Registered small scale units peak in state in 2003

The number of registered small scale units (SSUs) in the state reached an all-time high of over 2,90,000 in 2003 with an average registration of 50 units per working day.

According to a study published by the Industries Commissionerate, the office of the industrial commissioner registered 13,545 units in 2003.

SSUs contribute production of Rs 10,22,313 lakh in terms of value. There were only 2,169 registered SSUs in 1961, which crossed the 1,25,000 mark in 1991 with total registered units of 1,26,844.

The Ahmedabad district tops with 62,909 units in the tally of registered SSUs. Other districts with large number of SSUs are Surat and Rajkot at 43,015 and 30,564, respectively.

Districts such as Mehsana, Banaskantha and Katch also have considerably large number of registered SSUs at 15,257, 6,077 and 5,413, respectively, in spite of problems like water shortage and power scarcity.

SSUs in Vadodara have doubled in the last 10 years. "The new generation of self-employed is too wise so they prefer to get registered as an SSU to avail of benefits of various schemes offered by the state government," said Anil Patel, minister of state of industries, Gujarat.

The government has also offered certain relaxation on the financial front for sick SSUs, added Patel.

The textile industry has the highest registered 60,168 units in Gujarat followed by machinery parts and metal products at 22,931 and 22,218 SSUs, respectively. Over 21 per cent SSUs are functioning in the textile industry. Other major industries attracting small scale players are food, chemicals and wood products.

"There is certainly a huge growth in the small scale sector but there are reasons to worry the way these units are closing down due to financial problems and competition in the exports market," said Kishor Yogi, deputy manager (information), Industrial Extension Bureau, a state government body for industrial development.

Over 13,500 units were found closed in Ahmedabad during a census conducted by industries commissionerate in 2000.

The average investment in a SSU comes to around Rs 7,44,632 lakh, while these units in the state provide employment to 7,24,332 people.

Surat has the highest number of people employed in SSUs in the state at 1,64,000.

"Gujarat has a better infrastructure compared with other states as well as the government offers proactive schemes to attract organised players in the field," said an expert at the Gujarat Chamber of Commerce and Industries (GCCI).

The future of SSUs looks bright as India has a big domestic market. However, these firms will have to be competitive by employing professional management techniques to fight with heavy weights, said a senior GCCI member in Ahmedabad.