Saturday, June 28, 2025

Tamil Nadu’s MSMEs sharpen edge as state bets on industrial reinvention


CHENNAI:
As India advances toward its $5 trillion economic target, Tamil Nadu is scripting its own industrial resurgence — rooted not just in marquee investments but in the grit and growth of its micro, small and medium enterprises (MSMEs), which form the bedrock of the state’s economic ambition.

The southern state, home to 15% of India’s factories — the highest in the country — and the third-largest exporter with outbound shipments worth $46.5 billion, is aiming to leverage its formidable MSME base to achieve its vision of a trillion-dollar economy. With over 2.5 million MSMEs formally registered under Udyam, Tamil Nadu ranks second in the country by MSME presence, reflecting a high degree of formalisation and entrepreneurial activity.

In the 2025 state budget, the government earmarked ₹1,918 crore for MSME development — a substantial outlay aimed at creating new industrial estates, nurturing startups, and supporting artisans. Finance Minister Thangam Thennarasu announced the establishment of nine new estates by the Tamil Nadu Small Industries Development Corporation (SIDCO) with an investment of ₹366 crore, expected to generate approximately 17,500 new jobs.

The state is also offering a 50% subsidy on stamp duty and registration charges for land purchases in backward blocks to incentivise new micro and small enterprises. Though only ₹0.59 crore was disbursed under this component in FY24 — benefiting 26 enterprises — the initiative underscores an intent to level the industrial playing field across geographies.

In parallel, Tamil Nadu is implementing the Micro Cluster Development Programme (MCDP), launched in 2022–23 to spur the growth of rural micro entrepreneurs, especially among socially and economically disadvantaged communities. Executed jointly by the Commissionerate of Industries and Commerce and SIDCO, the programme aims to catalyse rural employment while supporting inclusive industrialisation. As of mid-2025, 42 micro clusters have been approved under the scheme at a total project cost of ₹203.95 crore, with ₹161.39 crore committed as subsidy. These clusters are now at various stages of implementation, anchoring localised value chains and offering scale economies to small producers.

Private investment has also begun to reinforce the state’s transformation narrative. “The entry of Tata Motors in Ranipet and Vietnamese electric vehicle major VinFast in Tuticorin is a turning point,” says V K Girish Pandian, president of the Guindy Industrial Estate Manufacturers Association. “It not only revives Tamil Nadu’s auto-component legacy but firmly positions it as an emerging EV hub.”

Simultaneously, Tamil Nadu is becoming a nucleus for non-leather footwear manufacturing, with global brands gravitating toward emerging centres like Tindivanam, Perambalur, and Hosur. Rising global demand for sustainable and cruelty-free products is creating fertile ground for MSMEs in this segment to scale up and diversify their export base.

The state’s industrial diversification is also reflected in the Defence Industrial Corridor, which spans Hosur, Salem, and Coimbatore. Though still nascent, the corridor offers MSMEs a rare opportunity to enter defence manufacturing — a space historically dominated by public-sector behemoths. Early signs of collaboration between MSMEs and defence public sector units suggest that smaller firms are gradually overcoming the entry barriers posed by long lead times and capital-intensive processes.

While new sectors gather momentum, Tamil Nadu’s traditional clusters remain resilient. Industries ranging from textiles and engineering to chemicals and electronics are not only consolidating but investing in capacity expansions and exploring new international markets. These sectors, built on decades of accumulated expertise and supplier ecosystems, continue to provide ballast to the state’s manufacturing engine.

The government is also pushing for a rural industrial pivot. The World Bank-supported Vazhndhu Kattuvom Project spans 4,000 village panchayats across 31 districts and is designed to promote rural enterprise, expand financial access, and foster local employment. It builds on prior community-based initiatives and integrates rural producers into larger value chains, ensuring that industrial growth is geographically inclusive.

Credit access remains critical to this broader vision. Tamil Nadu commands a significant share of India’s ₹35.2 lakh crore MSME credit portfolio, which grew 13% year-on-year as of March 2025. Private sector banks account for nearly 40% of this credit — a reflection of rising trust in the formal MSME ecosystem and institutional appetite to lend.

To translate policy intent into ground-level outcomes, the state is relying on ecosystem builders such as FaMe TN and Guidance Tamil Nadu, which organise investor outreach programmes, sector-specific roadshows and capacity-building sessions. These platforms have become essential to converting regulatory frameworks into tangible expansion and export opportunities for MSMEs.

Despite the momentum, the sector faces persistent structural challenges — from the slow pace of technology adoption to global supply chain disruptions and input cost pressures. Informal linkages, limited R&D spending, and skill gaps further constrain productivity in certain clusters. Experts note that navigating these issues will require more than just subsidies — it will demand institutional responsiveness, robust infrastructure, and an innovation-oriented financing strategy.

