industry expanded consi­derably after the Second World War in general and the mid-fifties in particular. Many factories were established in Bombay and its environs. The growth of the industry is attributable mainly to the expanding use of steel furniture in offices, libraries, hospitals, shops and establishments, and households. The increased use of steel furniture is mainly due to its pronounced advantages in respect of economy of space, durability, economy of costs, risk of fire and increasing scarcity of good seasoned wood.

The renowned steel furniture manufacturers in Bombay are the Godrej Boyce Manufacturing Co., Khira Furniture Co., Zenith, Steelage, besides which there are several small manufacturers in Greater Bombay and its periphery. The industry is now decentralising to the suburbs. During the post-Independence period Ulhasnagar near Bombay is emerging as an important centre of the industry. In fact the Ulhasnagar manufacturers are now confronting the Bombay manufacturers as regards price competition, though they are found to compromise quality in favour of lower prices. Though the connoisseurs of good quality and the well-to-do prefer the products of the renowned manufacturers, the humble purchasers are found to have a preference for Ulhasnagar products.

As per the Annual Survey of Industries, there were 19 factories manu­facturing furniture and fixtures of metal in Bombay in 1973-74 which increased to 29 in 1975-77. These factories provided employment to 6,874 persons including 5,245 workers in 1973-74. The employment increased to 7,445 persons inclusive of 5,869 workers in 1975-77. The combined position of capital of the factories covered under the Annual Survey is given below:—

(Rs. in lakhs)


Item

1973-74

1975-77

Fixed capital

7,62.75

8,84.92

Working capital

5,61.39

5,39.28

Capital investment   ..

21,61.44

24,06.29

Outstanding loans    ..

12,07.21

14,50.35

The industry worked for 22,41,670 man-days per annum during the 1975-77 survey period, on an average. The annual wages paid to all employees were to the extent of Rs. 518.60 lakhs inclusive of Rs. 284.08 lakhs by way of wages to workers in 1973-74. The corresponding average annual wages increased rapidly to Rs. 804.13 lakhs and Rs. 454.81 lakhs in 1975-77 period. This position brings home two conclusions. Firstly, the rise of wages was considerably high. Secondly, the proportion of wages to workers in the total wage bill of the industry was comparatively low. This might be attributable to the preponderance of skilled engineers, technocrats and managerial personnel in the industry over workers.

The factories consumed fuel valued at Rs. 64.16 lakhs in 1973-74 and Rs. 110.52 lakhs per annum in 1975-77. The consumption of raw materials by them was valued at Rs. 15,90.16 lakhs in 1973-74 and at Rs. 23,30.35 lakhs per year in 1975-77. This shows an increase of about 50 per cent. The other inputs of the factories were to the tune of Rs. 3,74.59 lakhs per annum in 1975-77. The total value of inputs of the factories increased fromRs. 17,51.50 lakhs in 1973-74 to Rs. 28,15.47 lakhs in 1975-77. The value of plant and machinery of the units was Rs. 1,21.31 lakhs in 1973-74 and Rs. 8,09.16 lakhs in 1975-77, which shows a rise of about 670 per cent. It means that the value of plant and machinery might have appreciated either due to expansion or rise in their prices or both the factors combined together.

The structure of output of the industry can be studied from the statistics below:—

(Rs. in lakhs)


Item

1973-74

1975-77

Value of products

26,53.53

40,86.95

Other output

N.A.

3,63.81

Total output

28,32.12

44,50.76

Depreciation

72.35

89.57

Value added on manufacture

10,08.27

15,45.72

Factory payments

N.A.

2,05.02

Net income

N.A.

13,40.70

The conclusion imminent from the above statistics is that the output of the industry increased by about 120 per cent in the 1975-77 survey period over that in 1973-74. The value of products however, increased only by about 50 per cent, while the value added on manufacture by about 52 per cent. It means that the higher rate of growth in the value of output might be due to the higher value of other outputs which included bye-products in 1975-77 period. The steel furniture and fixtures industry in Bombay appears to be more capital intensive and less labour intensive. The ratio of net income to capital investment appears to be quite high. The industry offers a higher rate of return on capital.

The steel furniture manufactured by the concerns in Bombay includes pedestal desks and side tables, tubular revolving-tilting chairs, tubular counter chairs, tubular writing tables with drawers, arm chairs, adjustable typist chairs, nesting chairs, factory workmen chairs, sofa-sets, steel safe-cabinets, lockeYs, steel coffers, cash boxes, card cabinets, almirah and cupboards, open book shelves for libraries, other library equipment, etc. Besides, steel furniture, light and dainty furniture, particularly for furnishing drawing rooms, made of aluminium has come into vogue in very recent years. Aluminium chairs with upholstery are being produced increasingly as they are in demand in Bombay.

Formerly certain types of steel furniture, particularly for office and hospital uses were required to be imported to meet domestic needs. The imports were mainly from the U.K., Czechoslovakia, West Germany, Switzerland, the Netherlands, Italy, U.S.A. and Japan. During the last few years, however, steps had been taken to stimulate the export of steel furniture. The items of good quality are exported to Kuwait, Thailand, Sri Lanka, Afghanistan, Uganda, Nigeria, Singapore and Burma. (Handbook of Commercial Information, 1963.)

SMALL TOOLS, HAND TOOLS AND ACCESSORIES

Small tools and hand tools cover a wide range of items. In general, however, they cover cutting tools, precision and measuring tools and machine tool accessories. Hand tools are used by carpenters, blacksmiths, masons, fitters and craftsmen. According to the Report of the Indian Tariff Board on the small tool industry (1949), the first twist drills, reamers and cutters were made by a firm in Bombay city in 1937 and this was the only firm of its kind in India engaged in this line of industry even upto 1943. (Handbook of Commercial Information, 1963.) The Second World War provided an impetus to the growth of industry, and it was between 1943 and 1946 that two more units came into the field, one in Bombay and another in Secunderabad. Thus in 1946 there were only two firms in Bombay which manufactured small tools and hand tools.

After the Report of the Tariff Board in 1949 several steps were under­taken to help the industry. The Government of India imposed restrictions on the import of such tools so as to grant protection to the infant industry. Besides, a statutory provision was also made for refund of a portion of import duty leviable on raw materials required for the manufacture of small tools indigenously. This concession was particularly in respect of import duty on special steel which was essential for the indigenous industry. Requirements of the Government for small tools were met from indigenous production as far as possible. These measures, coupled with the growing demand for small tools in various industrial sectors, stimulated the expansion of the industry. There was a diversification of products, particularly in the fifties and sixties. The industry produced threading taps and dies, lathe mandrels, drill sleeves, surface plates, measuring instruments, grinding wheels, abrasives and engineer's steel files.

Grinding wheels are required mostly to grind iron, steel and non-metallic materials including glass, marble, porcelain, precious stones, rubber, etc. Grinding wheels are extensively used in transport industries, machine tool building and in foundries.

Grinding wheels are also required for grinding non-metallic materials, and are further used for a large variety of works, such as tool and cutlery sharpening, cylindrical grinding, general and surface grinding, grinding of cereals etc. There are numerous varieties of grinding wheels which are required for different purposes.

It was during the outbreak of the World War II that a factory for the manufacture of grinding wheels was started in Bombay by Grindwell Abrasives Ltd., with the technical assistance of two Czechoslovakian engineers. (Kothari's Investor's Encyclopaedia) This was the pioneering unit in India in this industry. It was followed by another unit in Amritsar, and in 1943 there were only two units in the country including the Bombay firm mentioned above. Even at the commencement of the First Five Year Plan these were the only two units producing grinding wheels in the country, with an annual capacity of 3,600 tonnes. The production capacity of the Grindwell Co. was stepped up to 1,.000 tonnes during the First Plan.

