Belapur industrial zone thriving on exports

Set up in 1963, the Thane-Belapur industrial belt is one of the most thriving estates in the state.

A conglomeration of 3,000 small-scale units spread over 23 km on the Mumbai-Pune highway, the estate is home to almost every kind of manufacturing, except aircraft and sugar and tobacco.

The small-scale units are interspersed with big daddies such as the Dhirubhai Knowledge City, BASF, Nocil and Standard Alkali chemical plants, electronic giants such as Siemens and Phililps and Mukund Iron and Steel. The sprawling estate contributes nearly Rs 1,500 crore to state and central exchequer in duties.

So crowded is the area that no plots are available here even though it is one of the most expensive estates in the state at MIDC's official rate of Rs 3,600 per sq mt.

"The major reason for this estate's thriving business is that the industries here are technology-driven and undergo constant upgradation," said R Y Angle, former chairman of the CII panel on small and medium enterprises.

Angle runs a small specialty chemical plant near Rabale and exports 90 per cent of his production.

"Whether it is in chemicals or auto ancillaries, over 60 per cent of the production from the Thane-Belapur belt is exported. It is important for us to stay in line with international requirements, so upgrades are automatic," said Angle.

And credit for the upgradation? "We have to manage by making ourselves profitable through exports. Most SMEs here are niche players and therefore have the advantage of being able to command a premium in the market both at home and abroad," said Angle.

Other advantages include proximity to the Jawaharlal Nehru Port Trust at Nhava-Sheva and the absence of octroi. However, the Navi Mumbai Municipal Corporation charges a two per cent cess on the MRP of the product.

Once the Uran road is completed, the journey to JNPT would take only a hour-and-a-half, pointed out Angle.

SD Patil secretary of Thane-Belapur Industries Association, said, "The cess is paid at the end of the year along with other taxes. So there are no delays due to octroi and our products reach the port in four to five hours and a day after leaving the factory, they are on the ship. There is minimum evasion and NMMC collects amounts way over its expectations in cess."

Last year, the NMMC kitty was enriched by Rs 80 crore against an expected Rs 60 crore. The year before that it collected Rs 70 crore against an expected Rs 40 crore. The state government has plans to introduce the cess system to all municipalities in the state except, Mumbai, Pune and Nagpur.

MSEB too manages to recover 99 per cent of the monthly Rs 65 crore energy bills in the area. "As a result, we don't have load shedding and minimum tripping. There is little or no loss of production due to power outages," said Patil.

Angle and Patil both point out that as most industries here are run by technocrats and the level of professionalism is high. "It is important that the entrepreneur understands the industry, its prospects and which way it will move in the future."

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The Thane-Belapur success story

• Business is booming because all industries here are technology driven and are upgraded constantly.
• Proximity to the Jawaharlal Nehru Port Trust at Nhava-Sheva and the absence of octroi is a major advantage.
• There is no load shedding and minimum tripping