Yet Tamil Nadu’s outlook remains robust. With fresh investments flowing into emerging sectors, new industrial corridors taking shape, and policy levers steadily aligning with enterprise needs, the state’s MSME sector is poised to lead a more decentralised, inclusive phase of industrial growth. The ability to adapt and integrate — whether in EV supply chains, sustainable manufacturing or defence production — may well determine Tamil Nadu’s success in setting the standard for India’s manufacturing future.
Factfile:
1. Industrial Backbone: Tamil Nadu hosts 15% of India’s factories and ranks third in national exports, with MSMEs playing a central role in its trillion-dollar economic vision.

2, Policy Push: The state has allocated ₹1,918 crore in its 2025 budget for MSME development, including nine new SIDCO-run industrial estates expected to generate 17,500 jobs.

3. Cluster Development: Through the Micro Cluster Development Programme (MCDP), 42 rural industrial clusters worth ₹204 crore have been approved, promoting inclusive growth and employment.

4. Sectoral Expansion: New investments in EVs, defence manufacturing, and non-leather footwear are reshaping the MSME landscape while traditional sectors like textiles and engineering remain strong.

5. Financial Ecosystem: Tamil Nadu accounts for a major share of India’s ₹35.2 lakh crore MSME credit market, with rising formalisation and private bank lending boosting enterprise growth.

Women Take the Lead in Tamil Nadu’s Industrial Heartland

Chennai:

When Raadhika, a Punjabi entrepreneur from Delhi, set up a shoe manufacturing unit in Guindy in 1990, she wasn’t looking to make a statement. But in an industry dominated by men, her decision to launch an all-women production unit quietly broke new ground. “I had been inspecting shoe companies in Vellore and Ambur and decided to start my own,” she says. “It made sense to employ women—there was skill, interest, and commitment.”


Her company, Raadhika Shoe Craft Private Limited, began with just 50 women on the factory floor. Today, it employs over 500 workers, of which 80 per cent are women. Her story is emblematic of a broader, under-reported transformation in Tamil Nadu’s industrial landscape: women are not just participating in manufacturing—they are leading it.


Tamil Nadu now boasts the highest number of women-owned Micro, Small and Medium Enterprises (MSMEs) in southern India. According to Ministry of MSME data from January 2024, over 623,000 women-led MSMEs are registered under the Udyam Portal in the state. Together, these enterprises have drawn investments worth ₹17,206 crore and reported a collective turnover of ₹1.91 lakh crore. They employ more than 4.2 million people, the highest workforce count among southern states.


This change is not accidental. It has been driven by second-generation industrialists, targeted state policies, and a social push towards economic independence for women.


The daughters step up


Seethalakshmi, an engineer by training, now leads IPL Products, a manufacturer of transformers and pillar boxes in Thirumudivakkam and Kakkalur industrial estates near Chennai. “My father motivated me to take up the business,” she says. “After completing my BE in Computer Science, my husband and I decided to grow the company.” Under her leadership, the group’s turnover has tripled from ₹50 crore to ₹150 crore, and now supports 200 jobs.


Her father, Shanmugha Velayudham, received the first draft of Tamil Nadu’s MSME policy from then Chief Minister M. Karunanidhi during his tenure in the sector—an event she credits as pivotal in shaping her own entrepreneurial ambition. “It showed me that industrial policy wasn’t abstract. It was something we could be part of,” she says.


Karthika, director of Arun Plastomers, which manufactures plastic components for FMCG clients, inherited her responsibilities from the Saro Group’s first-generation leadership. But she faced hurdles her male peers rarely encounter. “There were questions about whether I could manage business travel, negotiations, or factory operations,” says the 36-year-old, who balances her role with raising two young daughters. “Proving I belonged was the first challenge.”


Policy meets ambition


Tamil Nadu has introduced a suite of initiatives to support women entrepreneurs. The Udyogini Scheme, administered by the Tamil Nadu Corporation for Development of Women, provides subsidised loans, training, and marketing assistance for women setting up microenterprises.


The Tamil Nadu Industrial Investment Corporation (TIIC) extends financial and technical support under its Women Entrepreneur Scheme, offering term loans and working capital for ventures in manufacturing, services and agribusiness.


Schemes like Mahalir Thittam, which supports self-help groups, and NEEDS (New Entrepreneur-cum-Enterprise Development Scheme), which targets first-generation founders, reflect a shift toward ecosystem building. There are also targeted programmes under the Adi Dravidar and Tribal Women's Development Corporation to reach historically marginalised communities.