The products of the industry comprise grinding wheels, grinding segments, stones, valve grinding paste and thread grinding wheels, special type of wheels, such as those required for production of razor blades, abrasive discs for railway workshops, mounted points and valve seat grinding wheels with steel bushes. There has been a marked increase in the demand for grinding wheels recently. The growth of hand tools, small tools and many other industries, has accentuated the demand for the products of this industry. (Kothari's Investor's Encyclopaedia.) The claim of the industry for protection from foreign competition was first referred to the Tariff Board in 1945. After enquiry by the Board, protection was granted to the industry by restricting the import of grinding wheels of the varieties already being manufactured in India. Subsequently a protective duty was also imposed on grinding wheels and segments. The protection continued with varying rates of duties upto end of December 1959. (Handbook of Commercial Information, 1963.)

The raw materials required for the manufacture of small tools comprise high-speed steel, alloy and tool steel, carbon steel, pig iron and coke, furnace oil and hardening oils. Most of these were imported formerly, but now they are indigenously available. The raw materials for coated abrasives are available in India, except for synthetic abrasive grains and Turkish emery. The principal raw materials used for grinding wheels are synthetic abrasive grains and bonding materials. Synthetic abrasive grains are imported in small quantity.

Among bonding materials, elastic bonding is imported, while vitrified and mineral bonding materials are indigenously produced. Fibre glass discs are also imported. Carbide powder required for certain tools was freely imported formerly, but it is available indigenously now.

The Indian Tool Manufacturers (1937), a private sector company with a plant at Sion, and subsidiary plants at Nasik and Aurangabad, is a manufactuturer of reamers, drills, tool bits, gear hobs, taps, cutters and micro­meters. It has modernised its factory at Sion very recently. The combined sales of the concern were to the extent of Rs. 7.95 crores in 1978-79 and Rs. 11.08 crores in 1979-80. (A State-wise Picture of Large Scale Industrial Activity, 1981.) The S. S. Miranda (1975) owned by the Piramal Group has a factory at Kandivli which manufactures tool bits, hacksaws, metal cutting hand saws and carbide tipped tools. The value of sales by this concern increased from Rs. 3.23 crores in 1978-79 to Rs. 5.35 crores in 1979-80. (A State-wise Picture of Large Scale Industrial Activity, 1981.)

In the Annual Survey of Industries, hand tools and general hardware are classified together to form an industry group. According to the survey there were 134 registered factories in this industry in Bombay in 1973-74 which increased to 162 in 1975-77. The rise in the number of factories was, however, accompanied by a slight fall in employment, namely, from 8,942 persons including 6,762 workers in 1973-74 to 8,528 persons inclu­ding 6,120 workers in 1975-77. The industry functioned for 24,50,177 man-days per year in 1975-77. The trend in the capital structure of the industry during the two survey periods can be studied from the following
figures:—

(Rs in lakhs)

Item

1973-74

1975-77

Fixed capital

7,93.10

8,85.16

Working capital

8,30.28

7,34.90

Capital investment  

17,48.07

21,75.09

Outstanding loans   

10,65.36

14,67.78

It is obvious that with the exception of the fall in working capital which is inexplicable, there was a rising trend as regards fixed capital, capital investment and outstanding loans which was commensurate with the rise in the number of factories in Bombay. Despite the fall in employment there was an increase in emoluments and wages, viz., from Rs. 5,11.06 lakhs including Rs. 3,80.89 lakhs paid to workers in 1973-74 to Rs, 6,87.97 lakhs inclusive of Rs. 3,88.84 lakhs paid to workers per annum during the survey of 1975-77. This rise could be attributed to the general rise in wages and dearness allowance.

The fuel consumption of the industry in Bombay increased very steeply from Rs. 57.18 lakhs in 1973-74 to Rs. 1,35.79 lakhs in 1975-77. The consumption of raw materials also registered a considerable increase from Rs. 11,80.66 lakhs to Rs. 18,83.41 lakhs during the years under study. The other inputs of the industry were valued at Rs. 5,10.24 lakhs per annum in 1975-77 period. The total inputs of the factories in this industry increased from Rs. 14,42.83 lakhs in 1973-74 to Rs. 25,29.44 lakhs in 1975-77 which means a rise of less than double. The value of plant and machinery rose in consonance with the growth of the industry, viz., from Rs. 11,09.39 lakhs to Rs. 14,18.06 lakhs during the years under study.

The value of products of the factories in Bombay increased by a little less than 50 per cent from Rs. 24,85.28 lakhs in 1973-74 to Rs. 36,47.04 lakhs per year in the survey of 1975-77. The value of other outputs stood at Rs. 2,86.89 lakhs per year in 1975-77. The growth of total output of the industry was quite impressive over the years under reference. It went up from Rs. 26,01.47 lakhs to Rs. 39,33.94 lakhs per annum. The depreciation of the concerns was enumerated at Rs. 93,90 lakhs in 1973-74 and at Rs. 1,04.70 lakhs in 1975-77. The value added on manu­facture which is an important measure of the efficiency of an industry also showed an impressive rate of growth. The value added increased from Rs. 10,64.73 lakhs in 1973-74 to Rs. 12,99.79 lakhs per annum in the 1975-77 survey period. The factory payments and net income of the factories in Bombay were of the order of Rs. 2,41.69 lakhs and Rs. 10,58.11 lakhs, respectively, per annum as per the survey of 1975-77. The net income of the factories was only a little less than 50 per cent of their capital investment in 1975-77. This means quite high returns on capital investment in the industry. The total emoluments paid by the factories were very much less than their net income. This leads us to the conclusion that the share of returns on capital was very much higher than the share of wages and emoluments.

INDUSTRIAL FASTENERS AND SCREWS

Industrial fasteners comprise a variety of bolts, nuts, rivets, dogspikes, panel pins and wire nails. Machine screws are meant for use in metallic parts. They are highly in demand from the railways, aircraft industry, automobile industry, manufacturers of electric motors, fans, transformers, bicycles, sewing machines and other machinery. Wood screws are used in the making of furniture and cabinetware, boxes and frames and in the building industry. Threaded fasteners made of steel are widely used for several purposes.

Industrial fasteners and screws, although they may appear very simple products today, were imported totally from Great Britain, West Germany, Belgium, Denmark, Netherlands, Austria, Italy and Japan. It may be surprising that these products were imported even up to 1961. The indutry originated mainly in the Punjab, the first factory of wood screws in undivided India being started at Karachi in 1932. (Handbook of Commercial Information, 1963) The first factory of machine screws was started in 1941 at Amritsar. The industry came to be located mainly in the Punjab where the indigenous machine building industry was already developing, although the principal source of supply of steel wire, was situated at Jamshedpur. Railways and the defence equip­ment industry encouraged the initial growth of this industry during the Second World War.

The history of this industry in Bombay is traceable to 1944 during which year a large unit in the city took up production of wire nails. (Ibid) The Guest Keen Williams Limited which was initially incorporated in West Bengal in February 1931, commenced manufacture in the Bhandup plant in Bombay in September 1953. (Kothari's Investor's Encyclopaedia.) It is now one of the largest manufacturers of high class steel and brass wood screws. This foreign concern has two plants in Bombay which manufacture rivets, screws, stampings, laminations, nuts and bolts. The value of sales of these products is given below (A State-wise Picture of Large Scale Industrial Activity, 1981.):—

  Sales ( Rs.in crores)

Item

1973-74

1975-77

Stampings

7.88

10.50

Laminations,nuts,bolts

18.74

22.57

Rivets, screws etc

14.72

17.74

Total

41.34

50.81

It is establishing a new unit at Pune for substantial expansion of capacity for pressed components and assemblies. Another large-scale concern in Bombay engaged in this industry is the Fit Tight Nuts and Bolts Limited with a plant at Andheri, and another near Porbunder which manufactures nuts, bolts, socked head cap screws and taps gauges. It was established in 1957. Its sales turnover amounted to Rs. 8.29 crores and Rs. 10.65 crores in 1978-79 and 1979-80, respectively. (Ibid). Besides, there are many other concerns and small-scale units in Bombay manufacturing these items.

The industry has flourished after about 1960 and there is a ready demand for its products. While the imports of these products are prohibited, some of the products are exported from Bombay to African and Asian countries.

