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.”