Dharavi dreams, and a few nightmares: Businesses worried about viability

Even as many are in a wait-and-watch mode, they have questions about labour availability, access to markets and inputs, and higher costs taking a toll on their business

The recent announcement of Dharavi's redevelopment has been met with mixed reactions. While for many, it represents progress and the promise of improved living conditions, the business community within Dharavi is grappling with uncertainty.

Gopi Maruti, a 53-year-old owner of a two-storey workshop in one of Dharavi's winding lanes, embodies this apprehension. He operates a leather tanning business, an enterprise inherited from generations before him. Central to his operations is a roughly five-feet tall barrel-like machine used for leather tanning. Maruti worries about the high cost of relocating this machine, saying, "If I have to shift this to a new location, it will cost me lakhs of rupees."

Maruti's leather tanning machine, like the business itself, is a kind of family heirloom and a symbol of the deep-rooted nature of many businesses in Dharavi. Over the last two centuries, a multitude of small and large enterprises, including recycling, glass, garments, packaging, and earthenware businesses, among others, have made Dharavi their home.

In November of the previous year, Adani Properties, promoted by Gautam Adani, won the bid to redevelop the Dharavi slum, which spreads across a 259-hectare area. This project involves a substantial investment of Rs 5,069 crore.

Dharavi's redevelopment project is in close proximity to the Bandra Kurla Complex suburb of Mumbai, a detail that has caused unease among small-scale business owners operating within Dharavi. There is a prevalent fear that this redevelopment, due to its proximity to such a major commercial hub, may end up catering more to corporate offices than to small-scale industries, which currently form the backbone of Dharavi.

Earlier this month, the Maharashtra government passed a resolution to award the redevelopment project to Adani Properties. Shortly after this decision, Gautam Adani, the group's promoter, penned a personal note detailing his vision for Dharavi's redevelopment. In this note, he stated that the project would provide various amenities, including upskilling initiatives for product-based and service-based entrepreneurship models, research and development centres, data centres, micro, small and medium enterprises help desks, and marketplaces in alignment with the Open Network for Digital Commerce.

However, while Adani's vision sounds promising, the businesses that currently occupy Dharavi have concerns beyond the proposed amenities. For them, the central question is about the location of the redevelopment. 

In Dharavi's dimly-lit, narrow lanes are many workshops that don't claim ownership over their spaces. These are rented properties, and the occupants, while not expecting any direct negotiation with the Adani Group, worry about their place in the future of Dharavi. They fear a change in location might mean higher rents or taxes and potentially unviable business costs. After all, the current rent for a small workspace of about 100 sq feet in Dharavi is a modest Rs 5,000 to Rs 11,000 per month.

Several businesses have been operating in Dharavi for years, if not decades. Amit Sah, a 32-year-old owner of a printing shop, and Govindraj Chettiar, a 31-year-old maker of tiffin-box covers, are examples. They cater to top brands in banking and telecom and worry about the impact of potential relocation on their businesses. 

Similarly, many other entrepreneurs, artisans, and small-scale business owners who work in Dharavi, rent their workplaces due to either choice or financial constraints. Padmaja Rajguru and Sachin Shinde, both entrepreneurs in the leather industry, represent this group. For Rajguru, Dharavi provides her with the necessary machinery to manufacture her products. For Shinde, Dharavi's allure lies in its abundance of skilled labour and the presence of allied industries. However, both express concerns about the availability of skilled labour if they were to relocate.

A significant portion of Dharavi's labour force comprises migrants from states like Bihar and Uttar Pradesh. They live and work in the same places, a fact that has given rise to concerns about where they will live if the workshops are relocated. Anwar Hussain Sheikh, a 42-year-old waste recycler, along with Haider Ali, a 51-year-old fellow waste recycler, have echoed these concerns. They worry that moving the recycling cluster to a far-off location could increase the cost of transportation, making the recycling of certain materials unviable.

The business community's worries are mirrored in the broader Dharavi community. Everyone is waiting to see how the redevelopment plans unfold. While some, like Maruti, contemplate retirement, others, like Chettiar, are hopeful about the potential opportunities the redevelopment might bring. They all agree on one thing: the redevelopment of Dharavi is a significant change, and it will have far-reaching impacts on their businesses and their lives.