The principal raw materials comprise annealed wire, mild steel, steel wire and brass wire, which are available indigenously. The consumable stores required by the industry are thread rolling dies, high carbon or alloy steel slitting saws, tungsten carbide wire drawing dies and many other items some of which are imported in a small measure.

LOCKS AND PADLOCKS MANUFACTURING

The modem lock manufacturing industry in India is more than 100 years old. Bombay, Aligarh, Delhi, Calcutta, Madras and Dindigul are some of the traditional centres of manufacture of locks. The organised industry came into being at Aligarh, when a lock making workshop was set up by the Postal Department there in 1860. The manufacture of lever locks was began at Dindigul about the same time. An  organised padlock factory was established in Calcutta for the first time at the beginning of the present century.

The pioneer in the locks and padlock manufacturing industry in Bombay was however the Godrej and Boyce Co. which established a unit in Bombay manufacturing brass and steel lever type locks, in 1926. The Godrej and Boyce have their plants at Lalbaug and Vikhroli and are accredited to manufacture locks, padlocks, security locks and night latches. They also manufacture a variety of safes and safety cupboards. There are many other companies manufacturing safes, safety cupboards and locks and safety latches in Bombay at present. A number of small-scale factories under government assistance have joined the industry in recent years.

The principal raw materials required by the industry are mild steel, galvanised mild steel wire, cast brass, brass sheets, phosphor bronze wire, etc. Some of the products of the industry are now exported to Sri Lanka, Kenya, Nigeria and some countries in the middle East. (Handbook of Commercial Information, 1963.)

BALL AND ROLLER BEARINGS INDUSTRY

Ball and roller bearings in various sizes and specifications are essential for moving parts of various types of machinery, electric fans and in traction machinery, On account of the high degree of skill required for the manufacture of ball and roller bearings, it has been necessary to seek technological collaboration with foreign companies, and also to secure some types of special steels and raw material components. Prior to 1950 there was absolutely no production of ball and roller bearings in India. The entire quantity required was imported from West Germany, the U.K., Austria, Switzerland, Sweden, Italy, Japan, U.S.A. and U.S.S.R. The New Haven Steel Ball Corporation of Bombay started manufacturing steel balls since November 1951. (Ibid.p.90)  The installed capacity of this unit was 5 lakh steel balls per annum at the beginning of the Second Five-Year Plan. No other new unit was started in India upto 1956, and the demand was met by increasing and diversifying the production of the unit at Bombay, while imports were also permitted.

The manufacture of steel balls was undertaken subsequently by another unit in Bombay, and the requirements of balls for the bicycle industry amounting to 3 millions in number were met by these sources. The electric fans industry accounted for nearly 60 per cent of the requirements of ball bearings during the Second Plan. The tremendous growth of factories producing agricultural machinery, automobiles, textile machinery, electrical equipment, machine tools, diesel engines, aircrafts, defence equipments and pumps during the post-planning period increased the demand for ball and roller bearings.

The most important imported raw material used in the manufacture of ball bearings and steel balls is high carbon chromium steel bars and wire. Other raw materials are now available indigenously. They comprise brass strips and rods, mild steel for rivets, sleeves and nuts.

The industry had to face foreign competition which matter was referred to the Tariff Board, and then to the Tariff Commission. The Government of India accepting the recommendations of the commission granted tariff protection to the industry in the mid-fifties, which was continued for some years.

Ball bearings and steel balls of some specifications are also exported in small quantity from Bombay.

DOMESTIC   UTENSILS

Production of domestic utensils of brass, copper and bell metal is a traditional industry carried on by skilled workers working in cottage units, for generations. Some of the items of brass and bronzeware produced by these cottage units are used as decorative articles, and thus belong to the category of artistic handicrafts.

Famous centres of production in Uttar Pradesh and Gujarat date back to the early middle age, while other centres in Maharashtra and Bengal could be traced to the 18th century. Fabrication of utensils by mechanical process is, however, of comparatively recent origin in the country. The first mechanised unit is known to have been started in Bombay city in 1907. Most of the mechanised units in the large and small-scale sectors were set up in the third decade of the present century. (Handbook ofCommercial Information, p. 171).

The hereditary artisans working in the cottage units generally turn out their products by the traditional handbeating method with small equip­ment and tools. A major proportion of the production of utensils in Bombay is in the small-scale sector. Generally scrap metal including worn out and discarded utensils is melted for the casting operation in the small units. The methods of pressing and spinning for fabrication of utensils are generally adopted in the organised sector of the industry.

According to a survey undertaken by the Maharashtra Small Industries Service Institute during 1955-57, there were 36 small-scale units manu­facturing utensils in Maharashtra, while there were ten large-scale units producing domestic utensils in the State. (Ibid., p. 172.) The domestic utensils industry is comparatively smaller in Bombay. Separate statistics for this industry in   Bombay   are  not   available. The   essential   raw materials for themanufacture of domestic utensils are aluminium circles, copper, zinc unwrought, stainless steel sheets, German silver scrap, tin ingot/scrap and nickel silver. The industry has to depend partly on imported raw materials as the supply of non-ferrous metals in the country is very limited. With the growth of the re-rolling mills in the country indigenous re-rolled circular sheets of metals have, however, become available to the fabrication of utensils.

OIL PRESSURE LAMPS INDUSTRY

This is a small industry in Bombay producing oil pressure lamps and hurricane lamps. In 1960-61, there were five units in Bombay out of the total of ten units in India. The production of the units increased steadily since 1954. With the restrictions on imports and "the growing demand for the lamps, the industry could make a considerable headway. Besides the medium large units, there are quite a few small units manufacturing oil pressure lamps.

All the materials required for the industry are produced indigenously, and there has been a considerable improvement in the quality of lamps manufactured. The Indian Railways are important users of oil lamps. The industry was granted tariff protection from 1951 to 1957. (Kothari's Investor's Encyclopaedia)

Top

BASIC METALS AND ALLOYS INDUSTRY

The basic metals and alloys industry is one of the most important industries of Bombay. The industry has a long history in the city which dates back to 1857 in which year the Byculla Iron Works and Metal Mart was established by Mr. N. C. Richardson. This pioneering enterprise had a factory on Parel road with branch works on Nesbit road, Mazagaon. The enterprise had to face many difficulties in the matter of supply of fuel, suitable appliances and skilled labour which were practically non-existent at that time. Prior to the establishment of this organised plant, an Indian foreman employed in the Gun Carriage Factory was credited to be the pioneer of the iron foundry in Bombay.

In 1909, Messrs. Richardson and Cruddas, Bombay, owned one of the largest engineering works in India affording employment to 2,000 persons. The firm had two workshops, each containing foundries capable of dealing with the heaviest casting required in trade, pattern-shops, smith-shops, fitting and machine-shops and a large structural steel boiler department. The Richardson and Cruddas turned out steel and other work for the Indian Railways, and roof trusses of various designs and style for Government Offices. It had business transactions with all parts of India, Burma, East Africa and the Strait Settlement. It also manufactured sanitary appliances.

Bombay in 1909 contained 15 foundries   and metal  works.  They provided employment to about 5,841 operatives.

The information about them is furnished below as per S. M. Edwardes Gazetteer of
Bombay City and Island, 1909 :—

Name

Operatives employed

Name

Operatives employed

Byculla Iron Works

1,160

A. K. Patel and Co.

178

Byculla Iron Works Branch   .

400

Garbeile and Co.

N.A.

Carnac Iron Works

628

P. & O. Company's Iron Works

886

Defence Iron Works

1,005

Napier Foundry

200

Dock Iron Works

100

Marsland, Price and Co.

445

Empress Iron and Brass Works

100

Geo. Gahagan and Co. Bombay Foundry.

350

Tarachand Masani and Co.   .

120

 

 

D. M. Daruwalla

54

Iron Works

215

The other metal, lock, cutlery and tin works were :—

Name

Nature of Work

Number of hands employed

Godrej Boyce and Co.

Blacksmith, cutlery and safe making ..

240

Art Metal Works

Iron gates, railing and brass work

50

Anant Shivaji Desai Works

Aluminium, German   silver and other  
metals stamped     into     household utensils.