But state officials admit that bridging the formal-informal divide remains a challenge. While women account for 23.5% of registered MSMEs in Tamil Nadu, their share of turnover is just 10.22% nationally, and they command only 11.15% of total MSME investment.


However, women dominate in the informal segment. On the new Udyam Assist Platform (UAP), launched in November 2023 to register Informal Micro Enterprises (IMEs), women-owned units represent over 70% of registrations and employment.


Structural challenges remain


Despite these gains, women-led enterprises continue to face financing constraints and social expectations. Access to collateral-free loans is limited, and women often remain the default caregivers, affecting their ability to scale operations. “It’s not that we lack ideas or drive,” says Karthika. “It’s time that family and institutional systems evolve with us.”


Raadhika, now preparing the next generation to take over, is more pragmatic. “Women are not just looking for empowerment—they want financial independence,” she says. “Give them a fair shot, and they’ll build companies that last.”


Thursday, June 26, 2025

Tamil Nadu and Singapore unveil blueprint forTN's first net-zero industrial park



C Shivakumar @ CHENNAI: (Pix available)
Tamil Nadu and Singapore on Wednesday launched a framework to develop what could become the first net-zero industrial park of the state in Thiruvalluvar district, as the state seeks to align its manufacturing ambitions with global climate targets.

The “Net Zero Industrial Park (NZIP) Framework”, released herei by Tamil Nadu Industries Minister T.R.B. Rajaa and Singapore’s Consul-General Edgar Pang, aims to embed sustainability principles into the design and operation of future industrial hubs.

Jointly developed by the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) and Singapore’s Ministry of Trade and Industry, the framework offers a roadmap for governments and businesses to reduce carbon emissions across the industrial value chain. The Singapore University of Technology and Design (SUTD) led the technical drafting, supported by inputs from Enterprise Singapore, the Centre for Liveable Cities, and other national agencies.

Targeted at developing countries, with a specific focus on Tamil Nadu, the NZIP Framework is designed for light industries and manufacturing sectors.  The Framework offers a pathway by integrating renewable energy sources, advanced technologies for resource efficiency, and innovative waste management solutions.However, it does not yet fully address the complex decarbonisation challenges of heavy industries such as metals, minerals, and petrochemicals.  
It is learnt that future iterations of the framework may expand its guidance to include these sectors, which are among the largest contributors to industrial emissions globally.

At its core, the NZIP Framework draws on case studies from both countries and practical insights from Singaporean companies operating in Asia. It sets targets consistent with the Paris Agreement—halving emissions by 2030 and reaching net-zero by 2050.

Industries Minister Dr TRB Rajaa said in a social media post that , "We are reimagining the industrial parks of the future, where sustainable design and decarbonisation are embedded right from inception. This new initiative will help industries reduce emissions by 50% by 2030 and aim to reach net-zero by 2050, thus aligning us with the world’s most forward-looking climate goals.

The detailed blueprint will guide every aspect of running the park including emissions accounting standards, infrastructure planning, and financing model,  Managing Director of SIPCOT, Dr K Senthil Raj said the park will be developed in Thiruvallur district. However, he did not divulge on how many acres the park will be developed.

According to the Framework, site selection will determine a large percentage of an industrial park’s emissions, even before the park is designed, by determining land use change, access to low carbon transport, and access to renewable energy.

Senthil Raj said the initiative builds on a memorandum of understanding signed in May 2023 during Tamil Nadu Chief Minister M.K. Stalin’s visit to Singapore. It also reflects Singapore’s broader strategic interest in exporting its urban sustainability expertise to rapidly growing economies in Asia.

Pang added: “As both economies deepen trade and investment ties, sustainable industrialisation is a shared priority. This is a model of what our partnership can deliver.”

Sunday, June 22, 2025

writingonblog uncensored: Tiny Chips, Big Ambitions: Chennai Bets on Low-Cos...

writingonblog uncensored: Tiny Chips, Big Ambitions: Chennai Bets on Low-Cos...: C Shivakumar @ CHENNAI: As artificial intelligence (AI) increasingly moves away from centralised cloud models, Chennai is carving out a quie...

Tiny Chips, Big Ambitions: Chennai Bets on Low-Cost Edge AI for the Next Generation of Devices




C Shivakumar @ CHENNAI:
As artificial intelligence (AI) increasingly moves away from centralised cloud models, Chennai is carving out a quiet but consequential role in the global shift toward “edge AI.” 

This emerging paradigm brings intelligence directly onto devices—where data is processed locally, reducing reliance on cloud infrastructure. At the heart of this movement is embedUR Systems, a embedded software company with a growing influence in edge computing. 

Headquartered in Silicon Valley, embedUR has operated in Chennai for over 16 years and is now expanding its footprint as demand grows for energy-efficient AI software that can run on inexpensive, low-power chips.