100

Asiatic Petroleum Oil Works

Tin works

353

Burma Oil Works

Tin works

290

Standard Oil Works

Tin works

177

The basic metals and alloys industry in Bombay as classified under the Annual Survey of Industries comprised 294 registered factories which formed 44.55 per cent of the factories in this industry in Maharashtra State. Bombay ranks the first in the districts in Maharashtra as regards all the aspects of this industry, namely, number of factories, invested capital, employment, inputs, output, value added on manufacture, net income of factories, etc. The capital investment in this industry, as per the A.S.I. of 1975-77, was to the tune of Rs. 90,80 lakhs or 32.39 per cent of the capital investment in the industry in Maharashtra. The industry provided employment to 29,663 persons in Bombay which formed 45.73 per cent of the employment in Maharashtra. The output of the Bombay metals and alloys industry was worth Rs. 2,18,01 lakhs which constituted 43.44 per cent of the output of the industry in Maharashtra. The value added  on  manufacture by the industry in  Bombay was enumerated at Rs. 42,44 lakhs which formed 47.35 per cent of the industry in Maharashtra. This analysis brings home the conclusion that a little less than half the basic metals and alloys industry in Maharashtra State is localised in Greater Bombay, and the city is the nerve centre of the industry in the State.

The statistics of the basic metals and alloys industry, as per the Annual Survey of Industries, are available for two sectors, viz. (i) iron and steel industries and (ii) foundries for casting and forging iron and steel. The statistical data for the basic metals and alloys industry and its two sectors, as referred to above, as per the Annual Survey of Industries in 1973-74 and 1975-77 periods are furnished in the following table. The data enables us to analyse the structure of this important industry of Bombay.

TABLE No. 13
Basic Metals and Alloys Industry, Greater Bombay
(Figs, of Rs. in lakhs)

Item

 

Basic metals and alloys industry

Iron and Steel industry

Foundries for casting
and forging iron
and steel

1973-74

1975-77

1973-74

1975-77

1973-74

1975-77

1.

Number   of estimated factories.

296

294

32

31

179

161

2.

Fixed capital (Rs.)

27,12.66

34,72.63

4,39.82

5,79.59

18,48.13

19,63.15

3.

Working capital (Rs.) ..

27,75.73

31,09.16

5,47.37

2,72.83

13,71.83

16,56.65

4.

Capital investment (Rs.)

65,48.71

90,80.46

11,52.36

12,24.21

40,56.33

49,98.69

5.

Outstanding loans (Rs.)

70,02.87

67,95.35

9,97.02

9,51.22

50,02.60

39,73.36

6.

Man-days worked

N.A.

87,89,204

N.A.

8,50,524

N.A.

56,04,056

7.

All workers

22,600

22,194

3,685

2,106

14,365

14,349

8.

All employees

29,787

29,663

4,652

2,960

19,003

18,828

9.

Wages to workers (Rs.)

13,15.43

14,48.89

1,72.49

1,07.38

9,40.67

9,74.22

10.

Total emoluments (Rs.)

18,89.42

24,95.75

2,86.98

2,00.67

12,89.57

16,28.54

11.

Fuel consumed (Rs.)  ..

19,38.26

10,65.00

74.74

1,90.13

17,66.71

6,06.30

12.

Material consumed (Rs.)

1,09,73.22

1,42,97.77

21,84.50

19,32.77

50,68.19

62,09.53

13.

Other inputs (Rs.)

N.A.

18,11.15

N.A.

3,12.32

N.A.

9,04.78

14.

Total inputs (Rs.)

1,34,12.69

1,71,74.51

23,94.55

24,35.22

70,54.88

77,20.61

15.

Plant and machinery (Rs.)

31,85.52

46,80.46

4,51.93

6,93.79

19,96.92

25,89.66

16.

Products (Rs.)

1,57,67.62

1,96,78.75

27,46.05

24,41.94

86,91.23

1,00,28.51

17.

Other output (Rs.)

N.A.

21,21.81

N.A.

4,59.01

N.A.

5,89.29

18.

Total output (Rs.)

1,69,56.13

2,18,00.56

28,67.58

29,00.95

93,54.70

1,06,17.80

19.

Value added (Rs.)

32,56.37

42,44.19

4,23.03

4,06.72

21,21.68

26,88.22

20.

Factory payments (Rs.)

N.A.

10,99.22

N.A.

1,56.47

N.A.

5,84.72

21.

Net income (Rs.)

N.A.

31,44.97

N.A.

2,50.25

N.A.

21,03.50

It may be useful to give a micro-economic level account of the industry in Bombay by furnishing a few details about some enterprises in this industry. It is however cautioned that the account although attempted to be comprehensive is by no means complete or even thorough. It is particularly so because of data constraints. The Richardson and Cruddas, the earliest iron works and metal mart in Bombay was. established in 1857 at Byculla. In 1909, it was credited to be one of the largest engineering works employing about 2,000 persons. It was converted into a public limited company in 1949, and was taken over by the Government of India in 1972. It is now managed as a public sector undertaking since then. It has a subsidiary plant at Nagpur, and produces steel structures for bridges, transmission line towers, general industrial plant and equipment, sugar mill plant and machinery, railway points and crossings, sluice gates and hydrants and castings. It has an installed capacity to produce 25,800 tonnes of structurals and 3,600 tonnes of C.I. castings. The Mukund Iron and Steel Works with a factory at Kurla and another at Kalwa (Thane) is a large-scale manufacturer of the following products:—

Products
(A State-wise Picture of Large Scale Industrial Activity, 1981)

Installed
capacity
(Thousand
tonnes)

Sales in 1979-80        
(Rs. crores)

Iron and Steel

212.4

66.06

Steel castings

12

E.O.T. cranes

2

Steel structurals

1.8

The Kamani Metals and Alloys incorporated in 1945 has a large plant at Kurla which produces non-ferrous metals and alloys strips. It refines and manufactures all kinds of non-ferrous metals. It has an installed capacity to produce 25,530 tonnes of metal and alloy strips per annum, the sales in 1979-80 amounting to Rs.10.98 crores. The company has sister concerns in Kurla which are engaged in engineering industry. The Nathani Steel Pvt. Ltd. has a factory at Vidyavihar which produces steel profiles, iron and steel scraps, sheet metal and machinery.


The Bombay Metal and Alloys Mfg. Pvt. Ltd. was established in 1943. It manufactures non-ferrous ingots, castings, pressure die castings, cast iron, cast steel and non-ferrous parts for railway rolling stock. It has an engineering department and foundry at Mazagaon and smelting works at Thane. The Devidayal Metal Industries established in 1951 has a factory at Bhandup which produces lamp caps and other metal products.

The Indian Standard Metal Company incorporated in 1937 has a factory near Byculla which produces gun metal, bronze, brass, bearing metals, aluminium, zinc and lead alloys, type metals, master alloys, solders and other non-ferrous alloys. It also produces many types of castings, brass and copper forgings etc. The Crown Aluminium Works at Sewri manufactures aluminium utensils and other articles. The Metallica Works Limited, Kandivli, was established in 1942. It produces alloys of various categories, die casting alloys, solders, fluxes and various kinds of castings.

The Khandelwal Metal and Engineering Works at Powai is also a large manufacturer in this industry. The National Steel Works founded in 1940 at Lahore was shifted to Bombay in 1947. The re-rolling department of this unit is engaged in re-rolling steel bars.

The Indian Smelting and Refining Co. is one of the old units incorporated in 1932. It has a plant at Bhandup and another one at Pokhran (Thane). It is engaged in the manufacture of all kinds of non-ferrous alloys and castings, commercial quality (hot rolled) brass and copper sheets; industrial quality (cold rolled) brass and copper sheets, sheets and coils. Its sales were of the order of Rs. 17.54 crores in 1977-78 inclusive of the Pokhran plant. Another large-scale company established in the thirties, 1938, was the Indian Metal Company. It produces all kinds of non-ferrous alloys as well as pressure die-castings in zinc base and aluminium base alloys. Since 1953 the company has been working on the development of speroidal graphite cast iron-castings and is now on commercial production. It also produces stainless steel heat resisting and other alloy steel castings.( Bombay Chamber of Commerce Directory,)

NON-FERROUS METALS

The non-ferrous metals industry is of recent origin. It was only during the Second World War that the industry came into being in the country. The production of metals by mining and smelting started in India in the first decade of the present century and made considerable progress during the Second War. The basic non-ferrous metal industry consists of virgin metals, alloys and semi-manufactures. The Indian Smelting and Refining Company (1932) was a pioneer in this field. The industry grew considerably during the Second World War. Its new development was particularly marked during the planning period in the case of electric wire, insulated wire, copper rods, aluminium sheets and alloys.

Reclamation of metals and alloys from scrap, which is known as the secondary metal industry constitutes an important part. It was developed considerably during the World War II, and at present there are many firms in Bombay engaged in it.

Considerable progress has been made in recent years in fabrication and castings of non-ferrous metals. In regard to aluminium particularly, industrial alloys have become increasingly popular. Copper and brass sheets are highly in demand for the production of utensils, electrical goods, electrical appliances, boilers of various kinds, pipes and tubes required for various industrial and consumer uses. Like-wise lead pipes and tubes have also been produced in large quantities for the manufacture of non-ferrous castings for various industrial purposes. The industry therefore grew greatly in importance.

Zinc is an important metal, mainly used in alloys in the production of brass, in galvanising steel sheets and wires and in the manufacture of pigments. There is a smelting factory in Bombay, which is mainly fed by imports from Bolivia. It has an installed capacity of 700 tonnes, but the actual production is less due to difficulties of imports.

Virgin aluminium is not produced in Bombay. But there are many units producing aluminium articles for domestic and industrial uses. There are many units engaged in rolling sheets and circles in Bombay. Due to the paucity of virgin aluminium these units are working very much below their capacity.

Top

NON-METALLIC MINERAL PRODUCTS

The non-metallic mineral products industry is conceived to cover a wide range of manufacturing, such as, structural clay products, glass and glasswares, chinaware and porcelain articles, cement, lime and plaster, structural stone goods, stoneware, stone dressing and crushing, asbestos cement and other cement products, slates, abrasive graphite products, mineral wool, silica products, etc. Although a majority of these articles are being produced as handicrafts in Bombay from old times, they were brought under the fold of registered factories during the last about 60 years.

The first noteworthy pottery was opened in 1877 at Naigaum. There were about 20 potteries in the north of the Island in 1909. The J. J. School of Arts pottery was regarded to possess a high order of merit. The Bombay Brick and Tile manufactory at Sewri made very good tiles at the beginning of this century. The brick and tile industry provided employment to 800 operatives, while the lime kilns to 420 operatives in 1901. Marble carving provided employment to 850 souls in 1901, while stone-carving was carried on in the form of architectural ornamentation on a large scale in Bombay.( For details refer earlier pages, Industrial Development prior to First World War.) These industries were however not covered under the Factories Act.

With the growth of Bombay, the industry underwent a process of rapid development during the course of this century. The fast developing construction industry provided a stimulus to the increase in production of non-metallic mineral products in general. The Digvijay Cement Company established a cement factory at Sewri in 1944. This is a very important unit as it provides an essential product. The Asbestos Cement Company is another important company which founded a factory at Mulund in 1934. The account of these and other concerns is given in following pages.

The statistics for the various segments of the non-matallic mineral products industry in Bombay as per the Annual Survey of Industries of 1973-74 are given below :—

Industry
No of Units
Employment
Output (in lakhs of rupees)
 

Structural clay products

39
4229
3,05.40

Glass and glass products

36
7074
17,61.52
China-ware and porcelain-ware
2
227
24.20
Cement, lime and plaster
2
312
5,60.27
Structural stone goods, stone dressing and crushing
96
1970
3,25.18
Asbestos cement, and other cement products
5
3142
13,96.22
Slate products,abrasive,graphite products,mineral wool ,silica products etc
25
1974
3,20.82

The structure of the non-metallic products industry in Bombay which is inclusive of all the manufacturing segments mentioned above can be studied from the statistics in the following table. The statistics are based on the Annual Survey of Industries in 1973-74 and 1975-77. They reveal annual averages during the respective survey periods. No particular comments on the same are given.

TABLE No.14
Non-Metallic Mineral Products
(Figs, of Rs. in lakhs)

  Item
1973-74
1975-77
   
1. No. of estimated factories
207
225
2. Fixed capital (Rs.)
12,38.94
12,72.70
3. Working capital (Rs.)
12,86.37
9,15.17
4. Capital investment (Rs.) 
29,72.05
26,89.54

5.

Outstanding loans (Rs.)

14,95.68

15,75.78

6.

Man-days worked

N.A.

43,90,985

7.

All workers                        ...

15,128

12,171

8.

All employees

18,928

14,998

9.

Wages to workers (Rs.)

5,85.17

5,19.57

10.

Total emoluments (Rs.)

8,56.74

9,35.99

11.

Fuel consumed (Rs.)

3,45.67

6,72.34

12.

Material consumed (Rs.)

23,93.16

26,36.56

13.

Other inputs (Rs.)               

N.A.

5,18.93

14.

Total inputs (Rs.)            

29,93.78

38,27.81

15.

Plant and machinery (Rs.)

17,58.18

17,90.74

16.

Value of products (Rs.)

46,09.44

49,25.20

17.

Value of other output (Rs.)

N.A.

3,94.72

18.

Total output (Rs.)           

46,93.65

53,19.92

19.

Depreciation (Rs.)

1,56.87

1,52.49

20.

Value added on manufacture

15,42.99

13,39.62

21.

Factory payments (Rs.)

N.A.

2,33.39

22.

Net income (Rs.)

N.A.

11,06.23

GLASS INDUSTRY

The glass industry occupies an important position in the economy. Besides supplying a wide range of products for daily use and of artistic appeal, a large number of industries particularly chemicals and pharmaceuticals, distillery and brewery, electric lamps, automobiles, building, and preserved food, are dependent on glass and glass goods. Scientific research, analytical and strategic operations are also dependent on the industry for glassware and apparatuses. Glass is also used for the building up of houses, such as glass bricks, tiles and window panels.

Glass manufacturing was started on modern lines in India with the establishment of a bottle making factory at Jhelum in 1892.

The outbreak of World War I gave a tremendous fillip to the rapid development of this industry. The industry experienced short-lived prosperity during the War period. The industry was hit hard during 1933-39 following the devaluation of the Japanese Yen. The industry clamoured for protection in 1937, upon which the matter was referred to the Tariff Board.

The outbreak of the Second World War once again provided an impetus to the industry by way of stoppage of imports and heavy demand for glass-ware by the defence services.

The industry now manufactures a variety of products such as sheet glass, blown and pressed-ware, bangles and other articles. In addition to the organised factories there are several small units in Bombay.

The information about a few units in Bombay is given below.

The Borosil Glass Works, established in 1962, has a factory at Marol in Bombay. It manufactures scientific and laboratory glass-ware, process piping and plant in glass, industrial and lighting products, pharmaceutical tubing, ampoules, vials and consumer-ware. It has financial and technical collaboration with an American concern. The sales turnover of this company was as high as Rs. 7.72 crores in 1979-80. The Vallabh Glass Works manufactures processed glass and many glass products in Bombay. The Empire Industries, a very old concern founded in 1900, manufactures vitrum glass, besides many other products in its factory at Vikhroli. The Vazir Glass Works at Andheri is a producer of glass vials and bottles for pharmaceuticals, and borosilicate neutral glass.( Bombay Chamber of Commerce Directory, and A State-wise Picture of Large Scale Industrial Activity, 1981 )The Bharat Glass factory at Chembur is another producer of glass-ware.

This review of the industry although attempted to be exhaustive is by no means complete.