“We’re in the business of making software for low-cost chipsets,” said Rajesh C. Subramaniam, founder and CEO of embedUR. “We don’t build chips—we help make them intelligent.”

embedUR’s edge AI models allow devices such as routers, door locks, and even printed posters to operate without relying on the cloud. Its facial recognition software, for example, can identify up to 1,000 faces offline, using only the processing power embedded in common consumer devices.

The company’s partnerships span major semiconductor firms including STMicroelectronics, Infineon Technologies, and Synaptics. These collaborations aim to embed AI functionality in microcontrollers—turning low-cost hardware into smart, responsive systems for both consumer and industrial markets.

Edge computing is not new, but its importance has grown amid rising concerns about data privacy, latency, and internet dependency. AI at the edge reduces the need to send sensitive data to remote servers, enabling real-time decision-making with improved security and responsiveness.

Chennai has emerged as a critical development hub in this evolution. Known for its embedded systems talent and engineering universities, the city is central to embedUR’s future growth. The company plans to expand to over 2,000 employees in Chennai by 2029.

“Chennai has the expertise and cost advantages we need,” said Subramaniam. “It’s becoming our engine for innovation.”

The affordability of embedUR’s solutions is also attracting attention. While cloud-based AI chips can cost up to $10,000, embedUR’s models run on hardware priced at just $5–$10. This price point is particularly attractive to small and medium-sized enterprises (SMEs), opening up new markets previously priced out of AI adoption.

Analysts see this trend as part of a broader industrial pivot. “Software is becoming the key differentiator for chipmakers as performance and efficiency converge,” said technology analyst MSV Janakiram. “Chennai’s role is rising thanks to firms like embedUR and strategic investments from companies like Applied Materials, which is setting up a semiconductor Centre of Excellence here.”

embedUR’s experimental projects hint at the broader possibilities of edge AI. In one case, it is building models that can recognise printed posters, turning static public images into live data points for safety and marketing.

As the global AI landscape shifts from centralised cloud to decentralised edge, Chennai is positioning itself as a vital player—enabling a quiet revolution, one microchip at a time.

Thursday, June 19, 2025

writingonblog uncensored: Human Error' resulted in Chennai Metro Girder Coll...

writingonblog uncensored: Human Error' resulted in Chennai Metro Girder Coll...: CHENNAI: A deadly lapse in routine construction safeguards — attributed to human error — has cost Indian engineering giant Larsen & Toub...

Human Error' resulted in Chennai Metro Girder Collapse; Four officials sacked


CHENNAI:
A deadly lapse in routine construction safeguards — attributed to human error — has cost Indian engineering giant Larsen & Toubro (L&T) a ₹1 crore penalty after a pair of steel I-girders came crashing down at a Chennai Metro site last week, killing a motorcyclist.

The accident occurred near L&T’s own headquarters in Manapakkam, where metro construction was underway for Corridor 5 of the Phase II expansion. According to the internal  inquiry by Chennai Metro Rail Limited (CMRL), the tragedy was preventable and stemmed from a failure to follow basic structural bracing protocols.

At the heart of the collapse was a missed engineering step: workers had failed to insert additional lateral bracing in the centre of the I-girders. This omission placed undue stress on the fastening buckles — metal clamps designed to anchor the girders to temporary A-frame supports. Without the bracing, the girders shifted, and the buckles gave way, leading to the catastrophic collapse.

“These are not complex failures,” said a CMRL official involved in the probe. “This was a standard procedure that was simply not followed.”

The A-frames and fastening buckles are part of the temporary staging used in elevated metro construction, intended to stabilise heavy girders until they are permanently fixed. While the equipment itself was not faulty, the absence of mid-span support — a task usually verified by multiple safety checks — turned the assembly into a fatal risk.

L&T, which is the main contractor for this section, has sacked two senior safety officials: the Chief Safety Manager and the Senior ESHS (Environmental, Social, Health, and Safety) Manager. The General Consultant, responsible for independent oversight, has also removed two of its supervisory engineers for failing to detect the error during inspections, said T. Archunan, Director (Projects) and Board Member of Chennai Metro Rail Limited.

The incident has led to a full safety audit across all under-construction elevated corridors, CMRL said. So far, 700 of the 2,500 girders needed for Corridor 5 — a 47-km stretch connecting Madhavaram and Sholinganallur — have been installed.

Archunan said that the fine of ₹1 crore was levied based on the agreement CMRL had with its contractors.

More importantly, it underscores how construction risks often arise not from equipment failure or engineering miscalculation, but from lapses in human judgement and supervision. However, the incident has sparked renewed calls for tighter contractor accountability and better safety enforcement in large-scale infrastructure works.