ASBESTOS CEMENT AND CEMENT TILES

There has been a phenomenal growth in the building and construction activity in Bombay since the end of the Second World War. The growth of Bombay as the commercial metropolis of India after Independence and multiplication in the population of the city gave a fillip to the growth of the construction industry. This has had a definite impact on the rise and growth of the manufacture of cement tiles, asbestos cement and other cement products in the city. The increasing demand for cement tiles as an alternative to cement flooring during the last about 30 years has also contributed to the expansion in this industry.

As per the Annual Survey of Industries there were five registered factories manufacturing asbestos cement and other cement products in 1973-74 which provided employment to 3,142 persons including 2,284 workers.The Asbestos Cement Ltd. is one of the leading firms in India manufacturing asbestos cement products. Besides catering to the demand of the civilian population, the firm supplies asbestos cement products to the defence forces of India. It is therefore regarded as a defence-oriented industry.

As per the A.S.I, statistics for 1973-74, the capital investment in the five registered factories in Bombay amounted to Rs. 9,53,47,300, while the fixed capital was Rs. 4,47,59,100 and working capital Rs. 7,46,83,900. The value of plant and machinery was Rs. 5,52,02,000 while the raw material utilisation was worth Rs. 6,16,17,300 and fuel and power con­sumption amounting to Rs. 45,60,600. The total emoluments to employees were to the tune of Rs. 2,94,00,700 including Rs. 2,04,05,200 by way of wages to workers. The total value of inputs was Rs. 7,32,04,600, while the output was worth Rs. 1,39,62,290 of the value added on manufacture being Rs. 6,13,73,000. The value of finished products was Rs. 13,89,15,100, while that of semi-finished products was Rs. 7,08,000. The Cement Tiles Manufacturers' Association, which is a registered organisation reported 21 member manufacturers of cement tiles in Bombay, besides 29 other factories, in 1977. Of these 50 factories engaged in tile manufacturing, quite a many are not registered under the Factories Act. On an average each factory employs about 20 workers, and the total employment in them is estimated at 1,000. Though cement tile making is not a capital intensive industry, the capital investment in it is estimated at Rs. 400 lakhs. A worker is estimated to produce 300 tiles per day on an average.

In accordance with the demand for variegated and colourful tiles, the manufacturers produce beautiful mosaic as well as chequered tiles in different colours. Generally the tiles are in three sizes, viz., 8" x 8", 10" x 10" and 12" x 12". There is no dirth of demand for tiles in Bombay, and it is noteworthy that good quality tiles are also exported to countries in the Middle East and Gulf areas. The approximate value of exports may be around Rs. 50 lakhs per year.

Of the raw materials required for cement tiles, grey portland and white silvicrete cement is procured from indigenous manufacturers of cement. Dolomite powder and chips are supplied by producers in the country. Some of the colouring agents are required to be imported though others are available locally.

The workers in many of the factories are organised by trade unions of local significance many of which are affiliated to different central trade unions.

The Asbestos Cement Ltd. by virtue of its integration and assured demand for its products, appears to be comparatively free from many problems which the other factories in the industry are required to face.The other factories suffer from the lack of modernisation of machinery which is still imported at a very high price. They are also handicapped due to insufficient and erratic supply of grey cement and due to fluctuations in demand which lead many uneconomic units to close down. Restrictions on credit by banks and unhealthy price competition among manufacturers lead to uncertainty and production of sub-standard products. Cement tiles manufacturers are organised by the Cement Tiles Manufacturers Association, established in 1962. It aims at promotion of co-operation and exchange of technical know-how and also at solving problems faced by the members.

The Asbestos Cement Limited, incorporated in 1934, has a factory at Mulund. It has an installed capacity to produce 50,000 tonnes of asbestos cement products per annum, the sales turnover being Rs. 6.26 crores in 1979-80. The Nitco Tiles Co. manufactures mosaic tiles, its sales being worth Rs. 5.50 crores in 1977-78.( A State-wise Picture of Large Scale Industrial Activity, 1981. f Ibid.)

The Bombay Potteries and Tiles was established in 1933, and has two factories at Kurla and Mazagaon at present. It manufactures d wide range of porcelain ware, ceramics, glazed wall tiles, sanitary ware, special refractories and many other articles.

Though Bombay by her very nature of being a thickly populated city is not a congenial place for cement industry, there is a large-scale unit which manufactures cement. The Digvijay Cement Company, established in 1944 has a plant at Sewri which has an installed capacity to produce 2 lakh tonnes of cement, the actual production in a recent year being 1.36 lakh tonnes. Its sales were computed at Rs. 20.27 crores in 1978-79 and Rs. 17.46 crores in 1979-80.†(Ibid) In view of the acute shortage of cement and the multiplying demand from the construction industry, the cement production by the Digvijay Cement Company has assumed tremendous importance.

MANUFACTURE OF FOOD PRODUCTS

Scientific methods of processing and preservation of food products came to be developed only about a hundred years ago. The industry gained momentum mainly after the outbreak of the First World War, when supply of large quantities of bread, vegetables, fruits, meat and canned food had to be arranged, for the armed forces. Further impetus to the industry was provided by the Second World War. The wide assort­ment of the canned products and their easy transportability have created a fast increasing demand for preserved foods. Thus, an industry which had its beginnings in the scarcity conditions of war, has now assumed a considerable importance. Later, the increase in sophistication in tastes, growing urbanization, higher standard of living and the constraints of city life led to the increase in demand for food products which are more varied, exotic tasting and incorporating sophisticated flavours. Other sociological changes, such as the desire to spend less time in kitchen, the increased value placed on leizure, the hotelling habit and the weakening of family ties created increased demand for food products.

The industry has an important role to play in the national development programme which comprises food supply, economic improvement, and improved nutritional standard of the people. This is mainly a demand-oriented industry, and awaits a very bright future in view of the growing urbanization, industrialization and rising standard of living.

The history of the industry in Bombay can be traced to the first decade of the nineteenth century when one of the best known bakeries was established in Old Hanuman Lane. In 1901 there were about 350 sweet­meat makers in Bombay. But since then, with the large growth of the city and of its cosmopolitan character the number of food product makers, sweetmeat makers, etc. has greatly gone up. According to an inquiry by the Bombay University School of Economics (1960) there were 658 manufacturers of sweetmeats and farsan in Bombay, which provided employment to 2,230 persons. Rationing of food articles during the war and post-war periods had a great impact on all the food products as some of them were used as substitutes for cereal products. After derationing, sweetmeats and bread had a volume of demand lower than what it obtained during the rationing period.

In the unorganised sector there are a large number of establishments comprising flour mills, bakeries, production of edible oils, sweetmeat makers, biscuits and confectionery products, fish curing, canning of fruits and vegetables, breakfast food and dairy products. They provide employment to a considerable number of persons and cater to the needs of society and play an important role in the socio-economic life of the city.

But the scope of this narrative needs to be restricted to the food products industry in the factory sector for which reliable data are available.

The food products industry is here conceived to comprise basic food industries and processed food industries registered under the Factories Act which are engaged in flour milling, production of edible oils, biscuits, bakery products, confectionery, vanaspati, meat and fish processing, canning fruits and vegetables, breakfast food, dairy products, infant foods, malts and malt products, etc.

Table No. 1 gives the number of working factories and employment in reporting factories in the category of food industries except beverages from 1923 to 1957. The statistics for the few years with a quinquennial break-up are furnished below to illustrate the growth of this industry in Bombay during the period of 35 years :—

Year

1

No. of working factories
2

Employment
in reporting
factories
3

Percentage of employment to total factory
employment

4

1923

16

1021

0.5

1925

29

1489

0.7

1930

29

1957

1.1

1935

33

2192

1.1

1940

90

4410

1.9

1945

99

9115

2.3

1950

184

8033

2.1

1955

233

8798

2.1

1957

275

9997

2.4

These statistics illustrate that there was a hundred per cent growth in the industry in regard to number of factories, employment and percentage employment over the period of 12 years from 1923 to 1935. But the growth of the industry was tremendous from 1935 to 1940 in all respects. Actually the pace of growth was started from 1938, in which year the number of factories increased to 82 and employment to 3822. Throughout the period of war the industry continued to grow, reaching the climax in 1945. This can certainly be attributed to the boom created by the demand on account of the war and the enforcement of rationing of many food articles. The war efforts of the Government demanded considerable supplies of processed foods. The enforcement of rationing increased the demand for food products as substitutes for cereals while shortages of many articles forced the consumers to buy processed foods, There was a decline in the number of factories in 1946. But this was. a short-lived aberration as the factories began to multiply from 1947, and reached the 184 mark in 1950. It is however noteworthy that although the number of factories increased from 1945 to 1950 by about 85 per cent, there was an actual decline in employment as also in the percentage share of this industry in total factory employment. This can be attributed to the post-war stagnation, a higher degree of mechanisation with labour saving devices, and the settlement of displaced persons from Pakistan who entered this industry and started many small scale units. The same trend of growth was visible till 1955. The industry however reached a climax in 1957 with 275 factories employing 9,997 persons who formed 2.4 per cent of total factory employment in Bombay. Thus, over a period of 35 years from 1923 to 1957 the number of factories increased seventeen times, while employment therein rose only nine times. This growth of the industry must be rated as spectacular by any standards. As per Census of 1961 foodstuffs manufacturing industry provided employment to 24,112 persons in Bombay.

The Annual Survey of Industries (1975-77) has grouped together manu­facture of sugar, hydrogenated oils, Vanaspati ghee, edible oils and fats, such as mustard oil, groudnut oil, til oil and many other food processing factories though the statistics for all of them are not available separately. In respect of this industry as in the case of others, Greater Bombay ranked the first in Maharashtra State as regards the value added on manufacture by this industry. As per the A.S.I. (1975-77), the value added on manufacture by the food products industry was Rs. 19,94 lakhs per annum which formed 23.59 per cent of the total value for Maharashtra.

The selected characteristics of the industry can be analysed by the following statistics based on the Annual Survey of Industries (1975-77). There were 220 factories manufacturing food products in Bombay of which thirty were engaged in manufacture of edible oils and fats. The factories in the food products industry provided employment to 19,234 persons of whom 12,801 were workers. The share of edible oil mills in total employment was 2,941. The fixed capital in the industry as a whole was Rs. 17,93.47 lakhs, the working capital being Rs.13,96.52 lakhs. The capital investment of the factories was of the rank of Rs.38,86.77 lakhs, while their outstanding loans stood at Rs. 18,20.05 lakhs. The idemand for the products of this industry is ever increasing with increa­sing population. But the element of consumer resistance, particularly from the middle class, is quite obvious in the wake of soaring prices.

According to the A.S.I. (1975-77), the factories worked for 61,46,767 man-days per annum; the share of oil-mills in this was 9,20,615. The total emoluments paid to employees amounted to Rs.11,41.59 lakhs while wages paid to workers were only Rs. 6,09.76 lakhs per annum. It means that emoluments to employees belonging to non-working class were quite enormous. A part of it must also be accounted for by bonus and other benefits to employees. The inputs in the food products industry, as per the A.S.I., could be analysed as under :—

(Rs. in lakhs )

Item Total food products Oil mills
Fuel consumption 6,57.88 2,51.65
Material consumed 2,41,37.18 88,90.05
Other inputs 35,50.83 26,51.75
Total inputs 2,83,45.89 1,17,93.45

The value of plant and machinery of the food products factories was to the tune of Rs. 23,50.02 lakhs. The output and value added on manufacture by the factories engaged in food products and oils, as per the A.S.I., were as under :—

(Rs. in lakhs )

Item Total food products Oil mills
Value of products 2,72,76.12 96,59.35
Value of other output 32,92.61 25,54.04
Total output 3,05,68.73 1,22,13.39
Value added 19,94.11 3,78.32

It is evident from the statistics of inputs and output that the ratio is not high as in the case of many other industries. The share of material consumed in total inputs is quite high in this industry. The proportion of value of products to total output is also quite high as the bye-products of the industry are small in value. Being mainly a processing industry, the ratio of value added on manufacture to total output is considerably small.

The net income of the factories in this industry as a whole was Rs. 16,72.76 lakhs of which the share of oil mills was Rs. 2,30.78 lakhs.

Some of the segments of the food products industry are within the purview of price control measures by Government. These segments include flour mills, large-scale bakeries, infant foods and hydrogenated oils and vanaspati products. It may be useful to furnish some information about some of the segments of the food products industries in the case of which qualitative data are available.

MEAT INDUSTRY

The establishment of the Modern Abattoir by the Bombay Municipal Corporation at Deonar in April 1973 is by far the most important landmark in the history of food industry in Bombay. It is probably the first of its kind and has registered appreciable success in processing wholesome meat, both for local consumption as well as for export. It has satisfied the necessity of providing good quality and hygienic meat to the citizens of Bombay who had to put up with unwholesome meat from unhygienic slaughter houses of the worst type. This modern slaughter house, under vigilance of the Municipal authorities, relieved the citizens of illicit slaughter of animals in residential localities.

Besides production of wholesome meat, bye-products from slaughtered animals are put to gainful utilisation fetching the maximum returns.Enzyme preparations which were formerly imported in bulk, are now available from the processes in the Deonar Abattoir. Some of the bye-products are utilised in manufacture of life saving drugs and as many as a dozen national and international companies are utilising the bye-products with advantage.

CONFECTIONERY

The confectionery industry is of recent origin. The demand for its products has widened and deepened in scope in the post-Independence era. With increased urbanization and rising income confectioneries are highly in demand. The industry found a congenial home in Bombay though its growth in the country is limited. The concentration of this industry in Bombay is mainly due to the demand for its products, particularly from higher strata of society. Though the per capita consumption of confectioneries in the country is only 28 grams, the corresponding rate in Bombay is much higher.

The production of confectionery in the organised sector is much smaller than in the small industry or cottage sector. The Parle Biscuit Co., the Britannia Biscuits Co., and the Shangrila Food Products are the largest producers of confectionery in Bombay. Their products consist of biscuits, toffees, chocolates, cocoa, cocoa butter, food drinks and other cocoa-based products.

The Cadbury India was incorporated in 1948 as a private limited com­pany under the name Cadbury Fry (India) Ltd. It was changed to Cadbury India (Pvt.) Ltd. in 1977 and was converted into a public limited company. It has its factories at Panchapakhadi and also at Induri village in Pune district. Its sale of confectioneries was worth Rs. 22,45.53 lakhs and Rs. 16,65.97 lakhs in 1978 and 1977, respectively. The Shangrila Food Products founded in 1947 in Bombay has a biscuit factory at Bhandup. Its authorised capital is Rs. 50 lakhs, while issued capital is Rs. 20 lakhs.( Kothari's Economic and Industrial Guide, 1976.)

This industry has been going through a difficult period marked with ups and downs since 1968 when excise duty was imposed for the first time. Meanwhile the Government has reserved the confectionery industry for the small sector under its policy of encouraging the latter so as to provide greater employment opportunities. "The capacity utilisation of the units in this industry, set up at heavy investment, has been approximately 48 per cent only. As a result, employment has not increased and the working of the units has been highly uneconomical due to low capacity utilisation."( Ibid.)

BAKERIES

There is a very large number of bakeries in Bombay, the first best known bakery being established by a Goanese in the first decade of the last century. The industry received great patronage from the European community and Parsis in Bombay, who by virtue of their food habits were the main consumers of bread. Though no statistical data is available it can broadly be said that the bakery industry was very prosperous during the World War II. The war time spate in demand was attributable to military supplies, paucity of wheat due to rationing of foodgrains and social hazards. The industry had a slight set-back after flight of the Europeans after Independence. But this was off-set within a short time by increasing demand on account of a rapid pace of industrialisation and urbanisation of Bombay. With short-lived aberrations of upheavals due to shortage of supplies of flour and other equipment the industry appears to be developing at a rapid pace.

The etablishment of the Modern Bakeries Ltd. as a registered company by the Government of India on October 1, 1965 was the most important landmark in the history of modern and scientific production of bread. This public sector enterprise was established with an authorised capital of Rs. one crore with the object of setting up a chain of bakeries to develop bakery industry on sound and scientific lines and for improving the dietary standard of people. It has set up many bakery units with automatic equipment for production of fortified and enriched bread in cities like Bombay, Delhi, Calcutta, Hyderabad, Kanpur, Madras, Bangalore, and Cochin. Besides funds from the Government of India, this enterprise received gift aid from Governments of Australia and Canada under the Colombo Plan.

The daily production capacity of the Modern Bakery Plant at Goregaon in Bombay is 60,000 S. L. of 400 grams. The sales of this unit were worth about Rs. 1,40 lakhs in 1979-80.( A State-wise Picture of Large Scale Industrial Activity, 1981,)

The Britannia Industries is another large-scale manufacturer of bakery products in Bombay. It is the main competitor of the Modern Bakeries and matches the latter in almost all respects.

OTHER FOOD PRODUCTS

The Mahila Grihodyoga Lijjat Papad, though of recent origin is a unique manufacturer of papad. This organisation of ladies has earned a name in the food industries in Bombay for supply of papad of good and wholesome quality. The sales of the organisation were to the tune of Rs. 5 crores in 1979-80 which appears to be quite spectacular, particularly in view of the nature of the industry. It provides employment to a large number of women workers.

There is a large number of flour mills, some of them registered under the Factories Act, while a large proportion of them are governed under the Shops and Establishments Act, 1948. Separate statistical data are not available about this most essential food industry.

The Wallace Flour Mills with two factories in Bombay, one at Mazagaon and another at Tardeo is one of the best known flour mills not only in Bombay but also in Western India. It is engaged in processing of wheat into flour, rava, etc. Its production in Bombay amounted to about 79,197 tonnes, while the value of sales was to the tune of Rs. 11.59 crores in 1978-79.( A State-wise Picture of Large Scale Industrial Activity, 1981.)

The fruits and vegetable preservation industry has a good scope both in internal as well as in external markets. There is an ever increasing demand for these products from the areas in Gulf countries where daily consignments are sent by air. There are many kinds of units in food preservation and manufacture of products of corns, chocolates, dairy products such as salted butter, ghee etc. There is an assured demand for all such products. Some of the manufacturers of such products in Bombay are as under: Mahindra Food Products, James Smith & Co., Corn Products Private Ltd., Herbertson Ltd., Dr. Writers Chocolates & Canning Co., Poison Ltd., Britannia Biscuits, Khemka & Co., and Lyka Laboratories.

The equipment for this industry is manufactured mainly by the Larsen & Toubro Ltd. and the Vulcan Laval Ltd. both in Bombay.

VEGETABLE OILS AND VANASPATI

The principal vegetable oils extracted in Bombay are groundnut oil, rape seed oil, mustard oil, sesamum oil, coconut oil and many other non-edible oils. The domestic consumption of all the edible oils has increased tremendously with the rising population and standard of living of the people. The consumption of vegetable oils in industries has also considerably increased since the Second World War. The develop­ment of soap, paints and varnishes industries has stimulated the consumption of non-edible oils also. Castor oil consumption as a lubricant has also registered a considerable expansion.

There are a few oil mills at present in Bombay. A bulk quantity of oil is also brought from oil mills elsewhere.

Vanaspati is the Indian counterpart of hydrogenated oil products, like margarine, which are used as alternatives to animal fats. The vanaspati industry is the second largest food processing industry in India.( Kothari's Investor's Encyclopaedia)

The history of this industry in Europe dates back to the nineteenth century when a rapid increase in population in Europe increased the demand for butter. The demand out-stripped production of butter. Vanaspati was first imported in India from Holland, after World War I, due to insufficient supplies and the soaring prices of ghee. In 1938, about 23,000 tonnes of vanaspati was imported. The first vanaspati factory was established in India in 1930 with a smalJ installed capacity. In 1935, two factories produced vanaspati in India. During the Second World War, the demand for vanaspati increased tremendously which gave a fillip to the development of the industry.(Ibid)

The Tata Oil Mills, founded in 1917, is one of the oldest oil mills in Bombay. It has a factory at Sewri which manufactures vegetable oils, vanaspati, refined cooking oils, oil-cakes, toilet and washing soaps, toilet articles, industrial perfumes, glycerine, detergents, and allied products. The Sewri Plant comprises an oil mill, oil refinery and hydrogenation plant, solvent extraction unit, a glycerine unit, a washing and toilet soap plant, a bonded laboratory and other units. The company has two other factories, one each at Ernakulam and Calcutta.

The Indian Vegetable Products established in 1929 manufactures vanaspati, margarine, refined oil, industrial hard oils and organic chemicals in its factory at Gholapdeo in Bombay. The Ahmed Oomerbhoy Ltd., established in 1930, manufactures all kinds of edible oils, refined oils, vanaspati as well as margarine in its factory at Byculla.

The Bombay Oil Industries Private Ltd., established in 1948, is a manufacturer of vegetable oils, refined oils and fatty acids.

The Hindustan Lever, established in 1956, is another big name in the vanaspati industry, manufacturing soaps, detergents, edible fats, toilet preparations and a wide range of nutrition products. The Vegetable Vitamin Foods Company with a factory at Sion, produces vanaspati, refined oils, other edible oils and groundnut oil for industrial use. The Western India Vegetable Products Ltd. was founded in Bombay in 1945 to manufacture vanaspati, refined oils, edible oils, soaps, wax etc. It commenced its manufacturing activity in 1948.

The Godrej and Boyce is another reputed concern manufacturing vanaspati, refined oils, soaps and detergents in Bombay.

The above survey of the industry covers most of the reputed concerns in Bombay, although it is not complete.

BEVERAGES AND TOBACCO PRODUCTS

This group of industry is conceived to comprise the manufacture of beverages, tobacco, cigars, cigarettes, cheroot and cigarette tobacco.As per the Annual Survey of Industries, there were 19 registered factories including 8 units manufacturing cigars, cigarettes,   cheroot and cigarette tobacco in 1973-74, in Bombay. Their number declined to 17 including 7 cigarette factories in. 1975-77. The industry provided employment to 4,668 persons in 1973-74 and 4,522 in 1975-77. Of this, employment in the cigarette factories was, 3,557 in 1973-74 and 3,263 in 1975-77. The
position of capital in the total industry group and the cigarette factories was as under:—

(Rs. in lakhs)

Item

Total industry

Cigarette factories

 

1973-74

1975-77

1973-74

1975-77

Fixed capital

5,63.71

6,29.64

3,95.72

4,41.61

Working capital

16,22.89

14,86.99

15,19.33

14,23.85

Capital investment

23,89.13

25,07.50

20,79.83

21,69.80

Outstanding loans

10,62.21

8,69.09

10,45.77

7,25.21

The factories in the total industry worked for 1,342,175 man-days while the cigarette factories for 953,001 man-days per annum in 1975-77 survey period. The total costs incurred were computed as under:—

(Rs. in lakhs)

Item

Total industry

Cigarette factories

 

1973-74

1975-77

1973-74

1975-77

Total emoluments

4,56.57

5,29.99

3,72.33

4,19.93

Fuel consumed

37.82

71.56

21.80

37.20

Material consumed

31,99.98

31,03.64

27,45.89

26,52.01

Other inputs

N.A.

8,56.76

N.A

7,56.66

Total inputs         ..        .

38,36.49

40,31.95

33,38.32

34,45.87

The value of plant and machinery was of the order of Rs. 7,42.86 lakhs in 1973-74 and Rs. 10,04.31 lakhs in 1975-77 for the total industry. The value of plant and machinery of the cigarette factories was Rs. 6,16.83 lakhs and Rs. 7,96.18 lakhs in the years under study.

The structure of output as per the surveys can be studied by the following figures :—

(Rs. in lakhs)

 

Total industry

Cigarette factories

Item

1973-74

1975-77

1973-74

1975-77

Value of products

49,50.07

48,67.20

42,73.38

40,89.95

Value of other output

N.A

3,20.46

N.A

2,80.41

Total output

49,65.98

51,87.66

42,88.63

43,70.36

Value added on manufacture